Chengdu Eases Property Rules, Boosts Approval Processes for Home Sales and Loans

Chengdu, the capital city of southwestern China's Sichuan province with a population close to 21 million people, has become the first major local government in the country to ease rules for property developers by accelerating approvals for home sales and property loans. The Chengdu Housing Authority announced these measures through an official statement late on Wednesday.

The move boost liquidity within the real estate industry that is currently experiencing a significant downturn. To this , Chengdu has introduced several initiatives including speeding up approval processes for house sales and mortgage financing, as well as easing restrictions on using proceeds from pre-sales transactions.

Yan Yuejin, Research Director at Shangh-based E-house China Research and Development Institute, notes that Chengdu's initiative is the first official statement to clearly advocate faster property-related loans. He suggests that we may soon see similar actions being taken by other cities and authorities who are looking to press banks into providing quicker mortgage approvals.

This easing of policies comes as China's housing market struggles severely, adding additional pressure on the national government to stabilize an industry which contributes approximately a quarter of its economic output.

Prior to this announcement, some Chinese cities relaxed rules for land sales in recent weeks, recognizing the reluctance of developers to participate in such auctions due to their liquidity issues.

The central State Council has called upon local governments to accelerate public works projects at the beginning of next year as part of efforts to boost investment and stimulate the economy which is experiencing a slowdown.

Moreover, the government is urging local authorities to sell more special bonds this year with hopes that these will help stabilize the rapidly cooling housing market by easing access to finance for potential buyers. Official media reports suggest that faster mortgage approvals are already being implemented in certn regions after earlier calls from the central bank.

In , Chengdu's recent decision marks a significant step towards alleviating financial pressure on property developers and potentially revitalizing the sluggish Chinese real estate sector. This move may prompt other local governments to adopt similar measures med at stimulating growth within this crucial economic area.
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