Property Policy Update
Province/
Status Date ministry City Related Policy Details Impact 29 October Tianjin HPR An official at the Tianjin DRC denied a rumour that the The local property market is reported to be 2020 city would relax HPR by allowing home purchases under pressure due to low demand. A certain Unconfirmed without a local hukou. degree of policy easing could be necessary to support the local economy. 23 October Hubei Wuhan Home Launched a liquidity-based risk management system for Home accumulation fund rules will be adjusted 2020 accumulation home accumulation fund management. more flexibly and frequently as a lever to control fund When the liquidity of home accumulation fund is ample the real estate market. (loan balance drops below 85% of total pool), the loan Confirmed and withdrawal policy will be relaxed; and when the ratio exceeds 85%, a three-level alert system will be applied to adjust the loan and withdrawal policy. The ratio stood at 89% on 15 October. 23 October MOHURD General Wang Menghui, Minister of MOHURD, stated that the The room for near-term policy tightening is 2020 real estate market had maintained steady and healthy limited as regulators shift focus from controlling Confirmed development, with the targets of stabilising land and demand to increasing supply. home prices as well as expectation “basically achieved" in the 13th FYP period. 23 October Jiangsu Nanjing Rental housing Orders to implement the record system for rental Increases rental housing supply and cultivates 2020 housing, with tax exemption or reduction for individual the market. and enterprise tenants. Companies and organisations Confirmed that rent homes or properties converted from commercial or industrial units to rental housing firms can also enjoy preferential property tax. 22 October Guangdong Shenzhen Housing loan Large state-owned and joint-stock banks have Reduces property speculation 2020 reportedly tightened the issuance of individual loans Unconfirmed pledged on properties. These loans are supposed to be used for consumption and businesses, but some were diverted into the real estate market.
1
Province/
Status Date ministry City Related Policy Details Impact 21 October PBOC Financing Pan Gongsheng, deputy governor at the PBOC, said the Real estate financing will be monitored and 2020 central bank would focus on improving the macro controlled with more standardised processes prudential monitoring, evaluating, and alerting systems and requirements. Aggressive debt-fueled Confirmed in key areas including real estate financing. growth models are becoming much less viable, requiring developers to create new business models. 21 October MNR Land supply Drafted tract development rules for public comment, Limited impact on housing market as it mainly 2020 which forbids approvals in any of the following cases: applies to industrial and commercial land. But it The plan includes permanent farmland. could increase the supply of rental housing or The city or county has a large amount of land that is residential places, e.g. employee dorms, as part Confirmed approved but not supplied or idled. of industrial parks. The land utilisation rate of development zones or new urban areas of all types is low. Tract development that fails to meet the annual implementation targets for two consecutive years. 21 October Anhui Hefei Rental housing Issued a number of measures to support converting Increases rental housing supply. 2020 commercial, industrial, R&D and educational buildings, Confirmed as well as entire residential blocks into rental housing.
21 October Beijing Policy The local MOHURD announced the launch of a 3-4 Enforces existing regulations and aims to 2020 execution month-long joint investigation, partnering with local maintain market order. Confirmed branches of PBOC, CBIRC, and Public Security Bureau, into the execution of HPR, presale funds administration, and the filing of home renting contracts. 20 October Guangdong Housing quality The provincial MOHURD stipulates that property Seeks to maintain build quality as developers 2020 projects with leaks, cracks, or other problems unsolved step up construction speed. Confirmed should not be accepted for completion.
19 October Guangdong Shenzhen General The local MOHURD pledges to deepen housing reforms, The city is very likely to follow the Singapore- 2020 including the social housing system, construction model in which the majority of the population Confirmed project approval system, and construction project live in social housing as a way to address tendering. affordability. 16 October Ningxia Yinchuan Presales The local MOHURD issued a new rule that orders Aims to strengthen the management of presales 2020 developers to support home buyers in transferring funds and ensure the proceeds are used in the Confirmed presale funds into the custody accounts directly and construction of property projects, instead of prohibits developers from using those funds outside the other purposes. specific project.
2
Province/
Status Date ministry City Related Policy Details Impact 16 October Guangxi Liuzhou Home Capped the quota of home accumulation fund loans at 6 Tweaks home accumulation fund loan lending in 2020 accumulation times the account balance and lowered the maximum a bid to mitigate tight liquidity. fund Confirmed quota from 600,000 yuan to 400,000 yuan. Removed the restriction that banned loan applications for purchasing a second-hand home over 15 years old. 15 October Jiangsu Wuxi Home Increased the interest rates of home accumulation fund Differentiates home accumulation fund policies 2020 accumulation loans for second-home purchase to 1.1x the rates for to prioritise first home buyers. Confirmed fund first-home purchases, ie 3.25% x 1.1= 3.575%.
14 October PBOC Developer Peng Lifeng, deputy director of the PBOC’s financial Some developers cutting prices to generate 2020 financing market department, said at the central bank’s Q3 cashflow, leading buyers to take a wait and see financial statistics press conference that the funds view. Impact expected to be highly tracking and financing administration rules targeted at differentiated by market. Confirmed certain key developers have launched, and that they would work with MOHURD and other departments to monitor and evaluate the effectiveness, improve the rules, so as to steadily expand the scope of such rules. 11 October Anhui Hefei Social/ rental The local MOHURD and branch of China Construction Increases rental housing supply to meet the 2020 housing Bank pledged to work together to raise 80,000 units of rising demand from new population inflows Confirmed policy rental housing in three years, with the purpose to attracted by the development of high-tech meet the temporary demand from new residents, industries. including non-hukou residents and college graduates. 11 October Guangdong Shenzhen Land approval The local government is granted of the power to Increases land supply for housing, other 2020 approve land conversion from qualified rural lands to properties, transport, factories, commerce. construction lands as part of pilot reforms in the city. Other pilot cities eg Shanghai are getting similar Confirmed powers. Lead city clusters will grow faster, leading urbanisation and economic growth. 11 October Hunan Changsha Land bids, Adjusted the proportion of self-held rental housing in Increases rental housing supply. 2020 rental housing land bids to 100% of the GFA once the price cap is Confirmed reached.
9 October Jiangsu Xuzhou Price control The local MOHURD and PBOC branch jointly stipulated Aims to contain Xuzhou home price increases, 2020 that the record prices of commodity housing should not which rose 11.6% yoy as of August according to Confirmed be adjusted within one year, and developers are banned NBS data. from forcing home buyers to choose refurbishing services.
3
Province/
Status Date ministry City Related Policy Details Impact 9 October Zhejiang Shaoxing Price control The local MOHURD stipulated that the sale prices of Increases land and home supply while 2020 new property projects should be set based on prices of controlling home prices. Mainly aims to cool similar properties in the same area or land prices and down the local property market which saw new construction costs taken into consideration; and prices home prices rising 13% yoy according to 3rd of newly introduced units should not exceed the prices party data. Confirmed on record. The city also looks to establish a land supply mechanism that links up land prices and home prices, with the purpose to increase land supply and strictly control price premiums and price growth. 9 October Jiangsu Suzhou Finished The overall furnishing price should be at least 5% of the Limited impact. Mainly aims to regulate the 2029 housing property price or 1,000 yuan per m2. finished housing market and guarantee property Confirmed quality.
30 September Ningxia Yinchuan Various Home buyers without a hukou in the province are only Controls home demand, increases home and 2020 allowed to purchase one home in the city land supply, guarantees demand from difficult Properties that newly obtain presale approvals need to groups. be held for two years before next resale Down-payment ratio should be at least 20% for first- This follows other cities that were summoned by home purchases and 40% for second-home purchases; the MOHURD to cool down the overheated mortgage loans are suspended for the 3rd or more home property market. New home price growth in the purchases city were ranked the highest for 3 months Residential land supply will be increased previously in a row among the 70 large and mid- Confirmed Developers should list all properties for sales within 10 sized cities in the NBS’s monthly survey. days after obtaining the presales approval; prices should not exceed the registered prices Pledges to increase home supply, lower requirements for, and expand the coverage of, the existing public rental housing and affordable housing, step up shantytown redevelopment and urban renovation, meet the residential demand from low-income groups, new employees, and migrant workers, as well as plan apartment for talent through various measures 29 September Hainan General Liu Cigui, provincial party secretary of Hainan province, HPR is expected to remain in the province so as 2020 spoke in public recently that the province’s efforts in to cap home price growth as the province aims Unconfirmed maintaining home prices at 17,000 yuan/m2 such as in to attract more investment and population for Haikou, its capital, help create conditions for more the local industries and economic development. enterprises and talent to come to the island.
