Central China city lifts house purchase limits

Wuhan, capital of Hubei province, on Wednesday became the latest Chinese city to scrap all housing purchase restrictions.

Wuhan housing security and management bureau lifted restrictions put in place three years ago on homes smaller than 140 square meters. In mid July, it lifted limits on homes above 140 square meters. Non-locals will still need one-year record of social insurance contributions if they wish to buy homes in the suburbs.

On September 15, the provincial housing department announced the lifting of the restrictions and also give home buyers tax breaks and mortgage rate discounts.

On Tuesday, Fuzhou, capital of southeast China's Fujian Province, also announced a similar move. Only a few cities, including Beijing, Shanghai and Guangzhou, are yet to lift the limits.

China's property market has performed poorly this year, becoming a drag on the economy and prompting dozens of cities to remove housing restrictions to revive sales and boost the economy. Out of 70 major Chinese cities, new homes in 68 saw month-on-month price declines in August, compared with 64 in July.

In Hangzhou, capital of Zhejiang, new home prices dropped the most among the 70 cities, down by 2.1 percent from July. New home prices in Beijing and Shanghai dropped by 1.2 percent and 1.3 percent month on month, respectively.

In early 2011, China restricted local residents to two homes each.