BEIJING – The property bureau in China’s northeastern city of Shenyang on Thursday denied a media report that authorities are relaxing policies on home purchases, a move that would shore up property market sentiment and ease cash flow for local developers.
State-backed media outlet Cailianshe reported that Shenyang’s housing regulator summoned major property developers on Wednesday and told them about a relaxation on property purchases.
“We haven’t received any notice on loosening (property) curbs, and restrictions remain unchanged,” the local property registration bureau in Shenyang told Reuters by phone. The housing regulator could not be reached for comment.
New home prices in Shenyang, a city of 9 million people and the capital of Liaoning province, fell in September for the first time since December last year.
Local residents are currently not allowed to purchase third homes, one measure implemented to deter speculation. Liaoning province has also warned developers against false property advertising and illegally siphoning off down-payments.
The regulations are still in place, an agent from China’s biggest home broker Lianjia told Reuters.
Sentiment in China’s property market, which accounts for a quarter of gross domestic product by some metrics, has been rocked by concerns about major property developers grappling with massive debts.
Last month, Harbin, the capital of northeastern Heilongjiang province, became one of the first cities to announce measures to support property developers and their projects to stave off a local real estate crisis.
(Reporting by Liangping Gao and Ryan Woo; editing by Richard Pullin)