4
Province/
Status Date ministry City Related Policy Details Impact 29 September Anhui Hefei Talent Announced a set of policies to support key industries to Mainly aims to support local industries. Limited 2020 attraction attract talent: impact in the short term but potentially could High-level talent joining enterprises of key industries support local home demand in the long run if can stay in talent apartment for free for 3 years, or get population inflows can be maintained. an annual rental subsidy ranging from 36,000 to 60,000 yuan for 3 years; such talent can also get a 100,000- Confirmed 600,000 yuan subsidy if they buy a home or enjoy an expanded quota of home accumulation fund loans. Fresh graduates who newly join enterprises of key industries in the city can stay in state-owned rental housing for free for 3 years if they don’t own a property in the city, or get an annual rental subsidy ranging from 15,000 to 36,000 yuan for 3 years. 28 September Chengdu, Home Established a green channel to prioritise the handling of Eases administrative procedures for home 2020 Chongqing accumulation integrated home accumulation fund businesses across accumulation fund uses in the dual-city cluster, a fund Confirmed the Chengdu-Chongqing city cluster. step that supports population inflows and movement in the region which potentially would increase home demand. 28 September Fujian Fuzhou Rental housing, Stipulates that the benchmark land price for rental Aims to lower housing rent/ prices from the land 2020 land price housing should be set at half price of ordinary end. residential lands. The benchmark price of residential land should be appropriately rounded up and maintained basically Confirmed steady, while the price for commercial lands is adjusted down by 5%. The benchmark land prices for public services projects, including education, healthcare, as well as cultural and sports facilities, are adjusted down by around 20%. 28 September Guangdong Dongguan Social housing Released the administration guideline on talent housing, Increases social housing supply and controls rent 2020 public rental housing, shared-equity housing, and other growth of talent housing. policy rental housing, which orders to allocate 10%-30% Confirmed of GFA in future land offerings or urban renewal projects for social housing; the rent for talent housing should be capped at 60% of average market levels. 28 September Hebei Tangshan Various Issued a circular to strengthen property market control: Cracks down property speculation and increases 2020 Down-payment ratio for second-home purchases land and home supply. Confirmed should be at least 50% Individual housing loans are suspended for a 3rd or Ranked high in home price growth in recent more home purchases months, the city was also summoned by the 5
Province/
Status Date ministry City Related Policy Details Impact Land bids will be conducted with caps on property sales MOHURD with a few other cities, which also laid prices, which will be included in land transfer contracts out their respective plans to stabilise the local Supply of residential land will be increased and property markets. accelerated, and will be adjusted according to the demand structure of different groups Property projects that meet presale conditions should apply for presales approval within 30 days, and be fully listed for public sales within 10 days after getting the approval Developers with hoarding and price speculation activities will be blacklisted 27 September Guangdong Dongguan General Planned 9 towns in the southern part of the city to Builds closer links between Dongguan and 2020 develop a demonstrative district with deep integration Shenzhen and effectively helps the latter to Confirmed with Shenzhen, the areas of integration including expand into surrounding areas. Such expansion transportation and high-end industries. could create new home demand in the long run. 25 September CPPCC National Rental housing The CPPCC held online meeting chaired by Wang Yang, More supportive measures might be piloted and 2020 chairman of CPPCC, who urges to develop rental stepped up to bolster the development of rental housing market with great efforts, push forward with housing market. Confirmed the establishment of a housing system that is supplied by multiple parties, guaranteed by various channels, and supported by both purchasing and renting. 25 September 20 cities Home Capital cities of Hubei, Hunan, Anhui, and Jiangxi Increases home accumulation fund use in non- 2020 including accumulation provinces and 16 other cities signed a joint agreement local property purchases which could support Wuhan, fund seeking to reinforce cooperation on home accumulation home demand. Confirmed Changsha, fund administration and enable non-local recognition Hefei, and and use of the fund. Nanchang 25 September Shaanxi Xi’an Public rental Orders that commodity housing projects built on newly Increases rental housing supply, the land cost of 2020 housing offered lands should allocate at least 15% of GFA for which, despite limited proportion, is likely to be Confirmed public rental housing, of which 5% need to be passed onto the remaining commodity housing transferred to the government for free, and the other units. 10% will be repurchased by the government. 25 September NDRC National General Approved by the State Council, the NDRC released Implements current policy that pledges not use 2020 opinions on promoting the healthy development of real estate as short-term economic stimulus. characteristic towns, ordering to reasonably control the Confirmed proportion of residential land in construction land based on sufficient study on population scale, strictly prevent characteristic towns from becoming real estate projects. Those projects that purely carry out large-scale real 6
Province/
Status Date ministry City Related Policy Details Impact estate development in the name of characteristic towns should be eliminated or removed.
24 September Guangdong Shenzhen Social housing The local planning and natural resources bureau issued Minimal impact. Mainly increases low-cost 2020 the 2020 urban renewal and land development plan, home supply for the young and low-income Confirmed aiming to newly build nearly 30,000 units of talent groups. housing, affordable housing, and public rental housing. 24 September Sichuan Chengdu Presales The finance bureau of Chengdu Hi-Tech Industrial Cracks down property hoarding and other 2020 Development Zone announced that it is investigating speculative activities by developers. several projects for holding back new home supply after Confirmed being ready to launch; one of them is said to be restricted from getting new loans from financial institutions in the zone. 23 September Shanghai Hukou, talent Eased hukou requirements to allow fresh graduates of Potentially increases home demand in the short 2020 attraction the top four local universities to apply for a hukou term. Confirmed directly.
23 September Guangdong Dongguan Home Lowered the maximum quota for home accumulation Aims to cap the use of home accumulation funds 2020 accumulation fund loans from 1.2mn yuan to 900,000 yuan for first- in order to balance fund inflows and outflows. fund home purchases and from 800,000 yuan to 500,000 Effectively would increase financing costs for Confirmed yuan for second-home purchases. Withdrawal of home both genuine and speculative home buyers accumulation funds for second-hand home purchases hence reduce demand. can only be made six months after obtaining the ownership certificate. 23 September Jilin Changchun Various Raised the minimum down-payment ratio of from 20% Aims to slow price growth, which increased 7% 2020 to 30% for first-home purchases and from 30% to 40% yoy as of August. The city was also summoned for second-home purchases along with 5 other cities by the MOHUIRD urging Suspended housing loan issuance for third-home them to stabilise property market. purchases Confirmed Home prices of new presales should not exceed that of surrounding properties of same types or those in previous presales of the same project Plans to increase residential land supply by more than 10% yoy and accelerate the development of the rental housing market.
7
Province/
Status Date ministry City Related Policy Details Impact 18 September Guangdong Guangzhou Talent Reported to relax HPR in Nanshan district by allowing Ensures a measure of genuine demand from 2020 local hukou residents employed in the district and with qualified talent working in the city. a bachelor’s degree or above or medium-grade professional certificate to purchase a home in the Unconfirmed district no matter if they have a home in central districts of Guangzhou or not; qualified talent and their direct relatives without a Guangzhou hukou are also allowed to purchase a property in the district. 17 September Guangdong Shenzhen Price Plans to set up a price guidance mechanism for existing Strengthens control over secondary home 2020 homes, which would publish home transaction prices on market. a regular basis and guide transaction prices in areas or projects with high volatility in prices. Relevant Confirmed developers, property agencies and valuation companies, and home renting companies would be investigated, alerted, or suspended from conducting businesses if market violations are found. 17 September Hainan Haikou Affordable Plans to build 18,000 units of affordable housing in Increases low-cost housing supply for certain 2020 housing three years by 2022 to house teachers, medical workers groups. at the grassroots level, and other qualified households Confirmed and talent. The averages price is capped at 10 times the urban household income or 60% of the average sales prices of commodity housing in the previous year in the city. 16 September CBIRC Property Strengthens supervision over small-loan firms, ordering Cracks down illegal financing means for property 2020 financing them to monitor the usage of small loans and prohibit speculation. Confirmed such loans from being diverted into the property market. 16 September Henan Zhengzhou Talent Offers 0.5-3mn yuan of subsidy for qualified high-level Encourages population inflow. Limited increase 2020 attraction talent to purchase their first property; offers 20,000- in demand in the short term. Confirmed 100,000 yuan of subsidy for qualified postgraduates and graduates to buy a first home. 15 September NBS Prices In response to an analysis that property prices would Home prices will adjust in some cities, but hard 2020 have a “hard landing”, the NBS said the real estate landing in major cities is unlikely with the sector has yet to return to the normal levels in terms of economy recovering, lending rates fairly low and Confirmed both investment and sales, and saw a foundation for the urban unemployment contained. property market to maintain overall stability in the long run. A limited number of developers will be under pressure to offer discounts to improve their debt
8
Province/
Status Date ministry City Related Policy Details Impact situations as required by regulators. We don’t expect this to start a cascadd.
