BEIJING (Reuters) – China’s central city of Zhengzhou has started to hand out home purchase vouchers to residents displaced by its shantytown redevelopment programme, three sources with direct knowledge of the matter said.
Residents need to purchase homes within 12 months after getting the vouchers, the sources told Reuters.
Once home purchase contracts are signed, the developer can present the vouchers to the authorities in exchange for funds, the sources said.
Zhengzhou’s housing regulator did not immediately respond to Reuters requests for comment.
Zhengzhou, a city of about 12 million people, in March said it will roll out shantytown redevelopment projects within three years, and resettled residents will receive cash compensation.
The property market in Zhengzhou has faltered since the summer of 2021 with new home prices down for the 10th month in May, in line with the sector’s slowdown across the country.
Zhengzhou’s stock of new homes stood at 13.59 million square metres in April, up 36% year-on-year, with a destocking period of 34 months, according to China Real Estate Information Corp (CRIC), an independent property consultancy service.
Zhengzhou has taken steps to support home demand this year, including subsides, smaller down payments and cuts in mortgage rates.
(Reporting by Liangping Gao, Shuyan Wang and Ryan Woo; Editing by Stephen Coates)
