(Yicai) May 16 -- Several Chinese local government and state-owned enterprises have started buying unsold commercial properties or second-hand homes in an effort to help revitalize the sluggish real estate market.

The housing authority in Hangzhou's Lin'an district said on May 14 that it would acquire residential properties with a total area of up to 10,000 square meters for public housing. Each property will have an area of no more than 70 square meters, already finished or expected to be completed within one year.

On May 9, Hangzhou announced it would lift all property purchase restrictions implemented in 2016, allowing residents to buy houses in the city without needing any qualification reviews.

The housing market in Hangzhou is facing significant pressure. New home sales in the city totaled 440,000 sqm in April, down 43 percent from March and 60 percent from a year earlier, according to real estate research firm China Real Estate Information Corporation. Sales in the suburban areas, including Lin'an, have been even more sluggish.

The properties the Lin'an government plans to buy have a relatively small area, so the move will not effectively alleviate the large inventory backlog, said Gao Yuansheng, executive deputy general manager at the eastern China branch of the China Index Academy. However, the move may lay the foundation for the future introduction of more real estate policies, Gao added.

Zhengzhou Urban Development Group, an SOE in Zhengzhou in central Henan province, has been acquiring second-hand homes from residents to encourage them to buy new houses.

Nanjing, a city in eastern Jiangsu province, also launched a pilot program to exchange old houses with new ones at the end of last month, with an initial quota of 2,000 units.

Authorities in first-tier cities have not directly participated in the acquisition of housing resources, but Shanghai and Shenzhen are trying to encourage the exchange of old apartments for new ones by collaborating with local real estate developers and property brokerage firms.

Editors: Dou Shicong, Futura Costaglione