Chinese city lifts curbs on buying homes as property crisis bites

BEIJING, May 10 (AFP): One of China's wealthiest cities said Thursday it would lift all restrictions on buying homes, joining a growing list of urban areas rolling back curbs as they look to prop up the faltering property market.
Many Chinese cities imposed restrictions and tough credit requirements on home purchases well over a decade ago in an effort to tamp down soaring prices and rampant speculation.
But they are now reversing those policies in a bid to stem an economic slump characterised by a debt crisis among developers, low demand and falling prices. The eastern city of Hangzhou -- home to 12.5 million people -- said Thursday it had ditched all purchase restrictions "to promote the (market's) stable and healthy development".
"From the date of issuance... those who buy lodgings within the bounds of this city will no longer have their purchasing qualifications reviewed," it said.
Hangzhou, a major innovation hub home to tech giants such as Alibaba, is one of the most desirable and expensive places to buy property in China.
The announcement quickly racked up more than 150 million views on social media site Weibo, where many users were doubtful the policy would make any difference.
"With Hangzhou's house prices, what's the point of cancelling buying restrictions? I still can't afford it," wrote one commenter.
Bill Bishop, the publisher of the influential Sinocism newsletter, called the move "a sign of desperation".
"If this does not goose sales there will be more trouble as prices will have to adjust downward a lot," he wrote on social media site X.
More than 20 cities have abolished home purchase restrictions since the beginning of last year, according to an AFP tally.
Chengdu in southwestern China said last month it would no longer look at prospective buyers' household registration documents, social security and other conditions before greenlighting purchases.