Guangzhou is implementing measures to support its property sector by introducing financial incentives for residents purchasing new homes. The Municipal People’s Government General Office has issued a comprehensive package of eight initiatives designed to stimulate demand for housing and stabilise the market, according to the Xinhua news agency.
A key part of the programme is a temporary subsidy. Under the policy, residents qualify if they acquire a newly built commercial property in Guangzhou before 31 December, and also sell a second-hand property in the city within one year before or after the registration date of the new purchase.
The financial aid is equivalent to 1 percent of the mortgage on the newly acquired property, with a ceiling of 30,000 yuan (approximately US$4,371) per unit. A total of 200 million yuan has been allocated to fund this programme, which will remain open until the allocated funds are fully utilised, reports Xinhua.
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Guangzhou is also increasing the maximum limits for housing provident fund loans. A sole applicant can now borrow up to 1 million yuan, while two or more applicants purchasing the same self-occupied residence can borrow up to 2 million yuan. The overall borrowing limit for qualified buyers has been raised to 3.6 million yuan.
Further measures address issues such as land availability, improving housing quality, reducing inventory levels, urban renewal, and industry regulation.
These efforts come as the Guangzhou property market shows signs of recent improvement. In the first quarter of this year, commercial housing sales, measured by floor area, saw a year-on-year increase, Xinhua says. Furthermore, prices for both newly constructed and existing homes rose in March compared to the previous month.
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