The city of Shanghai has relaxed home purchase restrictions in order to allow more buyers to acquire a second property there, according to Shanghai Securities News.
The local government has broadened the definition of ‘locals’ to cover residence permit holders who have lived in Shanghai for at least three years, allowing them to purchase a second home, said one official.
Previously, authorities restricted the purchase of second homes to those who have worked in the city for an extended period of time or to those born in the city, without providing specific guidelines.
“This is certainly a measure of easing,” said Jack Gong, a Hong Kong-based analyst at Jefferies Group Inc.
The latest move could boost Shanghai’s home sales by 20 to 30 percent, said the firm.
“But the easing by the local government doesn’t mean that the central government will loosen its property controls.”
Officials from Shanghai and Beijing have already announced that they will maintain home purchase restrictions this year.
China will not waver on its property controls and efforts to bring home prices down to a “reasonable level” to ensure stability and fairness, said Premier Wen Jiabao.
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