SZ relaxes home purchase policies

Four city government agencies, including Shenzhen Municipal Housing and Construction Bureau and the Shenzhen Branch of the People’s Bank of China, on Sept. 29 jointly issued a notice that aimed at further optimizing the policies and measures regarding the local real estate market.

File photo

Effectively Oct. 1, the new policies and measures allow residents with Shenzhen hukou, or permanent residency, to buy up to two apartments in the city, while adult singles, including divorced individuals, can purchase one apartment. Local residents are allowed to purchase an additional apartment in Yantian, Bao’an (excluding the subdistricts of Xin’an and Xixiang), Longgang, Longhua, Pingshan and Guangming, as well as Dapeng New Area.

Families without Shenzhen hukou are restricted to purchasing only one apartment in the city, and those who want to buy an apartment in Futian, Luohu and Nanshan districts, as well as Xin’an and Xixiang subdistricts of Bao’an will have to produce proof of having paid personal income tax or social insurance in the city for a year prior to the purchase date. Previously, a three-year payment requirement was in place for these areas. The new policies specifiy no such requirement for apartments that are in other districts.

Non-hukou households with two or more minor children can purchase an additional housing unit beyond the usual restrictions.

The city authorities also announced an exemption from value-added tax for homeowners selling an apartment they have owned for two years or more, down from the previous five years. The change is expected to reduced transaction costs and boost market vitality.

Additionally, the minimum down payment for a second home is lowered to 20%, while it remains at 15% for the first home.

Under the new policies, real estate enterprises are now empowered to independently set sales prices according to market conditions, which is expected to help enhance market competitiveness and vitality.