Chendu, the capital of Sichuan province, also plans to reduce land supply in areas where the supply of residential and commercial properties exceeds demand, while also encouraging market players to convert spare and idle non-residential housing into low-rent homes, it said. These changes well be effective Monday.
The city, which has a population of 21 million and is viewed as second-tier, is the latest to roll out stimulus measures to buttress the property market at a local-government level. While home sales in the city increased by almost 10 per cent last year to buck a nationwide slump, it got off to a low start in 2024, with sales falling 35 per cent month-on-month in January due to weak demand.
It has joined the list of other top-tier cities including Beijing and Shanghai, which eased curbs on their property market earlier through steps such as cuts in mortgage rates and by lowering the bar for home purchases.
Brace for ‘third wave’ of China bond defaults on financing costs, tighter policies: S&P
Brace for ‘third wave’ of China bond defaults on financing costs, tighter policies: S&P
New homes in Chengdu will no longer be sold through lucky draws and developers can arrange the sales on their own, the local housing administration said, a move that suggests the government is ready to scrap a cap on new home prices.
Chinese tycoon Chen Hongtian faces demands from banks on overdue property loans
Chinese tycoon Chen Hongtian faces demands from banks on overdue property loans
The company has two offshore bonds totalling 5.6 billion yuan (US$772.8 million) maturing in 2024, according to S&P Global Ratings. Another 7.3 billion yuan in onshore bonds becomes due or puttable this year.
“China’s economy is unlikely to bottom out so long as its property sector remains in decline,” Lu Ting, the chief China economist at Nomura Holdings said in a report last week. “Without a stabilisation of the property sector, the rebalancing via exports and consumption … are unlikely to progress very far.”
Beijing might eventually need to fund the completion of unfinished residential projects that have stalled due to a funding crunch, as the ultimate resolution to the housing crisis, which could rebuild confidence in developers and banks and increase demand for raw materials, workers and home appliances, he said.