15 September Fujian Presales Strengthens supervision over presale funds by setting Tightens control over developers’ presales funds 2020 up custody accounts, where the amount and usage will in order to improve the utilisation of financial Confirmed be monitored and controlled in accordance to project resources. progress, in a bid to prevent increases of, or reduce, unfinished buildings. 14 September Sichuan Chengdu Various Issued a circular to maintain the steady and healthy Increases home supply, especially for low- 2020 development of its local property market. income groups and genuine demand, reduces prioritise residential land supply for social housing, the speculation. proportion of residential land should be at least 60% of construction land supply, and at least 70% in areas with tight supply-demand balance Confirmed increase the proportion of households in shantytown redevelopment projects or those do not own a property in the lottery for property sales to 20% and 60% respectively from 10% and 50%. stipulate property resales can be LVAT-free only if property is held for 5 years, up from 2 years previously 14 September PBOC General Pan Gongsheng, deputy chairman of the PBOC and The new rules could be first piloted among key 2020 governor of the SAFE, explained that the recent debt developers and extended to other developers, control and financing rules for some key developers are who will be given a grace period for the a main part for establishing the long-term mechanism implementation in order to reduce immediate Confirmed for the real estate market, and a key part of the financial impact. prudent administration. The purpose is to increase the marketisation, standardisation, and transparency of the sector. 11 September Guangdong Dongguan Presales The local MOHRUD issues a notice to investigate and Enforces existing regulation and cracks down 2020 crack down market violations of some property agencies speculation. Confirmed and individuals that resell home purchase quota for “hundreds of thousands” yuan of profit. 11 September Jiangsu Nanjing Land Affiliates in the same group may not bid for the same Cracks down manipulation in land bids and cools 2020 land parcel and as a group may win only a single land down artificial competitiveness in land market. Confirmed parcel per batch of land offerings.
9
Province/
Status Date ministry City Related Policy Details Impact 11 September Zhejiang Hangzhou Rental housing Offers subsidy up to 1,000 yuan/m2 of subsidy for Increases low-cost rental housing supply. 2020 qualified rental housing construction and conversion Confirmed projects.
11 September Jiangsu Changzhou Various Pledges to increase land supply and advance Increases home supply, reduces speculation, 2020 construction while maintaining support for genuine demand Tightens supervision of developers' land purchase funds, cancels supportive measures aimed at countering virus impact Orders developers to launch presales within 10 days Confirmed after obtaining approval Home owners may only resell their properties after having the ownership certificate for 4 years The down-payment ratio should be at least 60% if buyers already own a property with an outstanding mortgage 10 September Guangdong Shenzhen Regulation Plans to construct a marital status checking system for Implements new HPR to close loopholes that 2020 commercial banks in approving mortgage loans. would otherwise lead to property speculation Confirmed via “fake divorces”
8 September Hebei Tangshan Home Plans to establish an information and data sharing Aims to expand the use of home accumulation 2020 accumulation mechanism to improve the exchange and checking of funds/ loans in home purchases. fund hukou, marital status, social security, home Confirmed transactions, property ownership, credit, and mortgage information, in a bid to support the contribution, withdrawal, and loan application of home accumulation funds. 7 September Beijing Rental housing The local MOHURD offers 30,000-50,000 yuan per unit Increases rental housing supply. 2020 of newly built rental housing on collective land, and Confirmed 10,000-20,000 yuan per unit of rental housing converted from existing properties. 7 September MOHURD Rental housing Issued draft rental housing regulation for public Increases rental housing supply and demand, 2020 comment until 8 October, the first national regulation of aims to improve the rent-purchase structure in its kind, laying out a set of measures to support rental the domestic property market. marketing including: Confirmed • ordering local governments above the city-level to include new rental housing into residential housing plans, e.g. by increasing land supplies or converting non- residential buildings 10
Province/
Status Date ministry City Related Policy Details Impact • encouraging institutions and individuals to lease qualified units and ink long-term rental agreement, e.g. 3 years or longer, with tenant; local governments should provide incentive policies to support such long-term contracts • supporting financing products and services such as REITs, corporate bonds, as well as ABS for rental housing; rental housing enterprises can pledge the right of rental income and enjoy preferential financial, taxing, and land policies •sets out to establish a pricing guidance system in order to monitor and stabilise rent levels and prevent rental surges • kitchens and balconies are prohibited from being rented as separate units • property agencies are banned from charging commissions from contract renewals • rules regarding home renting loans are also tightened in order to avoid abuse of such financing tools by rental housing firms 6 September Liaoning Shenyang Various Orders to strictly control price premiums in residential Cools down land market and cracks down 2020 land transfers, strengthen full-process supervision in property speculation. Confirmed real estate development, increase the down-payment ratio for a second home to 50%, and extend the holding period before VAT-free resales from 2 years to 5 years. 4 September Zhejiang Hangzhou HPR, genuine Stipulates that parents who obtain a hukou as Closes property policy loophole and increases 2020 demand dependents of their children in Hangzhou may purchase support for genuine demand. a home only 3 years after getting the hukou. Confirmed Eases the criteria of households that do not own a property by including qualified unmarried individuals above 30, and qualified individuals that have divorced for more than 3 years. 3 September Zhejiang Hangzhou Public rental Eases eligibility for public rental housing by lifting the Expands coverage of applicants for public rental 2020 housing household annual income per capita from 61,172 yuan housing. Confirmed to 66,068 yuan.
11
Province/
Status Date ministry City Related Policy Details Impact 3 September Guangdong Shenzhen Rental housing Offers up to 1,500 yuan/m2 of subsidy to developers of Increases rental housing supply and reduces 2020 commodity housing projects if they lease the properties commodity housing inventories. Most impact on Confirmed for certain period instead of selling, with rental lower end segments. increases capped by government. 3 September Chongqing Down-payment Allows qualified home buyers to enjoy 20% down- Likely to increase short-term demand 2020 ratio payment ratio if they purchase their first home at the Confirmed property fair in Liangjiang New district during 28 August and 31 October 3 September Ningxia Yinchuan Stabilisation Mayor Yang Yujing discussed the 14th Five Year plan for Little immediate impact; mainly moves towards 2020 land and property. long-term supply-demand rebalancing - align 5-year land supply plan with population, industry distribution, and space layout Yingchuan, located in NW China, recorded 2% - set mid-long-term target, yearly objectives, and mom increase in property prices in July, the targeted policies and implementation for the property fastest among 70 large- and mid-sized cities for sector with requirements in reasonable prices, balanced the 3rd consecutive month. supply and demand, various supporting measures, controllable risks, and stable expectation -set up market monitoring system in a bid to alert and Confirmed guide the market in case of irregularities in a timely MOHURD summoned cities including Yingchuan manner to a meeting. The other attendees including - departments should carry out joint-investigations and Shenyang, Changchun, Chengdu, Tangshan, and crackdowns on violations of market rules Changzhou are likely to introduce measures to - supervision on presales funds should be strengthened stabilise their local property markets. and prudent financing administration should be reinforced - urban renovation and shantytown redevelopment work needs to be advanced to meet home demand from new residents and young people 2 September Beijing Regulation The Xicheng district housing authority urges property Aims to prevent property speculation and price 2020 agencies not to over-interpret or speculate regarding volatility. Confirmed environmental, educational, and medical resources, as well as hukou policies, in marketing information of all sales channels. 2 September Guangdong Guangzhou Rental housing The local real estate leasing association issued a circular Prevent financial risks in the rental housing 2020 looking to alert rental housing participants of risks market, particularly in case of bankruptcies/ associated with home leasing enterprises, carefully runaways of property leasing firms. Confirmed choose property leasing enterprises and rent payment methods, prevent “rental loans” risks, check property information and status, using standard contract 12
Province/
Status Date ministry City Related Policy Details Impact templates, and particularly precaution irregularities such as those that rent at high but lease at low prices, or rent monthly but lease quarterly or yearly.
1 September MOHURD Policy Pledges to better interpret real estate policies for the Aims to increase transparency in policy setting 2020 interpretation, steady and healthy development of the property and monitoring for better controls of the market market. property market. monitoring, home Information disclosures will be strengthened in the accumulation areas of market supervision and regulation, as well as fund housing security measures, in a bid to maintain market Confirmed order of property development and stabilise price development and expectation.
The implementation of temporary supportive home accumulation fund measures should be monitored so as to guide local governments to better implement such policies and evaluate the effectiveness. 31 August Shaanxi Xi’an Presales The local MOHURD drafted a regulation on the Improves presales regulation and increases 2020 information disclosure for property presale, requiring transparency in order to reduce room for Confirmed developers to list risks and uncertainties such as speculation. pollution and school access. 31 August MOHURD Shenyang, General Summoned mayors and local MOHURD officials to a The cities involved in the meeting, most of 2020 Changchun, meeting on improving and implementing real estate which are in the major city clusters or regions Chengdu, controls, taking targeted measures, increasing land and for national development strategies, will need to Confirmed Yinchuan, housing supply, supporting reasonable genuine demand, proactively monitor their land and property Tanghan, firmly cracking speculation, and strengthening market markets and take measures to effectively Changzhou monitoring and evaluation. stabilise price development and expectation. 30 August Jiangsu Wuxi Various Tightened home purchase restrictions: Medium impact, especially on investment 2020 If one purchases a property within two years after demand and second-home segments. his/her divorce, the number of units owned by his/her household before divorce shall be counted as his/her Other cities likely to follow suit in withdrawing property ownerships temporary COVID-19 developer relief measures Confirmed Home owners should hold a property for at least five years, up from two years previously, before they can resell it free of LVAT The minimum down-payment ratio for purchasing a second home is increased from 40% to 60% if the mortgage for the first home is yet to be paid up 13
Province/
Status Date ministry City Related Policy Details Impact Increase residential land supply by 50ha this year vs. 2019 Suspend developer relief measures including eased requirements for presales permits and funds custody Financial regulators are required to strictly investigate sources for home purchase funds, monitor flows of consumption loans and business loans, and prohibit such funds from being diverted to the property market Increases rental housing supply and encourages conversion of vacant and less-utilised commercial and office buildings into rental housing 28 August Guangdong Shenzhen Social housing Zhang Xuefan, director at the local MOHURD, pledges to The city had already pledged early in 2018 that 2020 learn from Singapore in the area of social housing, and housing supply would follow a 2:2:2:4 ratio in to aim for a 60:40 ratio between social housing and talent housing, public rental housing, affordable commodity housing in an unspecified timeframe. housing, and commodity housing (ie 60:40 if the first 3 categories are combined into social Confirmed housing).
