PBOC acts to boost home sales

It could cause an immediate surge in sales in places like Langfang and Yanjiao in Hebei province, both of which are only about an hour's drive from Beijing, said Yan Yuejin, a researcher at E-house China R&D Institute.

In other small cities, Yan said, homebuyers' interest could remain low because business in general has experienced no major growth over the past few years.

However, Zhang Dawei, chief market analyst at Zhongyuan Real Estate Co, argued that the timing of the rule change is important. As Chinese New Year draws near and many people head for family reunions, the new policy could arouse their interest in buying real estate in their hometowns, Zhang said.

China Index Academy, a private-sector research firm, said the average new home price in the country's 100 major cities rose in January by 0.42 percent month-on-month to 11,026 yuan ($1,675) per square meter.

Contact the writer at wangyanfei@chinadaily.com.cn