Shenyang, northeast China, denies reports of easing property restrictions



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A resident walks past newly constructed residential buildings under construction in Shenyang, Liaoning Province, February 18, 2012. REUTERS / Sheng Li

BEIJING, Nov.11 (Reuters) – The real estate office in northeast China’s Shenyang city on Thursday denied a media report that authorities are easing home purchase policies, a a measure that would boost real estate market sentiment and facilitate cash flow for local developers.

State-backed outlet Cailianshe reported that the Shenyang housing regulator on Wednesday summoned major real estate developers and told them about easing property purchases.

“We have not received any notice on the relaxation of (property) borders and the restrictions remain unchanged,” the local Shenyang Property Registration Office told Reuters. The housing regulator could not be reached for comment.

New home prices in Shenyang, a city of 9 million people and the capital of Liaoning Province, fell in September for the first time since December last year.

Local residents are currently not allowed to buy third-party homes, a measure implemented to deter speculation. Liaoning Province also warned developers against false real estate advertising and illegal embezzlement of down payments.

The regulations are still in place, an agent for China’s largest real estate broker, Lianjia, told Reuters.

Sentiment in the Chinese real estate market, which accounts for a quarter of gross domestic product by some measures, has been shaken by concerns over major real estate developers struggling with massive debts.

Last month, Harbin, the capital of northeast Heilongjiang Province, became one of the first cities to announce measures to support real estate developers and their projects to avoid a local real estate crisis. Read more

Reporting by Liangping Gao and Ryan Woo; edited by Richard Pullin

Our Standards: Thomson Reuters Trust Principles.

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