Xi'an To Boost House Sales As Transactions Decline 28% Since Jan

More tier-two cities are likely to relax restrictions for home purchases and loans following Xi’an efforts to boost demand for second-hand housing, according to the China Business Journal. Xi'an, which has seen transactions fall 28% this year, will allow people working in the city without formal localised status, known as "non-Hukou residents", to pay six months of income tax - rather than two years currently - before being allowed to purchase a second-hand property. Those deemed "required talents" will not need to pay any income tax before buying. This move follows the 16 point support package announced last week by the central authorities designed to increase liquidity in the stressed property sector, with many analysts saying reviving buy-side demand was key to a recovery.