Beijing Eases Property Restrictions Ahead of Peak Season

Beijing has eased property restrictions for the third time in 2026, aiming to stimulate market growth ahead of the traditional peak season. The city has shortened the required period for non-local residents to buy commercial housing within the Fifth Ring Road from two years to one year. Additionally, multi-child families are now allowed to purchase one additional home within this area, and restrictions on buying outside the Fifth Ring Road have been lifted.

The maximum loan amount for housing provident fund loans has also been increased, with dual-income families eligible for up to RMB 2.4 million for their first home, and second-home buyers capped at RMB 2 million. However, when combined with other conditions, the loan ceiling can reach as high as RMB 3.4 million.

Goldman Sachs is optimistic about the move, believing it will drive valuation recovery for mainland property stocks. The bank has 'Buy' ratings on state-owned developers such as China Resources Land and China Overseas Land & Investment. However, J.P. Morgan cautions that while the policy may have some effect in stimulating sales of smaller units, its impact on boosting homebuyer confidence may be limited.