The government of Heze, a city of about 9 million people on China’s east coast, has lifted previous restrictions on selling homes, which some say may point towards a looming wider policy shift in the property market, Bloomberg reports.
Last year Heze made it so new homeowners must wait at least two years before reselling, in an effort to cool surging house prices following a Rmb3.2 trillion ($463 billion) government injection into the local economy.
This rule has now been lifted, making Heze the first Chinese city to ease property selling regulations, according to China Securities Journal.
Property easing measures have been posited as a likely tool for policymakers to help reenergize the slowing Chinese economy, particularly amid recent signs of weakening growth in the housing market.
“The policy change in Heze could be the first of many local loosenings in the property market this year,” said Yan Yuejin, property analyst at China Real Estate Information Corp. “More cities will likely follow suit.”