The country's ailing property market was given a fresh boost yesterday with the announcement of tax relief for home buyers and measures to loosen liquidity constraints for developers.

As part of the package of measures unveiled by the State Council, buyers may also acquire a second flat on the same preferential terms as for their first home, if the size of the first property is below the average of the city.

Analysts and property consultants said the measures would boost transaction activity in the short term. However, a full recovery was possible only in the second half of next year once cuts in interest rates had flowed through to new demand, and a clearer picture emerged of the nation's economic outlook.

South China Morning Post