China's real-estate slump: Beijing relaxes rules on multiple home ownership after 13-yr freeze to boost sales

In a bid to revitalise a sluggish property market, China has relaxed certain regulations after 13 years on buying multiple homes, according to a report in the South China Morning Post (SCMP).

According to a notice released by the housing authority on Tuesday, families that have already reached the current ownership limits can now purchase an additional home beyond Beijing’s fifth ring road.

The decision came after China’s real estate firms crumbled under the weight of massive debts and sales of new homes plunged.

Moreover, unmarried individuals holding a Beijing hukou (permanent residence permit) and non-hukou holders who have contributed to social insurance or paid income tax for five or more years will now have the chance to buy a second property in the region.

More from World

This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal Zohran Mamdani says he would arrest Netanyahu if he is elected as NYC mayor, calls Israeli PM 'war criminal'

New statistics released on Tuesday revealed a continued decline in the property market, coinciding with the relaxation of rules that were originally introduced in 2011 to curb speculative purchases.

In April, new home sales by the top 100 Chinese developers plummeted by 44.9% year-on-year (YoY) to 312.2 billion yuan (US$43 billion), marking a 12.9% decrease compared to March of this year, the SCMP reported.

The downturn in the property market was prompted by a crackdown on excessive borrowing by real estate developers, which resulted in dozens of developers defaulting on their debts. Country Garden, the largest among them, is facing liquidation proceedings. Similarly, China Evergrande, with over $300 billion in debt, is also undergoing liquidation.

Impact Shorts

More Shorts

‘The cries of this widow will echo’: In first public remarks, Erika Kirk warns Charlie’s killers they’ve ‘unleashed a fire’

Trump urges Nato to back sanctions on Russia, calls for 50–100% tariffs on China

Beijing, known for having one of the priciest housing markets in China, has implemented a series of easing measures over the past year, including introducing favourable terms for families with multiple children to access mortgages for housing. For instance, in Shanwei, located in Guangdong province in southern China, families with two or more children are eligible for loans that exceed the usual limit by 20%, along with other incentives.