BEIJING, May 9 (Reuters) - China's eastern metropolis of

Hangzhou, among the country's most thriving cities, on Thursday

said it will lift all home purchase restrictions to shore up its

real estate market, raising the prospect of other cities

following suit.

As of May 9, Hangzhou's government will no longer vet the

eligibility of potential buyers, the city housing authority said

in a notice.

Hangzhou is capital of the wealthy Zhejiang province and

boasts some of China's most desirable and expensive real estate.

That led local authorities to impose home purchase curbs to

deter speculation.

Home demand has sagged across the country since 2021 as

buyer sentiment weakened significantly, chilled by a debt crisis

among property developers and a continued decline in prices.

Hangzhou is the first city to completely abolish purchase

restrictions after a meeting of top Communist Party leaders in

April called for measures to support the property sector, said

analyst Yan Yuejin at E-house China Research and Development

Institute.

The city's decision will be "very inspiring" for other

cities that still have curbs on home purchases, Yan said.

The city of 12.5 million people is China's answer to Silicon

Valley, being home to technology majors including Alibaba Group ( BABA )

and NetEase ( NTES ). It has been a magnet for tech

talent from all over China, further elevating housing demand.

The policy change is to meet that demand and promote the

healthy development of the real estate market, the housing

authority said.

Late last month, the southwestern city of Chengdu, home to

21.4 million residents, also eased home-buying limits.