But such plans need time to come into fruition as well as long-term land planning and prudent price monitoring and controlling. 27 August Hainan Sales Cracked down and punished 13 developers, Enforces existing regulation and clamps down 2020 intermediaries, and individuals for evading sales speculation as the province plays down the role Confirmed restrictions and other violations in property sales. of real estate in its Free Trade Port development.
26 August Jilin Hukou Issued opinions on hukou reforms which significantly As a province with net outflows in population, 2020 eased hukou restrictions: hukou relaxes could accelerate population Non-hukou residents can apply for a hukou if they have movement from lower-tiered cities to upper- a legal and stable place to live, including rented tiered ones, such as Changchun, its capital. properties; the time requirement of social security for such applicants is also removed Confirmed Applicants are allowed to apply for a hukou if their spouse, child, or parents already have a hukou; the age restriction is also removed for such applicants Qualified talent such as college or vocational school graduates, returned students from overseas, or skilled workers, can apply for a hukou without a stable job or residential place
14
Province/
Status Date ministry City Related Policy Details Impact Business owners and employees of private enterprises or individual businesses can apply for a hukou independent of tax payment or social security history
23 August Jiangsu Wuxi Shared-equity Published provisional guideline for the administration of Aims to increase affordable home supply for the 2020 housing shared-equity housing, which set the upper limit on the low-medium-income households. Confirmed GFA of different unit types and the criteria for the qualified applicants of each type of such housing. 23 August MOHURD, PBOC Developer Summoned key developers to a discussion meeting The meeting didn’t give details on the financing 2020 financing looking to implement long-term mechanism on property rules despite rumours of “three red lines”. controls. Rules regarding funds monitoring and Developers with higher debt ratios are likely to financing management are said to be set for key find it harder to obtain loans or raise funds by developers without further details. debt issues, which would enable large The meeting stressed market-oriented, rules-based, and developers that are financially better positioned Confirmed transparent financing rules could provide developers to further consolidate market. with steady expectation for financial policies, help them appropriately arrange business operations and financing activities, strengthen risk-resistance capability, and can facilitate risk resolving in the real estate sector hence maintain long-term steadiness. 21 August Jilin Changchun Presales Ordered that the delivery of properties should be within Aims to crack down property or land hoarding 2020 two years since signing the contract. and accelerate home supply. Developers will be charged for an inactivity fee worth 20% of the land transfer payment if construction Confirmed doesn’t start within one year after the land transfer; the use right of a land will be returned free of charge if construction doesn’t start in two years after the land transfer. 20 August Yangtze River Home Jiangsu, Zhejiang, and Anhui provinces and Shanghai The home accumulation fund systems in the 2020 Delta accumulation municipality jointly signed a frame contract on the Yangtze River Delta would be integrated to ease fund integration of home accumulation funds. the contribution and withdrawals across cities in Confirmed the region, so as to facilitate the movement of population and potentially support inflows and home demand. 20 August Jiangsu Nanjing, Land supply The provincial MNR orders to reinforce land supply Comes after Vice Premier Han Zheng’s meeting 2020 Wuxi, Suzhou monitoring and evaluation in Nanjing, Wuxi, and with relevant ministries and certain cities calling Confirmed Suzhou. Information regarding land supply and them to put more efforts on land supply transactions should be announced in a timely manner. management. Expect more cities to follow suit,
15
Province/
Status Date ministry City Related Policy Details Impact The structure of land supplies should optimised and with those have higher price increase pressures evenly distributed. to increase land supply.
19 August PBOC, MOHURD Developer Reportedly have summoned some property developers If confirmed, developers, including those big 2020 financing on new financing rules. The supervision authorities are ones, could be restricted from taking more reported to tighten corporate financing channels for leverage as much as in H1, which could prompt developers, and set restrictions on trust financing, asset them to reduce land purchases and cut sales management products and overseas financing, in order prices in order to maintain/ recoup funds. But to control the growth of interest-bearing debt of smaller developers and those with worse property developers and set "three red lines": financial conditions will get harsher curbs, which could accelerate market consolidation. Red line 1: The debt-asset ratio after excluding presales receipts is greater than 70% Unconfirmed Red line 2: The debt-equity ratio is greater than 100% Red line 3: The cash to short-term debt ratio is less than 100%
The annual growth rate of interest-bearing liabilities scale will be capped at 15% for developers that cross no red lines, with a 5bp reduction by crossing each red line. If all the three red lines are crossed, the scale of interest-bearing liabilities will be capped at the level of June 2019 and property developers would not be allowed to take on more leverage. 19 August Shaanxi Xianyang Price cap, Issued an implementation plan for property market Follows the “one city one policy” call from 2020 inventory controls, capping the annual growth of average new policymakers. Other cities may come up with home prices at +/- 10% in the main districts and at +/- their own targets. Confirmed 25% in counties from 2020 to 2022, during which the property inventory should be between 6-18 months of sales in the main districts. 18 August Shaanxi Xi’an Housing supply Municipal MOHURD expects housing supply to maintain Housing and land supplies are likely to increase 2020 growth in H2 and calls households with genuine in order to stabilise peoples’ expectation. Confirmed demand not to panic buy.
18 August Jiangsu Nanjing Land bids Replaced the bid for talent housing GFA with a lottery Regulates land bids which could reduce 2020 when the price cap is reached in a recent land offering. competition among developers. Confirmed Meanwhile, the qualifications, deposit requirements, and funds checks for participating developers are 16
Province/
Status Date ministry City Related Policy Details Impact tightened, and the number of land bids per each developer is limited.
18 August Hainan Home Increased the maximum quota for the home Encourages the use of home accumulation fund 2020 accumulation accumulation fund loans from 700,000 yuan to 1mn loans for purchasing a new home. Mostly likely fund yuan, and stipulated that, to qualify for the maximum to increase home purchases from households quota, both spouses have to contribute to their own with genuine demand and talent from other accumulation fund in the province for at least six provinces. months and the funds should be spent on purchasing a Confirmed new home. Applicants that do not own a Hainan hukou are also allowed to apply for home accumulation fund loans if they contribute the funds in other provinces. The minimum down-payment ratio of home accumulation fund loans for second-home purchases is increased to 40%. 13 August Guangdong Guangzhou Hukou Working on a draft regulation to improve business Shortens time of stay for hukou applications, 2020 climate, which looks to establish a point-based hukou eases movement of population, potentially Confirmed system that would also take into account applicants’ increases population inflows and home demand. stay/ employment in cities across the Pearl River Delta and Yangtze River Delta regions. 12 August Five major state- National LPR ICBC, CCB, ABC, BOC, and PSBC announced would Implements the conversion as scheduled, which 2020 owned banks convert the existing fixed-rate individual mortgage rates is due to complete by 31 August. Confirmed to be LPR-based from 25 August, unless borrowers give instructions to keep using the fixed rates. 12 August Banking Real estate The China Banking Association pointed out in the China Banks can continue extending real estate loans, 2020 association financing Listed Banks Analysis Report 2020 that the but the increase should be no faster than loans Confirmed concentration ratio of bank lending in the real estate to other sectors. Big developers should be fine. sector should be effectively controlled to free up credit support for national strategic areas. 11 August Zhejiang Ningbo Regulation The local branches of MOHURD, SAMR, PBOC, and Largely symbolic; some short-term reduction of 2020 CBIRC jointly announced three-month rectification dodgy activities. campaign from August to October over violations by developers and intermediaries, those including Confirmed unqualified sales, illegal collection of deposit funds, extra fees, bundled sales, among others. The punishments will include written warnings, public notification, inclusion into the list of enterprises with 17
Province/
Status Date ministry City Related Policy Details Impact serious illegal and dishonest acts, suspension for online registration of transactions, or ban for operation.
