As the central government tightens its housing policies, local governments are announcing their own policies which some analysts say may offset the tightening effect on the property market.

On January the 9th, Hangzhou local government announced its new housing policies for the year. They offer home buyers a subsidy equivalent to 1.3 percent of the housing price if the floor space of the property is less than 140 square meters or they sell their own property in the city and buy a new one within the year. And residents with a demolition fund can also get the subsidy if they buy properties in the city center.

Meanwhile, Nanjing local government is offering a similar subsidy which is equal to 0.5 percent of the housing price when the home buyers want to improve their living conditions by purchasing non - luxury housing in the city. The subsidy rises to 1 percent when city residents with the demolition fund buy a unit of non - luxury housing.

In Guangzhou, the local government has for the first time made it clear that real estate developers have to pay a fee if they leave land idle, equal to 20 percent of the land price. However, the local government says developers won't have to pay the fee for circumstances out of their control.

Sources say the new local government housing policies are actually a conciliation with developers because most local government revenues come from land sales. Such policies may offset the tightening policies of the central government.

Editor: Xie Fang

Source: CCTV.com