TWO Chinese cities loosened rules last week to make it easier for individuals to purchase houses or obtain residency, effectively expanding a pool of potential homebuyers to prop up moribund residential property markets.

China has clamped down on property speculation since 2016 to contain a market that begun to bubble. But policymakers became increasingly mindful not to sink the market entirely — a pillar for the broader economy — at a time when an economic downturn was underway.

A district in Nanjing, capital of eastern Jiangsu Province, said Friday that among individuals with high education qualifications, diploma holders from vocational institutes are now allowed to buy homes in that area. Previously, only degree holders were eligible.

Separately, Zhengzhou, capital of Henan Province, has introduced a new policy allowing individuals to apply for a residency permit after renting a home for a year, the Dahe newspaper reported. Previously, long-term renters had no such option.

But critics say such relaxation could undermine the Central Government’s efforts to control property speculation, artificially propping up prices.

“Due to the differences in population size and structures, land resource, housing supply and demand in different places, property policies should be city-based, and can also make appropriate adjustments depending on the effect,” Economic Daily said in a commentary Friday.

“But any housing policy should be based on ‘homes are for living, not for speculation,’ not the other way around,” it warned.

On Wednesday, a city in Jiangsu Province abruptly reversed a decision to remove a ban for property resales imposed more than two years ago. The removal of the ban — which lasted for just a day — briefly fanned speculation that more cities could follow suit.

China’s house prices are expected to grow 3.1 percent next year, the lowest over a calendar year since 2015, a recent poll showed.(SD-Agencies)