(Yicai Global) Dec. 23 -- Big Chinese cities, including Nanjing and Xiamen, have relaxed their house purchasing restrictions this month to boost property demand while the effect may only show in the second half of next year, according to an expert.

On Dec. 21, housing authorities in eastern China's Nanjing announced a slew of policy shifts, including a reduced down payment ratio.

Moreover, central China's Zhengzhou, a city with nearly 13 million residents, said in mid-December that college students who come to work there can enjoy the same preferential policies as locals. Finally, southern China's Xiamen and Foshan lowered their restrictions early this month.

The latest adjustments in second-tier cities should increase demand, Zhang Bo, president of 58 Anjuke Institute, said to Yicai Global, particularly mentioning first-time home buyers. The previous rule changes had targeted the supply side, which played a good role in helping property developers, Zhang added.

The entire real estate market can gradually stabilize after the demand side is improved, following the earlier work on the supply side, the property institute chief said. However, home purchasers' confidence has yet to be restored so the effect of new supply-side policies, even in highly developed second-tier cities, may be slow, he added.

Next year, the confidence of home buyers should constantly strengthen as the economy stabilizes, Zhang said. The effect is expected to be seen after the second quarter, combined with the continuous release of policies to support the demand, he added.

Second-tier cities have large inflows of migrant workers so relaxed regulations could activate the masses to buy housing. In China's first and second-tier cities, including Beijing and Kunming, more than 30 percent of households were living in rental properties in 2020, based on the latest census data. But some of them had much higher ratios. In Dongguan, the ratio was as high as 74.7 percent, and in Xiamen, it was 65 percent. Foshan's figure was 47 percent, Ningbo's 40.7 percent, and Hangzhou's 40.4 percent.

Editors: Shi Yi, Emmi Laine, Xiao Yi