Property purchase inquiries rise following supportive policies released in rapid succession

The number of visitors to new properties and second-hand houses increased after a series of policies and measures boosting the real estate sector were released in rapid succession during the past week.

"Inquiries for new houses and second-hand houses have increased, with about 30 percent more visits on Saturday and Sunday compared to the previous week," a sales manager surnamed Hao at a Beijing branch of Lianjia, a leading housing agency in China, told the Global Times on Monday.

As one of the latest moves, the People's Bank of China (PBC), China's central bank, on Sunday night released four major policies regarding the real estate sector, including lowering the interest rate on mortgages, lowering the down payment ratio, improving refinance for low-income housing, and extending the duration of some real estate financial policies.

The adjustment in the pricing mechanism for mortgage rates indicated a significant reduction in mortgage rates for existing home loans, with an average estimated reduction of 0.5 percentage points, CCTV reported.

Also on Sunday night, first-tier cities such as Shanghai, Guangzhou and Shenzen released policies easing house purchases to help boost the market.

Guangzhou, the capital city of South China's Guangdong Province, announced the cancellation of various restrictions on households buying homes in the city on Sunday, effective from Monday.

Stocks related to the real estate sector surged on Monday, with some stocks surging to reach their daily trading limit.

CITIC Securities said in an analysis report published on Monday that the new housing policies are expected to release improved demand actively, optimize the stock, and promote the real estate market to reverse the downturn and stabilize. The construction of the new model of the real estate market and the recovery of the real estate market demand will coexist.