11 August NPCSC National Deed tax The NPCSC passed the Deed Tax Law which will come No impact in the short term. But the preferential 2020 into effect from September next year. The SAT stated tax rates could increasingly become a lever for that the new law, which maintains the same deed tax local regulators to tweak property policies, e.g. rates (3-5%) as in the existing provisional regulation, will prioritising talent or genuine demand. not affect the preferential deed tax rates, effectively at Confirmed 1-2% for qualified groups, at the local levels. Cities typically have 3% deed rates for normal housing. They could increase it to 4% or 5% for luxury housing or second/third homes. It would likely need MOHURD prodding for this to happen. 11 August Guangdong Guangzhou Talent The Baiyun district eased the qualification criteria for Expands talent inflows and increase potential 2020 attraction highly-educated talent, and allowed such talent to home demand a bit. Confirmed purchase a property provided that they have worked or established a start-up in the district in the past six months. 10 August Guangdong Shenzhen Rental housing Introduced the first batch of stable-rent housing Minimal impact in the short term. Increases 2020 totalling 172 units, ranging from 31m2 to 86m2 GFA, rental housing supply and helps stablilise rental with rent adjustment limited to +/-5% each year. prices. Confirmed Tenants are allowed to withdraw 65% of the monthly home accumulation fund contribution amount to pay the rent. 6 August 2020 PBOC Monetary Reiterated that housing is for living in, not speculation; Reinforce the current stance toward financial policy for real estate should not be used as a short-term measure policies in the property sector, ie leaning property to stimulate the economy; land prices, home prices, and towards targeted tightening instead of broad Confirmed expectation should be stable; property financial policies support must remain continuous, consistent, and steady; efforts should be made to implement the prudent administration system of real estate financial policies. 5 August 2020 Jiangsu Wuxi Talent Allows qualified college graduates under 45 to obtain a Aimed at keeping and attracting young talent, as attraction hukou before securing a job well as supporting employment. Scraps the time requirement of social security for Confirmed young job seekers with a junior college degree Offers a 2,000 yuan subsidy to enterprises per graduate they recruit
18
Province/
Status Date ministry City Related Policy Details Impact 5 August 2020 Zhejiang Hangzhou Price cap, The local MOHURD denied reports that developers are Despite the denial, tighter price caps or controls presales not allowed to apply for presale approvals if prices are are still likely in practice. higher than 35,000 yuan/m2, and rumours that price increases should not exceed 3.8% in presale. The city already has home price caps embedded in certain land sale contracts. As a result, some Some property projects with average prices at 42,200 new properties are much cheaper than the Unconfirmed yuan/m2 obtained presale approvals on the same day. secondary homes nearby, prompting speculation.
The city was also summoned, among a total of ten cities, to a recent central real estate work meeting that targeted to stabilise their property markets. 5 August 2020 Guangdong Shenzhen HPR Certain popular property developments are approved by Increases the chance for first-home buyers to regulators, and have implemented, a point system that purchase a popular new property. Lottery is a Confirmed prioritises households without a home in the presales logical result of undersupply and price controls. lottery. 4 August 2020 Anhui Fuyang Home Suspends issuance of home accumulation fund loans to Reduces speculation and reserves more accumulation applicants who already own two homes. resources for first-home demand. fund loan Down-payment ratio should be at least 50% for Confirmed employees’ second application for home accumulation fund loans, and the interest rate of such applications should be 10% higher than that for first-home loan applications. 4 August 2020 Hainan Haikou Regulation Announced further crack down on violations of market Enforces existing regulation. rules, such as property hoarding, false marketing, illegal Confirmed presales, as well as bundled selling.
31 July 2020 Guangdong Shenzhen Talent housing The local MNR and MOHURD suspended approving new Increases land and home supply for talent commercial serviced apartment developments and housing and other types of residential related land, encouraged developers to convert existing properties. Confirmed commercial serviced apartments into sellable talent housing, and pledged to reduce the proportion of commercial lands and increase that of residential lands. 30 July 2020 Guangdong Dongguan Talent The local MOHURD required that at least 10% of GFA Aimed at attracting high-tech talent for its local attraction, should be used for building affordable or talent housing industries. talent housing, Confirmed in each year’s residential land offerings or government- affordable led urban renewal projects. housing 19
Province/
Status Date ministry City Related Policy Details Impact Qualified talent of different levels may also enjoy subsidies in renting or buying a home. -top talent, e.g. Nobel Prize winners or leading scientists in high-tech areas can enjoy a 200m2 talent housing for 8 years free of charge, after which they can obtain the ownership of the property if they have a full-time job and made outstanding contribution during the period. 30 July 2020 Politburo Mid-year The Politburo held its mid-year meeting on 30 July, Expect policy finetuning in H2, continued meeting sets setting the economic policy tone for the rest of the year. regulatory efforts to clamp down on financial policy tone The implications for property was balanced. risks such as illegal fund flows into property, and –Accommodative monetary policy will continue, to greater variations in local property policy in support domestic demand and enable issuance of accordance with local market conditions. increased government bonds. Confirmed -In terms of property policy, the Politburo reiterated Given the momentum in the property sector “We must adhere to the positioning that houses are recovery, liquidity and market confidence, more used for living, not for speculation”, while also saying we cities are likely to tighten than loosen in H2. must “promote the steady and healthy development of the real estate market.”
30 July 2020 Guangdong Shared-equity Released instruction on the construction, allocation, and The province has conducted shared-equity pilots housing administration of shared-equity housing, stating that housing in a few cities since 2018, and is Confirmed buyers’ equity in such housing should be at least 50% in expected to expand the scheme to the whole principle, and each qualified household may only buy province in order to provide low-cost housing for one unit. certain groups. 29 July 2020 Guangxi Liuzhou Regulation Conducts investigations and crackdowns over market Minor. irregularities and violations of real estate regulations, Confirmed such as false marketing, price rigging, speculation, and tax evasion. 29 July 2020 Anhui Hefei Rental housing Drafted a circular for public consultation that allows Increases rental housing supply. non-residential properties, including commercial and office buildings, industrial plants and warehouses, and Confirmed scientific research and education buildings, to be converted into rental housing. Such converted properties can also enjoy subsidies for rental housing development. 28 July 2020 Hunan Changsha Rental housing Plans to build 9,600 units of public rental housing and Increases rental housing supply. 10 youth apartment projects this year, and increase Confirmed rental housing stock by 77,500 units next year.
20
Province/
Status Date ministry City Related Policy Details Impact 28 July 2020 Jiangsu Nanjing Talent Issued a circular ordering to prioritise qualified talent Supports the genuine demand from talent and attraction, and households that do not own a home in lottery- certain households. Confirmed genuine based presales. demand 28 July 2020 Hubei Shiyan Resumption Eases requirements for presales and presale funds, Aims to relieve financial pressure for developers cash deposit for land bids, and land transfer payments and support genuine demand for housing Delays tax and fee payment Encourages loan extension or renewal for qualified developers in difficulties Confirmed Encourages to step up lending to rental housing enterprises Advances loan issuance to individual home buyers Postpones mortgage repayment for difficult groups Steps up land supply and increases residential land proportion 28 July 2020 PBOC Housing loans The PBOC has ordered several major banks and rural Strengthens supervision of online consumption credit cooperatives to investigate online consumption loans in order to prevent funds illegally flowing loans that are being diverted into the property market, into real estate. Confirmed and submit balance and NPL ratio of loans issued through apps under Ant Group, credit card loans, and Internet-approved loans. 27 July 2020 Guangdong Dongguan HPR, resale Non-local hukou buyers need to provide one-year and Aims to cool down the overheated property restriction, two-year social security records when they purchase market, particularly the second-hand homes on price caps the first or a second home in Dongguan which there were no HPR. Properties need to be held for 3 years before resales; the previous duration was 2 years The local property prices were pushed up by the The home buyer or his/her spouse is required to obtain spillover demand from Shenzhen, which not Confirmed a local hukou before purchasing a property in long ago tightened property policies to stabilise Dongguan with non-local home accumulation fund prices and crack down speculation. loans The city also plans to pilot construction of housing Such demand and purchasing power might be projects with land and home price caps and target re-directed to other surrounding cities of buyer groups at high-price areas Shenzhen, such as Huizhou. 27 July 2020 Hainan Haikou Affordable Drafted affordable housing administration guidelines for Follows the provincial plan to increase the housing public consultation. These set the criteria for eligible development of affordable housing among other Confirmed applicants, mainly including qualified talent and local types of social housing. hukou holders, and the GFA requirement for such
21
Province/
Status Date ministry City Related Policy Details Impact housing. Most units should be smaller than 100m2 and the maximum unit size is 120m2.
