Recently, the official website of the Nanning Housing Security and Real Estate Administration published a brief notice of just over 100 characters, stating that starting from April 25, 2014, households with registered residence in the five cities of Beihai, Fangchenggang, Qinzhou, Yulin and Chongzuo within the Guangxi Beibu Gulf Economic Zone may purchase homes in Nanning under the same policies that apply to Nanning registered-resident households.

　　Why did Nanning adjust its home-purchase policy at this time? Does this mean the loosening of purchase restrictions and the beginning of a "bailout" of the market?

　　"The introduction of this new home-purchase policy is not a modification of existing regulatory measures, but an implementation step in the urbanization and integration of the Beibu Gulf Economic Zone's urban system," said Yang Xie, deputy director of the Nanning Housing Security and Real Estate Administration, on the afternoon of April 29.

　　"At present, within the Beibu Gulf Economic Zone, apart from Nanning, which implements housing purchase restrictions, the other five cities do not enforce housing purchase restrictions," Yang Xie said. He believes the new policy will, first, give full play to Nanning's radiating and leading role as the capital city and central city of the Beibu Gulf Economic Zone and accelerate regional development; second, help strengthen the cohesion of residents in the six cities of the Beibu Gulf Economic Zone and raise their enthusiasm for joint development; and third, gradually remove regional restrictions to achieve coordinated allocation and rational flow of resources within the economic zone.

　　Regarding interpretations of Nanning's adjustment of its home-purchase policy as the start of loosening restrictions and a "bailout" of the market, Bi Jianming, head of the market section of the Nanning Housing Security and Real Estate Administration, said, "At present, Nanning still strictly enforces price caps, loan limits, purchase limits and other policy measures."

　　It is understood that Nanning has enforced housing purchase restrictions since March 2011. Registered-resident households that already own one home, and non-registered households with no home that can provide proof of tax payment or social insurance contributions for at least one year, are limited to purchasing one home; registered-resident households owning two or more homes, non-Nanning registered-resident households owning one or more homes, and non-registered households unable to provide proof of tax payment or social insurance contributions are suspended from being sold housing.

　　"After research and assessment, we believe the policy introduced this time will not have a major impact on Nanning's property market," Yang Xie said. "Before Nanning implemented purchase restrictions, between 2009 and 2011, homes bought in Nanning by residents of other cities in the Beibu Gulf Economic Zone accounted for only 5 percent of Nanning's total home sales during the same period. Because, apart from the restricted areas, areas not far from the city center in Nanning have never been subject to purchase restrictions, and residents of Yulin, Beihai and other places could all buy homes in those areas. Now that the household registration limit is lifted, it is merely more convenient to complete the procedures."

　　According to data analysis provided by Nanning's housing authorities, during the years of regulation, the local real estate market did not experience major fluctuations.

　　"Compared with many other cities, Nanning's real estate market has been generally stable and healthy in recent years, and housing prices have not fluctuated significantly," Bi Jianming said. "As of March 31, the cumulative sellable area of newly built commercial housing in Nanning was 5.4241 million square meters, up 5.02 percent year on year. Based on the cumulative sellable area of commercial housing and normal sales volumes, this is enough to sustain sales for about 10 months, which is within a reasonable inventory range and does not indicate heavy inventory pressure."