Guangzhou offers home trade-in subsidies to support property market

GUANGZHOU, May 1 (Xinhua) -- Guangzhou will offer subsidies to residents who buy a new home and sell an existing one, as the southern Chinese metropolis moves to support housing demand and stabilize its property market.

The city has issued a package of eight measures, including raising housing provident fund loan limits and launching a temporary subsidy program for home upgrades, according to the General Office of the Guangzhou Municipal People's Government.

Under the policy, residents who buy a newly built commercial home in Guangzhou by Dec. 31, 2026, and sell a second-hand home in the city within one year before or after the purchase registration date, may apply for a subsidy.

The subsidy will equal 1 percent of the mortgage amount for the newly purchased home, capped at 30,000 yuan (about 4,371 U.S. dollars) per unit. Guangzhou has earmarked 200 million yuan for the program, available until the funds run out.

The city will also raise housing provident fund loan ceilings to 1 million yuan for a single applicant and 2 million yuan for two or more applicants buying the same self-occupied home. Qualified buyers may borrow up to 3.6 million yuan.

The measures also include steps on land supply, housing quality, inventory reduction, industry regulation and urban renewal.

Guangzhou's property market has shown signs of stabilization this year, with commercial housing sales by floor area rising year on year in the first quarter and both new and second-hand home prices increasing month on month in March.