24 July 2020 National General, land Vice Premier Han Zheng held a real estate work meeting Local governments are likely to focus more on supply with MOHURD, PBOC, MNR, and 10 local governments increasing land and housing supply as a means including the four tier-1 cities and six tier-2 cities to contain price increases. However, this is (Nanjing, Hangzhou, Shenyang, Chengdu, Ningbo, and effective in the medium to long term at best. Changsha), reiterating that real estate should not be used as short-term economic stimulus and that illegal Confirmed fund flow into real estate from other sectors must be banned. Local governments are required to construct a monitoring system for the residential land market, and regularly publish information on the state of land reserves and construction progress. 24 July 2020 MOHURD Multiple Rental housing Newly listed eight cities that are to receive central fiscal Increases rental housing supply cities funds for developing rental housing, ranging from Confirmed 600mn to 1bn yuan per city. The cities include Tianjin, Shijiazhuang, Taiyuan, Shenyang, Ningbo, Qingdao, Naning, and Xi’an. 23 July 2020 Jiangsu Nanjing Home supply, Supply of residential land and housing will be stepped Increases supply for genuine demand. land prices up with focus on increasing mid-to-low cost and small- to-mid-sized units in order to prioritise genuine demand Requirements for land bids will be increased to reduce the number of participating developers, and hence land prices increases via bidding Confirmed Developers are required to earmark at least 30% of the units in their commodity housing projects for local- hukou buyers that do not already own a home A divorced couple will still be considered a single household for purposes of eligibility for property purchase for two years after divorce, closing the loophole of sham divorces to buy an additional property
22
Province/
Status Date ministry City Related Policy Details Impact 23 July 2020 Beijing Rental housing Increased the income cap for households to apply for Mitigate housing pressure for low-income rental housing subsidy from a monthly average of groups. 2,400 yuan per capita to 4,200 yuan. Confirmed The subsidy is also increased from 2,000 yuan to 3,500 per month for households with three family members or above. 22 July 2020 Zhejiang Ningbo Genuine Households that do not own a home in its six urban Allocates more home supply towards genuine demand districts can have priority to buy a property if they demand. meet any of the following conditions: o At least one family member has a local hukou o The buyer has records of social security contribution Confirmed for at least 24 consecutive months in the past three years in the six districts o The buyer or his/her spouse is recognised as top/qualified talent Developers are requested to randomly select at least 50% of units to such households 17 July 2020 Shanghai Land supply The Shanghai Land Exchange held a briefing with Increases the transparency of future land developers regarding its plan of offering 17 parcels of offerings which could help stabilise market Confirmed lands in the next two months, some of which removed expectation. the 15% self-holding requirement for rental housing. 17 July 2020 Guangdong Shenzhen HPR Clarified the details of its new HPR that local hukou Clarified HPR details to support genuine demand holders having registered their hukou for less than three and prevent for speculation. years can also buy a home if they have 5-year records of social security or individual income tax payment; retired buyers with a local hukou can also buy a home if they have contributed to social security or individual income tax for 36 consecutive months before retirement. Confirmed
On the other hand, the counting of home ownerships of divorced buyers will be traced back to all marriage history in the past three years instead of the last one. And clarified that under-age children of qualified households, or those local hukou holders who just turned 18 years old, are not allowed to buy a home. 15 July 2020 Guangdong Shenzhen HPR The local MOHURD tightened its HPR: Decrease home transactions and home prices, Buyers with a local hukou for less than 3 years or particularly in the second-home market which Confirmed cumulated records of income tax payment or social saw a 14% yoy price increase in June.
23
Province/
Status Date ministry City Related Policy Details Impact security contribution for less than 36 months are That said, the new HPR mainly looks to match banned from purchasing a property. that of other tier 1 cities such as Beijing and The definition of ordinary housing is adjusted to be Shanghai, and is not expected to spread to lower property that has a total GFA of 144 sqm or less, or an tier cities. In fact, home demand might be inside GFA of 120 sqm or less, with actual transaction attracted to surrounding cities, where price price at or below 7.5mn yuan and plot ratio of the growths would also be closely monitored by property development above 1.0. The new standards regulators. are narrower than before. The down-payment ratio for non-ordinary housing is also increased to 60% and 80% for home buyers without and with a home, respectively Properties resold within 5 years after purchase, increased from 2 years previously, will be levied with a 5% VAT Home buyers divorced within 3 years will be subject to the same property policies applying to their previous household in regards to taxes, housing loans, and number of properties, i.e. those already own 2 homes before divorcing will be banned from buying a new home within 3 years of divorcing. 15 July 2020 Liaoning Dalian Presales Ordered developers to disclose information in presales Prevent for risks. in regards to properties under construction that are Confirmed pledged as collaterals.
15 July 2020 27 provinces Property Real estate intermediary associations of 27 provinces Keeps market order. and cities agency and cities, including Shenzhen, Shanghai, and Hangzhou, jointly blacklisted 65 institutions and Confirmed individuals for property speculation, frauds, embezzlement of funds, and other market violations. The blacklisted agencies and individuals are banned from conducting property agency services for 2-5 years. 14 July 2020 Inner Mongolia Home Stopped the issuance of home accumulation fund loans Reserves home accumulation funds for home accumulation to other members of the same household, and those buyers with genuine demand and reduces Confirmed fund households that purchase more than two homes. property speculation.
14 July 2020 Henan Zhengzhou Regulation Conducts investigations until end-August on violations Enforces existing regulation and maintains an of property market rules, those including tax evasion by orderly market. Confirmed double contracts, property hoarding for speculation, presales without approvals, illegal restrictions or 24
Province/
Status Date ministry City Related Policy Details Impact rejection on home purchases with home accumulation fund loans or mortgage loans, and forced home transactions, etc.
14 July 2020 MOHURD, Information Jointly released a circular looking to increase sharing of The increase in the exchange and transparancy Supreme Court, sharing registration information of home transactions, which of property data among different ministries and PBOC, MPS, STA, Confirmed will also be the base for other businesses such as departments would facilitate the regulation and and CBIRC housing loan, taxation, and home accumulation fund supervision of different areas in the property withdrawal. market. 11 July 2020 CBIRC Property Stated in an article that high-risk shadow banking is Tightens supervision on property financing. financing resurging, some funds are flowing into the property market illegally, pushing up asset bubbles. Following the Confirmed statement, CBIRC released a report on major issues found from investigation on shadow banking and cross- financial services in recent years, strictly banning funds illegally flowing into the real estate sector. 10 July 2020 Jiangsu Suzhou Talent Announced a one-off rental housing subsidy of 50,000 Mainly aims to guarantee home supply for talent attraction yuan and 30,000 yuan respectively for talent with a full- in a bid to support local industries. Limited Confirmed time PhD and Master degree in urgently needed impact on rental housing demand. industries like advanced technology. 8 July 2020 Hainan Regulation Investigated and punished 7 developers and property Enforces existing HPR and other property market agencies, and 4 individuals in several cities in the controls. province including Haikou, Sanya, Qionghai, etc., for their violations of regulations in selling properties Confirmed without presale approvals, completion approvals, and faking documents. The law breakers are blacklisted, fined, suspended home registrations, or disqualified for home purchases respectively. 8 July 2020 Guangdong Shenzhen HPR The Shenzhen Real Estate Intermediary Association Whatever the truth of the HPR rumour, the local claimed that the new HPR rumours are untrue and are MOHURD did say a few months ago they were Confirmed spread by certain market participants for the purpose of well prepared to lay out property controlling price speculation. measures if needed, i.e. when prices broadly increase in the city. 8 July 2020 MOHURD Shenzhen General Ni Hong, Vice Minister of MOHURD, summoned Home prices will again be under the regulator’s Shenzhen MOHURD and representatives of developers scrutiny, especially in cities in major city clusters and property agencies to a meeting on the property where policymakers seek to develop and Confirmed market situation and existing problems in the first half, increase population inflows. Local governments the implementation of long-term mechanism, and are likely to raise more effective measures to suggestions in respect to the property sector. better balance the supply and demand. 25
Province/
Status Date ministry City Related Policy Details Impact
Developers such as China Resources Land and Vanke said the basic problem was a lack of supply. Vanke suggested accelerating the commercial-to-residential transformation in a bid to increase housing supply.
Li Yujia, chief analyst at the Guangdong Housing Policy Research Centre, pointed out that the purpose of the MOFCOM’s trip to Shenzhen was to stabilise the property market and reduce speculation, after reports/ rumours of price surges and speculations in the city widely circulated online previously, which were denied by the local MOHURD. 6 July 2020 Zhejiang Ningbo HPR, land Widen the geographic scope for the existing HPR and Increases supply (in the medium term) while supply the counting of properties owned controlling demand in a bid to cool the Pledged to increase land supply overheated property market. Strictly reinforce the supervision of home lending and presales policies Confirmed Prioritise the home purchases by households that don’t already own a home Each batch of presales should have a GFA of at least 50,000 sqm; the interval between two presale batches should be at least 3 months. 3 July 2020 Guangdong Dongguan Presales Each batch of presales should have a GFA of at least Advances home supply and caps price increases. 30,000 sqm unless the total GFA is less than that Price difference of units in one block should be controlled within 20% The initial average prices should not exceed the Confirmed average prices of similar properties nearby in the past three months by 10%; average prices of subsequent presales should not exceed the average prices of similar units of the same development in the previous phase by 5% 2 July 2020 Zhejiang Hangzhou HPR Households whose members’ hukou are registered in Small policy tweaks to ensure home supply for non-purchase restricted areas of the city, need to the genuine demand and cracks down provide records of social security payment or individual speculation. Limited impact on home demand. Confirmed income tax payment in the past 12 months prior to the enrollment if they buy a property in a purchase restricted areas. 26
Province/
Status Date ministry City Related Policy Details Impact
Developers of certain price-capped projects need to indicate the share of properties earmarked for first-time buyers in their sale plan and ensure that at least half of properties are priced at below 35,000 yuan/sqm. 2 July 2020 Guangdong Shenzhen Home Increased the proportion of monthly home Mainly aimed at relieving temporary pressure accumulation accumulation fund contribution that may be withdrawn for tenant impacted by the pandemic. fund from 65% to 80% for employees’ home rental payment, Confirmed effective from 1 July to 31 December. The increase in the amount of withdrawals is estimated to be about 2.5bn yuan. 2 July 2020 Guangdong Huizhou Land Increased the upper limit of ordinary housing price Despite the local MOFCOM’s statement, the appreciation standards by 5-12% from the previous levels in different adjustment still raises expectations for home tax regions, which were last set in 2018. price increases.
