According to Da Ji Yuan, China’s real estate market continues to be sluggish. For example, during the Mid-Autumn Festival holiday, the transaction of new houses decreased by 30% compared to the same period last year.

In August 2022, the number of cities with falling house prices continues to increase. Among 70 medium and large-sized cities in China, 70% of newly built commercial housing dropped in price, while this figure for older homes was 80%.

In the first half of September, provincial cities connected to find sales for real estate. For example, China Business News reported that the price of new houses in Guangzhou would likely decrease by up to 20% to stimulate demand.

Da Ji Yuan cited a real estate agent in Guangzhou saying that the information that the Guangzhou authority plans to reduce house prices is accurate. However, not all properties will be discounted by 20%.

On September 15, Jinan and Qingdao, in Shandong province, simultaneously adjusted home buying restrictions to stimulate demand. Accordingly, these two cities allow more people to buy houses and remove the restriction on buying old houses.

Previously, since the beginning of September, the cities of Ningbo and Suzhou in the Yangtze River Delta have also had similar policies.

On September 14, Luoyang City, Henan Province, issued a tax subsidy scheme for homebuyers.

According to Caixin, since 2022, at least 20 cities in China have relaxed policies for clients who want to own a second home. This trend of applying policies to stimulate demand for homebuyers is spreading to cities across the country.

However, the Economist noted on September 15 that due to the heavy impact of a series of problems, including the “zero-COVID” policy based on lockdown, “China’s property crisis hasn’t gone away: it is getting worse.”

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