Core Viewpoint - The recent policy adjustment in Beijing's real estate market, which relaxes purchase restrictions for properties outside the Fifth Ring Road, is expected to stimulate demand and market activity, marking a significant shift in the regulatory landscape [3][12]. Policy Changes - As of August 8, 2023, Beijing's new policy allows households with Beijing residency and non-residents who have paid social security or income tax for over two years to purchase an unlimited number of properties outside the Fifth Ring Road [3][9]. - The previous limits allowed Beijing residents to buy two properties citywide and one additional property outside the Fifth Ring, while non-residents could buy one citywide and one outside [3]. Market Reactions - Following the announcement, there was an immediate increase in inquiries and foot traffic at sales offices, indicating a positive initial response from potential buyers [4][5]. - Some properties saw significant price reductions, with one listing dropping from 6.39 million yuan to 5.44 million yuan, reflecting a 14.9% decrease [2]. Sales Activity - Data shows that over 80% of new residential sales in Beijing from January to July 2023 occurred outside the Fifth Ring, highlighting the area's importance in the market [9]. - The new policy is anticipated to boost transactions, as seen in previous instances where policy relaxations led to increased sales volumes [10]. Future Implications - Analysts suggest that the policy change could alleviate inventory pressures in high-stock areas and benefit approximately 80% of new housing projects, particularly those aimed at improving living conditions [10][12]. - The adjustment is seen as a signal of the government's commitment to stabilizing the real estate market, with expectations for further policy optimizations in the future [12].