According to South China Morning Port (SCMP), on Aug 9, Langfang, a city in Hebei and next to Beijing, lifted home-buying restrictions aiming to boost the gloomy real estate market.
SCMP cited Langfang’s website saying that lifting restrictions included granting equal housing rights to non-local residents and providing more housing loans for company executives and top talent, not from the city.
Yan Yuejin, research director at Shanghai-based E-house China Research and Development Institute, said Langfang’s policy changes to stimulate the estate market shows that “the situation is severe.”
Li Yujia, a senior economist at the Guangdong Urban and Rural Planning and Design Institute, said, “In recent years, the transaction volume and prices of Langfang’s housing stock have dropped significantly. From a peak in 2017 to the present, prices of many developments have fallen by half or more.”
According to SCMP, the real estate market in and around Beijing has suffered a severe recession in recent years. Langfang’s lifting of the restrictions comes amid the city’s hundreds of real estate projects that are unable to sell.
Li said that the real estate around China’s capital is unlikely to recover in the short to medium term due to weak sentiment and customer expectations for this market.