Confirmed The local MOHURD said the adjustment mainly applies to the collection of land appreciation tax from developers, and is irrelevant to the deed tax paid by home buyers. 1 July 2020 NDRC Haikou Regulation The NDRC warned that an industrial town/ cluster in Crack down on real estate projects developed Haikou, capital of Hainan province, is in fact a real estate under industrial or commercial permitting. Confirmed development project, which needs to be renamed and subject to punishment for violations of related regulations. 1 July 2020 Beijing Home Removed certain fees in applications for home Eases and encourages the use of home accumulation accumulation fund loans for second-hand home accumulation fund loans for home purchase. Confirmed fund purchases; canceled paper-based applications.
1 July 2020 PBOC Rates Cut interest rates by 25bp for rediscount and short-term Further monetary easing could result in fund relending for smaller firms and rural sectors. leakage into the real estate market and push up Confirmed demand.
1 July 2020 Beijing Regulation Guideline allowing redevelopment of obsolete housing Increases home supply, including in some central stock and dangerous buildings. Developers may be able areas of the citye. Confirmed to increase permitted residential GFA and are encouraged to include kitchens and bathrooms in the rebuilding.
27
Province/
Status Date ministry City Related Policy Details Impact 30 June 2020 Fujian Fuzhou, Hukou Eased hukou requirements in Fuzhou and Xiamen by Encourages population inflows. Potentially Xiamen shortening the terms for social security participation to increases home demand. Confirmed 2 years for Fuzhou and 3 years for Xiamen, and removing the local residence history requirement. 30 June 2020 Guangdong Guangzhou Rental housing Local home rental regulation stipulates the Regulates the rental housing market in a bid to responsibilities of home renters and tenants, various promote its development. Confirmed rules and penalties. The regulation bans leasing of kitchens, balconies, and basement as separate units. 28 June 2020 Guangxi Nanning Public rental The municipal MOHURD clarified the target groups and Reduces living costs for low-income groups. housing standards for cash subsidies for public rental housing. Confirmed
24 June 2020 CBIRC Investigation, Urged banks, insurance companies, trust companies, Aims to prevent fund diversion to the property real estate and other financial institutions to submit reports on sector from the real economy. Limited success is financing implementation of the “housing is for living in not expected given such efforts failed even during speculation) policy, with focus on: double-digit GDP growth periods Direct or disguised use of funds in financing for land transfers or reserves Confirmed Ensuring proper developer and project qualifications Misuse of individual consumption loans, business loans, overdraft of credit card, liquidity loans, M&A loans, etc. for property purchase or development Resales of trust products and other asset management products that violate real estate financing policies or regulations 24 June 2020 Guangdong Shenzhen Property The Shenzhen Real Estate Agency Association issued a Enforces existing regulations and keeps market agency circular stressing that individuals are prohibited from order amid signs of an overheated property Confirmed conducting property agency business. market.
23 June 2020 Zhejiang Yiwu Talent Eased the requirements for qualified talent to apply for Eases and encourages home purchases for attraction housing subsidies by: qualified talent Removing the requirement of a local hukou Removing the requirement of at least two years’ employment and participation of social security in the Confirmed city; applicants only need to commit to working for a total of 7 years in the city Cancelling the requirement of a 50% down-payment ratio, but subsidies need to be fully used in the down- payment 28
Province/
Status Date ministry City Related Policy Details Impact 22 June 2020 Hubei Wuhan Home Drafted plan that would enable individuals to convert Reduces cost of mortgage repayments for accumulation commercial mortgage loans into home accumulation individual home buyers, and increases use of Confirmed fund loans, and also extends the maximum term for such home accumulation fund loans. loans from 20 years to 30 years. 22 June 2020 Hainan Talent Removed hukou restrictions for college graduates who Increases inflows of talent and potentially home attraction have graduated within the last three years with a demand. bachelor degree or above, allowing them to to obtain a local hukou before employment.
Confirmed Qualified talent who arrived after 13 May 2018 with local employment or business can also apply for home rental or purchase subsidies: Rental subsidies: 1,000-3,000 yuan/month depending on degree level for up to 3 years. Purchase subsidies: 18,000-36,000 yuan. 19 June 2020 Guangdong Shenzhen Property Bans property agencies from: Cracks down on agency activities that agency Misleading home purchasers by spreading contributed to property speculation and price misinformation like top-school housing, shantytown increase, but doesn’t tackle underlying supply- redevelopment plan, etc. demand gap Spreading fake property market news via WeChat groups or other online channels to panic people into buying Confirmed Listing second-hand home prices that are notably higher than that of recent transactions within one year or similar units in surrounding areas Profiting from illegal charges Facilitating the circumvention of transaction taxes Conducting services without qualifications Conducting services on social housing, talent housing, and other properties whose transaction is prohibited 19 June 2020 Shanghai Public rental Plans to pilot the splitting of existing public rental Lowers per unit public rental housing costs for housing housing units into smaller sizes for express couriers, low-income tenants. Confirmed cleaning workers, and household services workers.
16 June 2020 Hebei Regulation Will conduct regular checks on company qualifications, Enforces regulation and keeps market order, illegal presales, and regulatory compliance at least 10% partly targeting at preventing property Confirmed of developers and 5% of property services firms and speculation. property agencies from March to December each year.
29
Province/
Status Date ministry City Related Policy Details Impact Pledged tougher punishment for violations of laws and regulations.
16 June 2020 NDRC Hukou Reiterated that all cities, especially those with higher Increases home demand in major city-clusters, inflows of rural migrants, should ease or lift hukou more likely in satellite cities, including some like restrictions, and reform city welfare systems to include Jiangmen and Huizhou in Guangdong province Confirmed non-local hukou long-term residents rather than only that have recently removed barriers for hukou local-hukou residents. The development of key cities applicants. and city-clusters should be advanced in a bid to generate new growth drivers and room. 15 June 2020 Hainan Various Reform the presale system Targets to revamp the existing real estate system Implement a sales system of existing homes as part of reforms in the Free Trade Port master Attach no commodity housing lands in any projects plan. Accelerate the development of tourism and commercial real estate Continue with shantytown redevelopment Confirmed Push for urban renovation Advance construction of affordable housing, public rental housing, talent housing, and other social housing Set up real estate investment and acquisition funds and REITs, in order to resolve risks 15 June 2020 Guangdong Huizhou Hukou, talent The Public Security Bureau released the draft hukou Aims to encourage population inflows in a bid to attraction registration and transfer guideline for public support local development and construction, consultation, which seeks to remove hukou restrictions which could in turn increase home demand. if an applicant meets any of the following conditions: Owns or rents a home legally Participates in social security insurance Has a business licence Unconfirmed
The bureau also lowered the criteria for talent hukou and lift restrictions for college/ secondary school graduates, drop-out students to apply for a hukou.
Employees of the city’s key projects and the Greater Bay Area projects can apply for a hukou with zero barriers.
30
Province/
Status Date ministry City Related Policy Details Impact 14 June 2020 Multiple Rental housing Shenyang, Nanjing, Qingdao, Hefei, and Changsha Increases low-cost rental housing supply mainly signed a framework agreement with China Construction targeted at low-income and young groups. Bank on the development of policy rental housing, with Confirmed the bank providing at least 110bn yuan of loans to support the five cites to increase the rental stock by about 400,000 units to house 800,000 new residents within three years. 11 June 2020 Guangdong Guangzhou Administrative Established fast track for developers to apply Enables earlier construction with approval and procedure construction permits in stages according to the project construction processed in parallel. Confirmed phase.
11 June 2020 Guangdong Shenzhen Home supply Guangming district announced it would ensure housing Unlikely to redress city-wide supply-demand supply of at least 800,000 sqm per year in 2020 and gap, but may slightly reduce price pressure. Confirmed 2021, to stabilise new home prices over the long term. This came after home prices surged at several property projects in the district earlier this year. 10 June 2020 Guangdong Guangzhou Rental housing, Published the municipal government work report Increases rental housing supply social housing looking to provide more than 7,000 units of public rental housing to groups in economic need issue home renting subsidies to 13,600 households Confirmed add 20,000 rental housing units pilot construction of rental housing on collective land pilot subsidised rental housing development introduce public rental housing policies and advance construction 10 June 2020 Guangdong Jiangmen Hukou Will fully remove hukou restrictions to a “zero barrier” Attracts population inflows from smaller cities, level by removing requirements on social security out of province, and cities with stricter hukou Confirmed participation and length of stay and employment, restrictions. effective from 5 July. 9 June 2020 Hainan Sanya Social housing, Investigate problems in the construction, distribution, Regulates social housing market and better regulation and administration of social housing, looking to clamp ensures allocation to qualified groups with Confirmed down on speculation, resales, and sublease among genuine need. other market violations with social housing. 8 June 2020 Hainan General The provincial party secretary pledged to strictly control While preparing to pilot various reforms as a real estate development, and stressed that Hainan will Free Trade Port, the province seeks to prevent Confirmed not be a “factory” of properties. property market speculation and is likely to pursue a Singapore-mode in its local property market by supplying more low-cost social
31
Province/
Status Date ministry City Related Policy Details Impact housing.
