Shanghai loosens constraints on real estate acquisitions.
Amidst the turmoil in China's real estate market, its largest city and economic hub, Shanghai, has eased the rules for buying property. Potential homebuyers must now only reside in Shanghai for three years, instead of the previous five.
Shanghai's city government implemented this change to revive the sector, which had been stalled due to stringent credit policies introduced in 2020. The construction industry's massive debt accumulation from speculative purchases during the construction boom was the primary reason for these restrictions. These measures aimed to curb real estate speculation in the 25-million-person metropolis.
Nevertheless, major players like Evergrande and Country Garden have been grappling with these curbs. The construction crisis is now considered a significant threat to the Chinese economy. In mid-May, the Beijing government proposed sweeping measures to address this, including buying unsold apartments by public institutions and streamlining credit guidelines for private property buyers.
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Despite the ongoing building crisis in China, which has impacted major real estate developers like Evergrande and Country Garden, Shanghai has relaxed property acquisition specifications to boost the market. To qualify for property purchase, individuals now only need to reside in Shanghai for three years, instead of the previous five-year requirement.
Source: www.ntv.de
