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housing complex by Chinese developer Evergrande in Guangzhou saw a man walking past on September 17, 2021.Noel Celis | Afp | Getty ImagesChinese property developers' shares surged on Monday after major cities in mainland China announced measures to boost homebuyer sentiment. The central bank's policy stimulus had already been implemented.The city of Guangzhou removed all restrictions on home purchases, effective from Monday. Previously, migrant families needed to pay taxes or social insurance for at least six months to buy up to two homes, while single individuals were limited to one apartment.Shanghai lowered the required tax-paying period to one year from three years and reduced down-payment ratios for first homes to 15% and second homes to 25%. Shenzhen relaxed purchasing restrictions, allowing buyers to purchase an additional apartment in certain districts.Migrant families with at least two children can now buy two homes instead of one. Reuters reported that Beijing was considering lifting restrictions across some districts.The Hang Seng Mainland Properties Index rose 7% on Monday, extending last week's gain of over 30%. Hong Kong-listed shares of real estate developers like Longfor Group Holdings and China Resources Land gained 12.4% and 2.5%, respectively.Mainland China's CSI 300 surged 8.5% on Monday, with the CSI 300 Real Estate index jumping over 9%.Easing purchase restrictions may have a greater impact in first-tier cities like Beijing, Shanghai, and Guangzhou, said Allen Feng of Rhodium Group. Gary Ng of Natixis suggested that the effect would be more limited in smaller cities due to high inventory levels.The central government called for measures to combat the property slump last week. The People's Bank of China reduced interest rates on individual mortgages by 0.5 percentage points and lowered down-payment ratios for second homes purchases to 15%.Real estate once contributed over a quarter of China's GDP but entered a downturn after Beijing's crackdown on debt in 2020.Chinese policymakers have been supporting the sector, but previous measures haven't led to meaningful turnarounds. Erica Tay of Maybank Investment Banking Group suggested accelerating efforts to complete stalled construction projects to shore up confidence among homebuyers.Nomura analysts said swift follow-up fiscal policies were crucial and would act as tailwinds to stimulate domestic consumption and stabilize the property sector.Homebuyer demand is expected to slowly bottom out, with mortgage loan growth expected to stop contracting soon, according to Natixis' Ng. However, a sharp overall rebound in the property market will take longer and require larger measures.