The property market is warming up in the southern Chinese metropolis of Guangzhou after the city rolled out a series of measures in recent months. Cao Chufeng reports on how the measures have been received and what the future holds. 

A series of policies have been introduced in Guangzhou in recent months to encourage home buying. This includes lifting purchasing restrictions in specific areas of the city and allowing people to buy unlimited housing units in four more districts, namely Huangpu, Huadu, Panyu and parts of Baiyun. This makes Guangzhou the first first-tier city in China to partially lift such restrictions. And Li Pengfei, who works in real estate, says customers have responded with increasing interest. 

LI PENGFEI Store Manager, Yahuju Store, Lianjia "After the policy was implemented, we saw an increase of around 20-percent in both customer flow and the number of purchases compared to before."

From lifting purchasing restrictions and relaxing requirements for non-registered Guangzhou residents, to easing rules on mortgages, Guangzhou has introduced a raft of policies in the span of just two months. But Li says the 20-percent increase is not a huge jump for the industry. 

LI PENGFEI Store Manager, Yahuju Store, Lianjia "Twenty to thirty-percent is actually considered a relatively moderate increase. With the recent policy implementations, many customers share the feeling there could be more policies coming, so they want to observe things for a little longer."

China's property industry has faced challenges in recent years, especially in non-first-tier cities, as house prices have been decreasing. 

CAO CHUFENG Guangzhou "Similar policies have already been rolled out in many cities across China. And the message is clear, governments are trying to encourage home buying, and secure the property industry. And the questions is, are these policies enough to give a big boost to the industry in the long run?"

Professor Chen Zhuming from Sun Yat-sen University is not optimistic. 

PROF. CHEN ZHUMING School of Business, Sun Yat-sen University "Another important factor is the lack of consumer confidence. When you want to buy something, and the price is decreasing, your purchasing pace will surely slow, right? You may wonder if it has hit the bottom. Why not wait a little longer?"

Regarding the future of the property market, Professor Chen believes a decrease in housing prices is inevitable. 

PROF. CHEN ZHUMING School of Business, Sun Yat-sen University "It's certain that housing prices will decrease, as the overall demand for housing is certainly declining, which is a fact nobody can deny. However, our central government's policy is clear: it aims to prevent excessive decline."

Analysts predict more Chinese cities will introduce policies to encourage home buying in the near future.

Cao Chufeng, CGTN, Guangzhou.