Chengdu Further Relaxes Mortgage Rules to Spur Home Sales

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Chengdu, the fourth-largest city in China with more than 21.4 million residents, has intensified efforts to increase house sales amid a prolonged slump

Chengdu, the capital of southwest China’s Sichuan province, has further relaxed its mortgage rules expanding eligibility for first-time homebuyers.

The move, unveiled on Monday by the city’s housing authority, will allow more people to benefit from lower down payments and is its latest effort to arrest a persistent property downturn.

Starting Tuesday, homebuyers in Chengdu will be recognized as first-time buyers if they do not have registered property ownership in the same district, according to the document. Those who own a property, but have it listed for sale can also enjoy the benefits of a first-time buyer when buying a second property in the same district, it said.

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Chengdu has relaxed mortgage rules, recognizing more buyers as first-time homebuyers to stimulate the property market.
The city's new rules reduce down payments to 15% for first-time buyers and 25% for second-time buyers, with additional measures to support the market.
From January to July, Chengdu's new house sales dropped by 39% and pre-owned home sales by 9% year-on-year.

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What Happened When

April 2024：: Chengdu introduced a package of measures to support the local housing market, marking its first easing of home purchase rules since 2016.

By June 2024：: All of China’s tier-1 cities — Beijing, Shanghai, Guangzhou and Shenzhen — had slashed down payment and mortgage rates following the central bank’s policy in May 2024.

Earlier August 2024：: The Huadu district in Guangzhou, southern China, offered non-local residents who buy a new home equal access to the district’s public education system.

Monday, August 12, 2024：: Chengdu unveiled the move to further relax its mortgage rules, expanding eligibility for first-time homebuyers.

Tuesday, August 13, 2024：: New rules took effect in Chengdu, recognizing homebuyers as first-time buyers if they do not have registered property ownership in the same district.

May 31, 2024：: The latest mortgage rules in Chengdu were released, setting down payments at up to 15% for first-time buyers and up to 25% for second-time buyers.

AI generated, for reference only