(ECNS) -- Grappling with a high stock of unsold homes, the northeastern city of Shenyang has introduced a slew of measures to promote its sluggish property market, including generous subsidies to students, Beijing Times reported.
The policy, released via the official Shenyang People's Government website gives support in several areas, from housing provident fund-based loan application to exempting or reduction of deed tax and subsidies.
In China, the housing provident fund is a saving program that allows employees and employers to set aside a portion of wages to be used as deposits on home purchases.
Shenyang, an old industrial base, will encourage current students at universities and secondary vocational schools as well as new graduates to purchase houses.
Buyers who have graduated in the past five years will get a maximum loan of 600,000 yuan ($92,700) or 800,000 yuan at most for a couple. Students in school will enjoy a subsidy of 200 yuan per square meter and exemption of deed tax.
To attract graduates to work in Shenyang and boost entrepreneurship, the government will provide rent subsidies for three years, with PhD students to get 800 yuan per month and normal degree holders 200 yuan.
The capital of Northeast China's Liaoning Province also pledges to support farmers to buy houses in the city.
Yan Yuejin, a property market researcher, said Shenyang's new policies could help prevent a brain drain but that the stimulus is not expected to significantly affect house sales.
