Guangzhou, Shenzhen become latest Chinese cities to ease home-buying restrictions

GUANGZHOU, May 28 (Xinhua) -- Guangzhou and Shenzhen, in south China's Guangdong Province, have become the latest Chinese cities to ease the financial pressure for buying houses.

In a notice issued on Tuesday, the municipal government of Guangzhou said home buyers in the city will enjoy reduced down-payment ratios.

Non-Guangzhou residents will also be allowed to purchase two homes, the same as local residents, in six districts of Guangzhou, if they have a record of paying social insurance or income tax in the city for at least six months -- down from two years as was previously required.

The six districts, including Yuexiu, Haizhu and Tianhe, previously allowed non-Guangzhou residents to purchase only one home.

Authorities in Shenzhen have also announced new moves to lower down-payment ratios and reduce the lower limit of interest rates on home loans based on the tenor of benchmark loan prime rate (LPR) on Tuesday. The minimum down-payment ratio for individual commercial housing mortgages has been lowered to 20 percent for first-home purchases and 30 percent for second-home purchases.

The new policies in both cities will come into effect on Wednesday.

A number of Chinese cities, including Beijing, Shanghai, Hangzhou and Chengdu, have recently adjusted real estate policies, with measures such as eased purchase restrictions and trade-ins of commercial housing.

On Monday, the eastern metropolis of Shanghai unveiled a set of measures to support home buyers, including further easing home-purchase restrictions for non-Shanghai residents and allowing families with two or more children to purchase an additional home.