Golden Week: The Impact of Beijing's Stimulus Measures on China's Property Market

Sunday, 6 October 2024, 02:00

Golden Week experiences a significant boost in China's property market thanks to Beijing's stimulus measures. Property sales surged as local governments eased restrictions and buyers flocked to sales centers in cities like Shenzhen and Guangzhou. The People's Bank of China's latest policies are reshaping market dynamics.
Scmp
Golden Week: The Impact of Beijing's Stimulus Measures on China's Property Market

Golden Week: A Record Surge in Property Sales

During China's Golden Week, the property market in cities like Shenzhen and Guangzhou saw unprecedented activity, fueled by stimulus measures announced by the People's Bank of China.

Government Easing Policies

  • Guangzhou eliminated purchase restrictions for both local and non-local buyers.
  • Shanghai and Shenzhen lifted limitations on non-local residents.
  • Beijing followed suit by easing property buying measures.

These actions led to a frenzy of homebuyers, exemplified by a sales report indicating around 300 million yuan in sales just three days into Golden Week.

Market Reactions and Future Projections

The stock market also reacted positively, with the Hang Seng Index surging over 9% last week, indicating a reinvigorated investor confidence.

  1. Beijing's stimulus package comprised interest rate reductions and new mortgage requirements.
  2. Major developers reported significant increases in showroom visits, especially in luxury segments.

Despite this boost, analysts remain wary, noting that underlying issues in the property market still pose risks. Lu Ting from Nomura emphasizes the need for continued efforts to stabilize the sector.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe