FX.co ★ Beijing City Eases Suburban Home Purchase Limits

On August 8, Beijing city officials announced the lifting of restrictions on the number of homes residents can purchase in suburban areas, specifically beyond the Fifth Ring Road. This policy, effective the next day, marks a departure from the previous limit of two units per household. This change is anticipated to stimulate demand among multi-generational families and suburban investors as it aligns with China's broader strategy of "incremental easing," which involves relaxing restrictions in non-central areas while maintaining stricter controls in central zones. The announcement quickly resulted in an increase in property viewings and buyer inquiries, indicating renewed interest and potential short-term price support. More generally, this localized easing demonstrates Beijing’s efforts to stabilize the housing market amidst declining sales, an oversupply of properties, and challenges faced by developers.