(AsianFin)—Hangzhou, the capital city of Zhejiang province, has ended restrictions on the buying existing homes that were introduced in 2011 in a bid to inject impetus to the city’s property market.

There will no longer be a review process for the qualifications of buyers, the city said in an official document on Thursday. Previously, buyers were required to have either a local household registration or provide personal income tax records.

"We aim to stimulate the pre-owned housing market to create a synergy between the new housing and pre-owned housing markets, thereby fostering overall market stability. If necessary, we will timely implement relevant measures to further optimize policies in response to market changes," said a spokesperson from the Hangzhou Municipal Housing Security and Management Bureau.

This move marks a major shift for Hangzhou, a major property market in China and home to China’s tech leaders including e-commerce giant Alibaba Group Holding and carmaker Geely Auto, among others. For over a decade, the city maintained stringent purchasing restrictions, which were among the most rigorous nationwide, behind only the first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen.

In addition to easing buyer qualification requirements, Hangzhou also announced adjustments to its value-added tax (VAT) policy for pre-owned homes. Under the new policy, individuals selling their homes after two years of ownership will be exempt from paying VAT. Prior to this adjustment, this exemption only applied to sales of non-primary residences after five years.

Hangzhou has also intensified efforts to address housing affordability issue for low-income families. Beginning this year, the city plans to construct a minimum of 6,000 affordable housing units for sale. It also intends to prioritize urban renewal projects and enhance compensation and resettlement measures for residents.