The additional measures will include relaxing home-purchase restrictions and removing price caps on new homes. It is said that these measures will be implemented in the coming weeks and that they have been under consideration over the past few months now. The sources say that the call to action comes as existing policies have failed to sustain the property sector rebound earlier this year.
The lifting of home-purchasing restrictions will be for non-core districts of major cities like Beijing and Shanghai. Meanwhile, the removal of price caps will allow developers to basically raise or lower home prices moving forward.
The good news is that at least the government is continuing to try and do what they can to rescue the property sector from its current plight. However, I still reserve my doubts on whether these measures are going to be enough. The collapse in domestic demand remains the bigger challenge and unless that is addressed, it is hard to see other parts of the economy suddenly improving.