In recent years, the Chinese Communist Party has been frequently rolling out various policies from the central government to local levels in an attempt to stimulate the real estate market, but the results have been minimal. On the last day of April, Beijing introduced new regulations, allowing resident households that have reached the limit on home purchases to buy a new property outside the Fifth Ring Road, including two properties for local families purchasing a new home outside the Fifth Ring Road. This marks the first relaxation of the 13-year-old home purchase restriction policy.
On April 30, the Beijing Municipal Commission of Housing and Urban-Rural Development issued a notice titled “Notice on Optimizing and Adjusting the City’s Housing Purchase Restriction Policy”.
According to the notice, starting from May 1, Beijing households with two properties, single Beijing residents with one property, and non-Beijing residents/families who have paid social insurance and personal income tax in Beijing continuously for five years can purchase one commercial property outside the Fifth Ring Road.
Residents or single individuals purchasing commercial properties in Tongzhou District (excluding Taihu and Majuqiao areas) must also have household registration in Tongzhou District or have a labor relationship with enterprises registered or operating in Tongzhou District, or with party and government organs, enterprises, or institutions relocated to Tongzhou District.
This adjustment signifies the first change to Beijing’s housing purchase restriction policy that has been in place since 2011.
The announcement immediately sparked discussions among the public.
The founder of Zhi Xin Youth and Weibo influencer “Geng Xiangshun” posted, “Recently, cities like Chengdu and Beijing have begun adjusting property purchase policies, reducing thresholds, lifting purchase restrictions, lowering down payments, reducing interest rates, and trying every means to encourage people to spend money on buying houses.”
“However, most young people nowadays are afraid to buy houses not because of restrictions, not because they don’t want to, but because housing prices are too high and young people don’t have enough money. High housing prices, expensive car expenses, and the high costs of childcare make it difficult for young and middle-aged individuals with low income and modest savings to afford and sustain the burden of buying a house,” said Song Zhongqing, the director of Beijing Zhongzai Cheng Law Firm.
Law blogger and Weibo influencer “Daybreak After Midnight” stated, “Testing the waters to see the trend of houses outside the Fifth Ring Road. If there is no significant effect, the policy is likely to be further loosened.”
The author of the headline article “Love Journey” commented, “This policy is a bit bizarre. Even with the current sharp decline in housing prices, the current situation is that completely lifting restrictions cannot stimulate housing consumption.”
Digital blogger and Weibo influencer “Love for Gadgets” said, “After residents accumulate a certain amount of savings, it’s impossible to say they won’t think about making a move.”
Current affairs blogger and Weibo influencer “Hainan Micro Times” asked, “Do you think housing prices will collapse?”