China’s property market, long troubled by a significant economic slowdown, is attempting to rebound during the National Day Golden Week holiday. As part of a renewed effort to revitalize the struggling sector, local governments, developers, and cities are rolling out extensive promotional campaigns to attract homebuyers. The timing is critical, as Beijing has recently introduced a series of stimulus policies aimed at breathing new life into the real estate sector.
Beijing’s New Stimulus Policies
In late September, just before Golden Week, the People’s Bank of China (PBOC) introduced several key measures to spur property sales. The mortgage rate was cut by 0.5 percentage points, and the down payment for second homes was reduced from 25% to 15%. These moves, expected to help over 150 million homeowners, are part of a broader economic package designed to boost consumption and relieve pressure from mounting local government debt.
Several major cities have responded to these national policy changes by easing local property sales restrictions. Guangzhou has eliminated all restrictions for local and non-local buyers, while Shanghai, Shenzhen, and Beijing have lowered down payment requirements. This policy shift is expected to increase sales activity and improve consumer confidence, providing a much-needed boost to the property market.
Holiday Discounts and Promotions
During Golden Week, more than 20 provinces and 130 cities in China organized property exhibitions, live-streamed events, and offered special promotions to stimulate home sales. These included discounts, subsidies, and incentives like transport subsidies for those purchasing homes in their hometowns. With developers working to capitalize on the holiday shopping rush, homebuyers are being offered attractive deals, a strategy that seems to be paying off.
Early Results: Promising Sales Surge
The initial results from Golden Week are promising. In Shenzhen, sales of new homes between Tuesday and Thursday surged 569% compared to the same period last year. Existing property sales also jumped by 233%. Beijing saw a 92.5% increase in new home viewings, while the number of offers doubled year-on-year. Nationally, the number of people participating in property sales-related activities increased by 50% compared to last year.
While the long-term effects of these policies remain uncertain, the strong sales performance during Golden Week suggests that Beijing’s stimulus measures might be working. As the property market continues to face challenges, these early signs of recovery offer a glimmer of hope for a broader economic revival.
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