Local govts mull loosening property restrictions, developers relieved

File photo. [Photo: Chinanews.com]

(ECNS) -- More local governments in China are seeking ways to loosen restrictions on property sales after Nanning of Guangxi province lifted bans last month on non-residents buying property, which was welcomed by developers.

Nanning was the first to loosen the three-year nationwide restrictions in the property market. Then Wuxi of Jiangsu province and Xiaoshan district of Hangzhou city also issued new real estate policies.

Binhai district in Tianjin, Fuzhou city of Fujian province, and Zhengzhou city of Henan province all implied they are considering similar policies.

The country's real estate market cooled amid a strong wait-and-see sentiment since the beginning of 2014. According to the National Bureau of Statistics, fewer cities have reported price increases. In March, 56 of 70 major cities saw prices rise, the lowest level since January 2013.

Housing prices have hardly fallen, but local governments have already become worried, as they are used to relying on revenue from land auctions and sales taxes, an outspoken developer told China Times.

"Then why should we reduce prices, since local governments are trying to save the market?" he added.

Another developer from Changsha said they are not so pessimistic, thanks to the local government.

Industry specialists said changes may be seen in smaller cities. If there are no objections, other cities may follow suit.