China’s Changsha, Nanjing relax homebuying restrictions, offer generous subsidies as they compete for talent to boost growth

An increasing number of mainland Chinese cities are rolling out favourable policies and subsidies to help skilled immigrants buy homes in an attempt to spur their Covid-affected economies.

Changsha, the capital of central China’s Hunan province, said on Wednesday that diploma holders aged 45 or below, who have a hukou or household registration in the city, pay taxes or social security, can buy homes in areas where households are restricted to owing a maximum of two units. The city scrapped the age limit for those with master’s degrees and doctorates.

The policy is a continuation of Changsha’s plan to attract talent to strengthen its economy. Last May, the city said it would allow skilled workers to immediately apply and get a local hukou, giving them the same benefits as local residents.

Changsha’s plan came close on the heels of a similar move by Nanjing on Tuesday. The capital of eastern Jiangsu province said it would split talent into six categories and hand out subsidies for renting and buying homes for five years starting February 12.

The measures from local authorities to help skilled immigrants buy property came as China’s new home prices continued to fall for the 16th consecutive month in December, according to data released by the National Bureau of Statistics on Monday. Among 70 large and medium-sized cities, 55 saw a decline in home prices, an increase of four compared with the previous month.

The Nanjing government said it would provide subsidies of up to 50 per cent of the property’s value or a maximum of 2 million yuan (US$295,300) to professionals such as technology or R&D heads at Fortune 500 companies to buy homes in the city.