Policy Update | City relaxes home mortgage policy

City relaxes home mortgage policy

Shenzhen has eased restrictions for homebuyers following the country’s central bank lifting real estate market curbs in early May, according to new measures announced by local authorities May 28.

Starting May 29, the minimum down payment ratio for individual housing loans was lowered from 30% to 20% for first homes and from 40% to 30% for second homes.

The urban skyline of Shenzhen. File photo

This adjustment, which will lower the financial threshold for homebuyers, also involves reductions in the lower limit of interest rates on home loans based on the corresponding tenor of the benchmark loan prime rate (LPR).

The mortgage rate floor for first-time homebuyers was decreased to 45 basis points below the corresponding tenor of LPR from the previous level of 10 basis points below. Meanwhile, the minimum mortgage rate for second homes was lowered to 5 basis points below the corresponding tenor of LPR from the earlier rate of 30 basis points above the tenor, as outlined by authorities.

China’s one-year LPR was 3.45%, and the five-year LPR, which is typically used as a benchmark for mortgage loans, stood at 3.95%, according to the People’s Bank of China’s monthly fixing May 20.

The Shenzhen Daily's report on the measures can be found at:

City relaxes home mortgage policy 深圳下调个人住房贷款最低首付款比例和利率下限

City eases housing purchase restrictions

In early May, Shenzhen relaxed home-buying restrictions in a bid to help boost the city’s real estate market.

The Shenzhen Municipal Housing and Construction Bureau issued a notification May 6, titled “Notice on Further Optimizing Real Estate Policies,” aiming at refining regulations concerning housing purchases. This move represents a pivotal step towards enhancing the real estate market by adjusting housing purchase restrictions in specific areas, modifying policies for enterprise purchases of residential properties, and streamlining the process for pre-owned housing transactions.

Under the notification, non-local residents and single adult individuals (including divorced individuals) are allowed to purchase one residential property in Shenzhen. For those buying in Yantian, Bao’an (excluding Xin’an and Xixiang subdistricts), Longgang, Longhua, Pingshan, Guangming, and Dapeng New Area, the requirement for the number of years of individual income tax and social security contributions has been reduced from three years to one year. For purchases in other regions, the three-year contribution requirement still applies.

The notification specifies that local families with two or more underage children are allowed to acquire an extra residential property in the aforementioned districts, while existing restrictions remain effective.

Moreover, the notice states that qualified enterprises meeting criteria such as operating for a minimum of one year, cumulatively paying 1 million yuan (US$138,700) in taxes in Shenzhen, and employing a workforce of at least 10 individuals, are permitted to purchase residential properties in the aforesaid areas to address employee housing needs.

The Shenzhen Daily's report on the notification can be found at:

City eases housing purchase restrictions 深圳分区优化住房限购政策

City eases restrictions on home buying

Shenzhen made major adjustments to home buying rules in early February in a bid to help boost home sales and stabilize the city’s real estate market.

According to a notice issued by the city’s housing authority Feb. 7, the residency duration requirement for residents with hukou (permanent residency permit) will be canceled and requirements for paying personal income tax and participating in social security for a certain period of time will also be removed.

A household that has at least one hukou holder can purchase up to two homes while a single adult with a hukou (including divorcees) can purchase one apartment.

Families without a hukou-holding member and single individuals (including divorcees) without hokou, who can provide proof of continuous payment of personal income tax or social security in the city for the previous three years, can each purchase one apartment.

The new policy is effective from the date of issuance.

The full report is available at:

City eases restrictions on home buying 深圳优化楼市限购