Guangzhou Affordable Housing Group, a State-owned enterprise in Guangzhou, the capital of Guangdong province, will soon launch a pilot program to support local residents in selling old and buying new homes, according to a senior manager of the company.

Under the program, which is part of local authorities' latest measures to promote stable and healthy development of the real estate industry, the company will purchase second-hand residential properties through market-based methods.

"Purchasing second-hand properties will follow the principles of government guidance, market operation and voluntary participation," said Qian Zhe, deputy Communist Party chief and general manager of the company.

The trial period will last until the end of this year, said Qian during a press conference on Tuesday.

The program targets second-hand homes with a total price of up to 3 million yuan ($440,000) and a building area of less than 70 square meters, located within the city's ring expressway.

There is no age limit on the properties, but they must have clear ownership, be free of mortgages and seizures, and have no safety hazards.

The purchase price will be based on the market transaction price, involving an initial inquiry and evaluation followed by a review conducted by third-party professional agencies, with the final price to be determined through negotiation with the residents.

Residents must purchase a new commercial residential property within the administrative area of Guangzhou within 180 days after the transaction of their second-hand homes.

"The full amount from the sale of the old property will be held in a dedicated bank account and specifically used for the purchase of a new home, to help maintain transparency throughout the transaction," said Qian.

The program represents an innovative transaction model to stimulate the local real estate market, according to Qian.

"Old properties acquired will be prioritized for use as affordable housing, talent apartments and other purposes, serving the housing needs of new residents, especially young people, and supporting the relocation of residents involved in urban renewal projects," said Qian.