Real estate Photo:Xinhua

Some property agents have seen an increase in enquiries and property inspections on Thursday,mk after the Beijing municipal government on Wednesday announced several major adjustments to policies for home purchases, including lowering the minimum down payment, in a bid to boost home sales.

The move by Beijing makes it the latest first-tier city in China to ease home buying restrictions, which is expected to boost the property market in China over the second half of the year, experts said.

A property agent surnamed Jin told the Global Times on Thursday that the number of enquiries had picked up, with more potential clients  asking about the latest policies. 

"There are more enquiries. I believe that the easing of home buying measures will help boost trading and stimulate the market," Jin said.

Starting on Thursday, the minimum down payment ratio in Beijing for first-time home buyers has been lowered to 20 percent, down from the current ratio of 30 percent, according to a notice issued by several Beijing municipal government departments.

For second-home buyers, the down payment ratio for homes within the Fifth Ring Road is lowered to 35 percent, and for homes outside of the Fifth Ring Road, the ratio is lowered to 30 percent.

Also notably, for families with two or more children, the purchase of a second home is now eligible for more favorable policies previously reserved for first-time home buyers, according to the notice.

Beijing’s move followed similar measures adopted by a growing list of cities across China to relax restrictions on home purchases in a bid to boost the real estate market.

For example, Shanghai on May 27 announced to cut the down payment ratio for first-time home buyers to 20 percent from the previous 30 percent, and the ratio for those who buy second homes has been cut to 35 percent from 50 percent. 

Additionally, the mortgage rate for first-time home purchases has been lowered to 3.5 percent, while the rate for second home purchases has been reduced to 3.9 percent from 4.5 percent.

"This policy adjustment in Beijing carries significant implications as the last of the four first-tier cities to adjust housing down payment and interest rate policies, signaling that overall policies in these cities are now more coordinated and more positive,” Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Thursday.

"This move creates a very good environment for homebuyers in the second half of the year and will help boost market confidence, which will have a positive impact on the market outlook," Yan said.

There have been positive developments in China’s property market, with the decline in sales of new homes narrowing in the first five months, according to data published by the National Bureau of Statistics (NBS) last week.

Liu Aihua, a spokesperson for the NBS, said that since mid-May, with the further optimization of real estate policies by relevant departments and regions, the real estate market has shown some positive momentum. Despite the ongoing adjustments, the market is still in a transitional phase, and the full impact of the policies has yet to be realized.