Non-local residents in Shenzhen can now buy property in some of the city’s core districts after the local housing authority eased restrictions and raised home-loan caps, a move likely to further improve the real estate prospects of mainland China’s top tech powerhouse.

Those holding a valid residence permit can buy one residential unit in Futian and Nanshan districts, and Xinan in Baoan district, without having to pay social security or individual tax for a year. The rules came into effect on Thursday.

The authority also raised the housing provident fund loan caps to a maximum of 700,000 yuan (US$102,378) for individuals and 1.3 million yuan for joint applicants.

For first-time homebuyers, the loan eligibility was increased to up to 60 per cent of the property price; families with one child could get a loan of 50 per cent of the property price, and families with at least two children could obtain a loan of 70 per cent of the property value, the authority said.

China’s property sector, once estimated to account for roughly a quarter of the economy, has been in a prolonged downturn since late 2020, with falling home prices weighing on household wealth.

Shenzhen, however, is tipped to turn around faster than other top-tier Chinese cities.