Shanghai, Shenzhen To Lift Key Home Purchase Curbs To Boost Market

Shanghai and Shenzhen, two of China's top cities, are planning to lift key remaining restrictions on home purchases in an effort to attract buyers and support their faltering real estate markets, Reuters reported, citing four sources with knowledge of the matter.

Sources indicated that both cities would remove limits on the number of homes that individuals can buy.

The changes would eliminate the need for buyers to undergo eligibility vetting, and people from other regions of China would be allowed to purchase homes in these high-demand cities, which had previously been tightly regulated to curb excess speculation.

Three of the sources also indicated that both cities would remove limits on the number of homes that individuals can buy.

The changes are expected to be announced in the coming weeks, following a broader trend in which multiple Chinese cities have abolished purchase restrictions over the past year to revive demand in the crisis-hit sector.

The sources requested anonymity as they were not authorized to speak to the media.

China's State Council Information Office and the Ministry of Housing did not immediately respond to requests for comment. Shanghai and Shenzhen first implemented home purchase limits in 2011 and 2010, respectively, to cool surging real estate prices.