Market Insight | Real estate stocks across the board rise as Chengdu fully lifts purchase restrictions, institutions say other restricted cities may continue to relax
Chengdu has completely lifted its housing purchase restrictions, leading to a surge in domestic real estate stocks. Sunac China Holdings rose by 15%, China Oceanwide Holdings by 10.53%, Shimao Group by 8.45%, and Vanke by 7.45%. This move is expected to promote the recovery of the real estate market, and other cities with purchase restrictions may also consider relaxing their policies
According to the information from the Wise Finance APP, real estate stocks are all on the rise. As of the time of publication, Sunac China Holdings (00884) rose by 15% to HKD 0.345; China Oceanwide Holdings (03377) rose by 10.53% to HKD 0.315; Shimao Group (00813) rose by 8.45% to HKD 0.385; and China Vanke Co., Ltd. (02202) rose by 7.45% to HKD 4.47.
On the news front, on April 28th, the city of Chengdu in Sichuan Province issued a notice stating that housing transactions in the city will no longer be subject to qualification review, making Chengdu another city to fully lift housing purchase restrictions after Wuhan, Hefei, Nanjing, Changsha, and other hot provincial capital cities. As of now, except for Hainan Province, among the core cities, only Beijing, Shanghai, Guangzhou, Shenzhen, the four first-tier cities, and core areas such as Hangzhou (new homes), Tianjin, and Xi'an still maintain purchase restrictions.
China CITIC Securities' research report stated that Chengdu has issued new real estate policies, removing the qualification review for housing transactions citywide, effectively abolishing purchase restrictions. It is expected that the downward trend in the Chengdu market may be reversed after the introduction of this new policy. Since 2024, several key cities, including the four first-tier cities, have successively relaxed purchase restrictions. The market has responded positively to these policies. The relaxation of purchase restrictions is of great significance in releasing housing demand and promoting the recovery of the real estate market. Cities that still retain purchase restrictions are expected to continue to relax them in the future