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Beijing has eased home purchase restrictions for families registered outside the city and those with multiple children in its central urban areas, aiming to stabilize the housing market.
Effective immediately, non-Beijing registered families looking to buy property within the Fifth Ring Road need only have maintained social security or paid individual income taxes in the city for two years, down from three. For properties outside the Fifth Ring Road, the required period has been reduced from two years to just one.
Additionally, multi-child families registered in Beijing can now purchase up to three homes within the Fifth Ring Road, an increase from the previous limit of two. Families who are not registered in the city but meet the social security and tax payment criteria can buy two homes within the same area.
Mortgage policies have also been adjusted. Banks are now required to treat new buyers equally, regardless of whether they’re purchasing their first or second home. This means second-time buyers can access the same interest rates and down payment terms as first-time buyers.
In August, Beijing lifted restrictions on qualified non-local residents buying homes outside the Fifth Ring Road, though the rules for properties within the ring remained unchanged.
This latest policy shift occurs amid persistent declines in Beijing’s property prices. Industry experts report that the average price per square meter for pre-owned homes has been falling for eight months straight, with the overall transaction prices declining even more noticeably.
Last month, the city’s resale home sales totaled 14,446 units, representing a 20% increase from October but a 23% decrease compared to the previous year, according to housing authorities. By December 20, sales slightly dipped further to 14,362 units year-on-year.
The average price of a resale home in Beijing has dropped from 3.8 million CNY (approximately $540,655) in June to 3.5 million CNY (around $497,970) in December, reports Heshuo Institution’s lead analyst.
Market stability depends heavily on the balance between supply and demand. Currently, around 157,000 pre-owned homes are listed—down from a high of 176,000 last year but still above the low point of roughly 100,000 units. Experts suggest that only when listings decrease to between 100,000 and 120,000 units might prices stabilize, or even begin to rise again.
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