China's Xiangshan County In Zhejiang Eases Home Purchase Limits

Xiangshan county, in China's Zhejiang province, has relaxed some restrictions on home purchases, the China Securities Journal reported Thursday, citing unnamed local real estate agents and developers.
The report said the real estate agents and developers have been telling their customers they are able to buy third and subsequent homes if they can pay the full purchase price, without taking a mortgage, effectively reversing a ban on such purchases implemented last year.
The report also said such buyers will receive a certificate of property ownership for their purchases, indicating the policy has the backing of local authorities.
Xiangshan county is the latest locality to loosen controls on the property market in the face of falling revenues from land sales and property taxes, and despite Beijing's determination to drive down home prices. In fact, the central government has already ordered some cities to reverse their easing measures.
"This year, Xiangshan has cancelled the home purchase restrictions but (we) can't tell others. The adjustments were locally made," a member of a local property association in Xiangshan was cited as saying by the report.
However, the report also cited Xiangshan county's housing bureau as saying the purchase restrictions haven't been eased, and that the county is continuing to implement the curbs according to the policies of Zhejiang province and the city of Ningbo. Xiangshan is in Ningbo.
The average price of a second-hand home in Xiangshan rose 2% last year to CNY7,598 per square meter, the report said.
Housing sales and prices in many areas in China have fallen in recent months due to the government's property curbs.