Beijing further relaxes home-buying curbs in property boost bid

Beijing has further relaxed home-buying restrictions to boost the struggling property market in the Chinese capital. The city's authorities aim to address the housing market slump, which has been in effect for the past five years, and to stimulate domestic demand. The property sector, which once made up a quarter of China's second-largest economy, has been grappling with a debt crisis since mid-2021.

As of August 8, Beijing will now relax insurance or income tax payment requirements for non-Beijing families to purchase homes within the Fifth Ring Road, a major expressway surrounding the central area. Non-local residents, specifically those without a Beijing "hukou," can now buy homes within the capital if they have made consecutive income tax payments or social insurance contributions in the city for a minimum of one year. This is a reduction from the previous requirement of two years.

In addition to the new rules regarding residency, the authorities have raised caps on housing provident fund loans. Single contributors can now access up to 1.2 million yuan (approximately US$178,000) for their first home, while dual-income households can tap up to 2.4 million yuan. Moreover, top-ups of 600,000 yuan and 1 million yuan are available for buyers in outer districts, green-certified housing, or families with two or more children.