In a recent major policy adjustment, the city of Hangzhou lifted restrictions on home purchases. This move has also caused a lot of sensation in China's real estate market. While most of the news has been promoting the lifting of restrictions, the reality is that there is much more to the policy than that, and there are other highlights that stand out.
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First of all, we need to understand Hangzhou's superior position in the mainland real estate market. As a major representative of China's real estate, Hangzhou is characterized by its steady economic development, good urban planning, and livable environment, which have made it famous throughout the country as a popular location for home purchases.
The direction of its real estate market is often considered a bellwether for other cities across the country. Therefore, any real estate policy of the Hangzhou municipal government will attract very wide attention and may have a profound impact on the entire industry.
Second, the impact of Hangzhou's policy of lifting purchase restrictions is not limited to the city itself, but may have a significant impact on the real estate market of other cities.
Because of Hangzhou's position in China's real estate market, other second-tier cities, including third- and fourth-tier cities, usually follow his example and make similar policy adjustments when appropriate. Therefore, this policy change may be considered as a leading indicator, for a similar purchase restriction policy.
The most striking news is that the Hangzhou government has adjusted the qualifications and interest rates for the first home in this adjustment. Under the new policy, buyers who buy their first home will enjoy more favorable and relaxed loan terms and will face lower interest rates, which will greatly contribute to the current activity of the real estate market in the mainland.
Over the past few years, Hangzhou's real estate market has been in a relatively sluggish state, partly due to purchase restrictions. Under the changes in market conditions, with the lifting of the purchase restriction policy and the relaxation of the first home loan conditions, we can all foresee that the Hangzhou real estate market will usher in a new wave of prosperity cycle in the future.
At a time when restrictions on home purchases are being gradually eased across China, the number of cities and regions in which restrictions have been implemented has been reduced to seven, a trend that shows that governments at all levels are beginning to review the supply and demand situation in the real estate market.
A more flexible approach to managing the market, especially for areas that were once popular for home purchases, is now also considering easing purchase restrictions. Because over-restrictive restrictions are no longer as applicable in today's market environment as they once were.
The country's determination to stabilize the real estate market is also beginning to show. Although the current policy is just the beginning, the stability of the real estate market is still facing a very serious challenge, as the decline in housing prices is still a deep-rooted constraint in the market.
In addition to policy adjustments, the real estate market is also facing various pressures, all of which pose a certain resistance to the recovery of the market. Therefore, the government should continue to introduce more comprehensive and targeted policies to deal with the changing situation in the market.
The gradual lifting of the purchase restriction policy is the trend, compared to this beginning, but more critical is the adjustment of subsequent policies, such as credit policies. Although some cities have eased purchase restrictions, high-interest mortgages remain one of the main concerns for home buyers.
Some local governments have begun to stimulate the housing market by adjusting interest rates and loan conditions, which also shows that the government has also realized the importance of credit policy to the real estate market through the exposure of various phenomena. However, for some cities with high housing prices, measures such as further lowering loan interest rates and increasing loan amounts are needed to truly stimulate the growth of housing demand.
The relaxation of restrictions on hukou will also help the urban population to solve the structural imbalance. Some large cities are also lowering the bar even further to attract more people to the city.
Policies will also provide more and more opportunities for those who have already bought a home, allowing residents to settle down to enhance their sense of citizenship. But the government also needs to be careful to control and avoid over-concentration of some population resources.
Some netizens made sharp comments, pointing out that if the market is still sluggish after liberalization, what else can be done to save it?
Some netizens also said that real estate does not pit the poor, so they also pointed out that there are still great risks in this industry market and it is necessary to invest cautiously.
Some netizens also got a glimpse of the current trend in Hangzhou and saw that the real estate market is so declining.
Some netizens also believe that there is no way to redeem this dilapidated situation with the current policy, and we should respect the laws of the market and accept this market situation.