(Yicai) June 11 -- Sales of new homes in Wuhan surged 40 percent after the central Chinese city relaxed its housing policy a month ago.

Almost 6,960 new housing units or 827,000 square meters of properties were sold in Wuhan since the new policies came into effect on May 6, according to official data.

More than 230 new homes exchanged owners per day, up from an average of less than 170 units in April and a 47 percent increase from the daily average during the first four months of this year.

Since May 6, urban districts of the capital city of Hubei province have raised their subsidies for homebuyers and relaxed settlement conditions. Moreover, the city has lowered its down payment ratio for first and second-time homebuyers to a record low after the central bank unleashed its latest wave of real estate policy easing on May 17.

At present, Wuhan’s mortgage rates and minimum down payment ratios are at the lowest level in history, making it one of the most homebuyer-friendly cities in the country, Li Guozheng, director of a market research center of the China Index Academy, said to Yicai. However, transactions of new homes are rising just in month-on-month comparison but declining when contrasted with numbers from last year, which aligns with the trend of major cities. Moreover, homebuyers expect to see more preferential policies so they are in a wait-and-see mood, Li added.

The continuous release of favorable policies will stimulate market vitality and help boost market confidence, Hu Yun, manager of a research department of Cushman & Wakefield, told Yicai. However, the real estate industry and market are not so likely to see fundamental changes in the short term as the market needs more time to respond to fresh policies, Hu added.

Editor: Emmi Laine