Home-buying policies overhauled in China's premier cities
China's leading cities—Beijing, Shanghai, Guangzhou, and Shenzhen—have revised their real estate policies, introducing various measures aimed at enhancing local property markets.
TroibNews 
On Monday, Beijing announced a relaxation of homebuying regulations aimed at revitalizing the city's property market, specifically by lowering the buying threshold for non-residents in the downtown area.
A circular released on Monday night revealed that non-Beijing residents can now purchase homes within the city's fifth ring road if they have paid social insurance or individual income tax in Beijing for at least three years, a reduction from the previous requirement of five years.
Effective Tuesday, the new policies will also eliminate housing purchase restrictions in Tongzhou District, which is home to the Beijing Municipal Administrative Center, aligning its homebuying rules with the city's overall property market policy.
Under these new guidelines, homebuyers will experience reduced financial strain, as the minimum down payment for individual commercial mortgages will decrease from 20 percent to 15 percent for first-time home purchases and from 30 percent to 20 percent for second homes.
Additionally, families with more than two children in Beijing will benefit from an increase in the housing provident fund loan limit by 400,000 yuan, as stated in the circular.
Beijing's announcement follows similar adjustments in real estate policies by other major Chinese cities, including Shanghai, Guangzhou, and Shenzhen.
In Guangzhou, located in southern China’s Guangdong Province, the restrictions on purchasing properties have been lifted as part of efforts to optimize the real estate market in this first-tier city.
Starting Monday, homebuyers in Guangzhou will face no qualifications for purchasing a home, and there will be no limits on the number of properties that families or individuals, regardless of their local household registration status, can buy, according to a circular from the municipal government.
In Shanghai, the minimum down payment for individual commercial mortgages will also be lowered to 15 percent for first-home purchases and from 35 percent to 25 percent for second homes, as stated in a circular issued on Sunday.
Commercial banks are expected to adjust existing mortgage rates to ease interest expenses for homebuyers, and specific locations within the city will see further relaxation of purchase qualifications. These adjustments will take effect on Tuesday.
Shenzhen, another city in Guangdong Province, announced measures on Sunday aimed at reducing down payment ratios and optimizing home purchase restrictions in designated districts.
Meanwhile, the six major national commercial banks in China have revealed plans to adjust mortgage rates for existing home loans in alignment with central bank policies designed to stabilize the property market.
Details regarding the adjustment of mortgage rates will be published on October 12, according to statements from the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China.
These adjustments will be implemented by October 31, 2024.
These latest measures come after a meeting of the Political Bureau of the Communist Party of China Central Committee, which emphasized the importance of reversing the downturn in the real estate market and stabilizing it.
Aarav Patel for TROIB News
A circular released on Monday night revealed that non-Beijing residents can now purchase homes within the city's fifth ring road if they have paid social insurance or individual income tax in Beijing for at least three years, a reduction from the previous requirement of five years.
Effective Tuesday, the new policies will also eliminate housing purchase restrictions in Tongzhou District, which is home to the Beijing Municipal Administrative Center, aligning its homebuying rules with the city's overall property market policy.
Under these new guidelines, homebuyers will experience reduced financial strain, as the minimum down payment for individual commercial mortgages will decrease from 20 percent to 15 percent for first-time home purchases and from 30 percent to 20 percent for second homes.
Additionally, families with more than two children in Beijing will benefit from an increase in the housing provident fund loan limit by 400,000 yuan, as stated in the circular.
Beijing's announcement follows similar adjustments in real estate policies by other major Chinese cities, including Shanghai, Guangzhou, and Shenzhen.
In Guangzhou, located in southern China’s Guangdong Province, the restrictions on purchasing properties have been lifted as part of efforts to optimize the real estate market in this first-tier city.
Starting Monday, homebuyers in Guangzhou will face no qualifications for purchasing a home, and there will be no limits on the number of properties that families or individuals, regardless of their local household registration status, can buy, according to a circular from the municipal government.
In Shanghai, the minimum down payment for individual commercial mortgages will also be lowered to 15 percent for first-home purchases and from 35 percent to 25 percent for second homes, as stated in a circular issued on Sunday.
Commercial banks are expected to adjust existing mortgage rates to ease interest expenses for homebuyers, and specific locations within the city will see further relaxation of purchase qualifications. These adjustments will take effect on Tuesday.
Shenzhen, another city in Guangdong Province, announced measures on Sunday aimed at reducing down payment ratios and optimizing home purchase restrictions in designated districts.
Meanwhile, the six major national commercial banks in China have revealed plans to adjust mortgage rates for existing home loans in alignment with central bank policies designed to stabilize the property market.
Details regarding the adjustment of mortgage rates will be published on October 12, according to statements from the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China.
These adjustments will be implemented by October 31, 2024.
These latest measures come after a meeting of the Political Bureau of the Communist Party of China Central Committee, which emphasized the importance of reversing the downturn in the real estate market and stabilizing it.
Aarav Patel for TROIB News
