Easing Hukou Rules Accelerates War for Talent

China's solution for the housing market is eased residency rules. The long-awaited hukou reform. This won't solve the crux of the emerging problem: there are too few homebuyers to go around. Attractive cities will grow population and everyone else will lose youth population.

iFeng: 地方两会部署楼市：坚持房住不炒，放宽落户限制

Some provinces explicitly relax restrictions on settlement

In other provinces, the government work report explicitly proposed opening up and relaxing restrictions on settlement.

Guangdong made it clear that it adheres to the "one city, one strategy" policy and promotes the stable and healthy development of the real estate market. Accelerate the promotion of new-type urbanization, and liberalize restrictions on the settlement of cities other than Guangzhou and Shenzhen.

Hubei proposes to improve the Wuhan points settlement policy, and other cities to remove restrictions on settlement.

Gansu proposed that the conditions for the settlement of provincial capital cities be fully relaxed, that for small and medium-sized cities be fully liberalized, that the residence permit system be fully covered, the civicization of the agricultural transfer population be accelerated, and the urbanization rate of the registered population should be 38%.

According to the National Development and Reform Commission, in 2019, Hainan Province and large cities such as Ningbo, Guangzhou, Nanjing, Xi'an, and Shijiazhuang introduced new settlement policies to further liberalize and settle down conditions. At present, with the exception of some provincial capital cities, restrictions on urban settlements have been basically eliminated in the central and western regions and the northeastern region; small cities in the eastern region have basically no entry thresholds, and policies for large and medium-sized cities have continued to relax.

National Development and Reform Commission spokesman Meng Wei recently pointed out that in 2020, urban settlements will be promoted. The key is to stabilize the employment of agricultural and other key populations, so that they can settle in cities and towns more conveniently. At the same time, the expansion of basic urban public services to the permanent population Coverage, effectively improve the quality of civicization of the transferred agricultural population, and ensure that the goal of 100 million people settled is fully fulfilled.

Zhang Dawei believes that liberalizing the settlement policy will help those who already live in the city obtain public resources in the city. For the real estate market, there is also a stable market demand.