8 June 2020 Guangdong Shenzhen Administrative Cancel review of construction drawings for property and Speeds up property and infrastructure procedure municipal infrastructure projects, except for certain construction. Confirmed province or state approved projects, major hazardous projects like oil & gas pipelines, and rail transit, starting from 1 July. 7 June 2020 Guangdong Dongguan Price control The local MOHURD pledged to stabilise land and home Unless there is a material supply increase, prices, increase housing supply, and clamp down on upward price pressures will continue to mount speculation. Unconfirmed This came after a third party index shows price surges in the second-hand property market of the city, which, according to the local MOHURD, is significantly different from the official transaction prices. 4 June 2020 Heilongjiang Harbin Home Increased the maximum withdrawal amount to 18,000 Encourages use of home accumulation funds, accumulation yuan and 12,000 yuan per household per year for mitigates housing cost pressure for low-income fund public rental housing tenants in cities and prefectures groups. respectively Confirmed Allowed employees to apply for home accumulation fund loans from non-local accounts and enjoy the same policies as local residents Set up home accumulation funds for gig workers Eased applications and processes 2 June 2020 Guangxi Nanning Talent Eased requirements for Type D and E talent, including Lowered the bar for home purchase by talent. attraction senior managers and professionals to obtain subsidies Limited increase in demand. Confirmed for first-home purchases. Previously such talent could only get the subsidy if they had moved to the city after 31 July 2018. 1 June 2020 PBOC, CBIRC, National Home Requested commercial banks to move business focus Banks may restrict home loans in overheated NDRC, etc. financing and credit resources from real estate and LGFVs to SMEs cities. Any broad shift in loan allocation is likely Confirmed and other parts of the real economy. to be gradual.
1 June 2020 Hainan REITs, rental The State Council issued a master plan on Hainan FTZ Expands financing channels for the real estate housing construction, pledging to support innovative financing sector in the province, which could start pilot of Confirmed for rental housing and the development of REITs in the REITs in the rental housing market first. province. 32
Province/
Status Date ministry City Related Policy Details Impact 31 May 2020 Guangdong Shenzhen Second-hand The Futian district MOHURD prohibited speculation of Aims to clamp down on home listings with false home prices, secondary housing in the name of shantytown marketing and cool second-hand home prices shantytown Confirmed redevelopment, pledging to delist relevant properties under risks of property overheating. Minimal redevelopment priced much higher than nearby communities. impact in itself because doesn’t tackle market fundamentals. 29 May 2020 Hubei Mortgage As part of consumption-support measures: Mainly aims to speed up with home transactions loans - banks to speed up issuance of individual home loans so as to support faster resumption from virus and meet residents’ ‘reasonable’ financing demand for impact. home purchases Confirmed - encourage home furnishing firms to conduct promotions and provide discounts - advance innovative financing products for home furnishings 29 May 2020 Yunnan Dali Regulation Clamp down on property sales bundled with parking Such sales methods are typically the market space and furnishing services, and advance payment response to prices caps, ie a form or hidden Confirmed and fee collection before getting presale approvals, in price increase. This policy tackles the symptoms, the National Dali Economic Development Zone until 30 not the underlying supply-demand mismatch. June. 29 May 2020 Guangdong Foshan Shared-equity Issued implementation guidelines on promoting shared- Increases supply of cheaper housing for low- housing equity housing trials in a span of three years. Qualified income groups. Likely to be in high-demand if in Confirmed local-hukou residents and migrants may purchase such reasonable locations. properties for as low as half price. 29 May 2020 Jiangsu Nanjing Second-hand Investigated developers and property agencies for Aims to contain price increases in leading school home prices hyping sales of housing in leading-school catchment catchment areas, with short-term demand spike Confirmed areas. as buyers rush to lock in a top-school quota by the deadline for the next school year. 27 May 2020 Chongqing Sales Developers are banned from promoting top-school Tweaks existing policies to regulate marketing entrance quota when selling housing projects and are activities in the property sector. Confirmed not allowed to promise such quota to home buyers.
27 May 2020 Hunan Changsha Price cap Increased the price cap on average home sales prices by Increases home price expectations and lures 7-15% in recent land offerings, and the municipal MNR developer investment, which could boost Unconfirmed stated that such adjustment is approved by the local supply. land administration committee. 26 May 2020 Hainan Prefab housing Introduced a guideline targeting to apply prefab housing Accelerates prefab housing development, in 80% of new commodity housing projects by end- lowering construction costs. Confirmed 2020. Incentives will be introduced by end-June to grant developers of such projects a higher plot ratio than other projects in the same area. 33
Province/
Status Date ministry City Related Policy Details Impact 26 May 2020 Guangdong Shenzhen Presales, Bao’an district requested all new property projects to be Mandatory lottery sales with price caps is an second-hand sold by lottery and pledged to fine developers and artificial price cap that fails to tackle underlying home prices agencies if they collect illegal charges. supply-demand gap.
Confirmed The Shenzhen municipal MOHURD and Bao’an district MOHURD also jointly investigated local property agencies and ordered the removal of second-hand property listings priced significantly higher than actual transaction prices. 26 May 2020 CBIRC Risk control Continue to curb financialisation and speculation in the While genuine demand is supported, home property market as part of its priorities for risk loans or purchases for speculation and financing Confirmed prevention this year. purposes will be strictly reviewed and withdrawn if market violations are identified. 25 May 2020 Anhui Wuwei Resale The local MOHURD of the county-level city suspended a The revoked policy could be considered as restrictions policy after five days that would have lifted the two-year stimulus instead of stabilising measures. Confirmed home resale restriction and grant developers presale Minimal impact. approvals before above-ground construction starts. 21 May 2020 Henan Zhengzhou Talent -Offers a 20,000-100,000 yuan subsidy to qualified local- Increases genuine home demand. attraction hukou university degree holders buying their first home Confirmed -Lifts the restriction on social security and individual income tax payment history for qualified talent without a local hukou to buy the first home 21 May 2020 Beijing Regulation The local MOHURD investigated and clamped down 21 Enforces existing regulation and aims to cool property agencies for violations of false promotion down property speculation and clamp down rules, inciting speculation in top school-area housing, false sales promotion. Confirmed and marketing illegal rental housing.
20 May 2020 Guangdong Shenzhen Land supply, The municipal government delegated the approving Even though residential land is not included, the social housing, power for certain land parcels, including rural land power delegation is expected to advance public rental Confirmed transformation, to district-level governments. transforming rural land into construction land housing for certain government projects such as public rental housing or talent housing. 20 May 2020 Zhejiang Taizhou Home Increased the maximum quota of home accumulation Boosts demand for prefab homes. accumulation fund loans for newly built prefab housing by 20%, Confirmed fund, prefab capped at 360,000 yuan for individuals and 600,000 housing yuan for households.
34
Province/
Status Date ministry City Related Policy Details Impact 18 May 2020 Hubei Wuhan Mortgage The city will start a the new version of commodity Reduces down-payment amount for buyers of loans, home housing sales contract which stipulates that the fully-furnished homes, hence increases sales of Confirmed accumulation decoration of fully furnished housing can also be paid such properties. loan with mortgage loans or home accumulation loans. 18 May 2020 Guangdong Shenzhen Second-hand The municipal real estate agency association released a Could provide references for local property home prices monitoring list of overheated second-hand regulators to lay out further price control Confirmed developments with recent price surges. measures. A guidance price was already given to several developments in the city. 18 May 2020 Central National Land, rental Released the guideline to accelerate improving of the Urbanisation is likely to speed up in leading city Committee, housing, home socialist market economy system pledging to improve clusters owing to the combination of rural land State Council accumulation the land pricing mechanism and stock land use reform, hukou liberalisation and innovative fund policies, push for the redevelopment of inefficient land financing such as infrastructure REITs. and transformation of land uses, reduce land collection Confirmed scale, advance the establishment of a multi-source, Land supply is likely to be increased, refined multi-channel, and rent-purchase balanced housing and accelerated, which could encourage system, and reform the home accumulation fund various participants in different sizes. system. Home accumulation fund may see bigger reforms to enrich and increase the utilisation. 17 May 2020 Shandong Ningyang Various Withdrew one day after publication a set of property Shows that even tier 5 or 6 cities are not allowed supportive measures including a 5,000 yuan subsidy for to cut down-payments to 20%. Confirmed home purchase, tax rebates, and a 20% down-payment ratio in mortgage loans for first-home purchases. 11 May 2020 Shanghai Land supply, Published updated guideline on land transactions that This is expected to boost developable land social housing added transferring and letting collective construction supply in Shanghai. Further rules are awaited on land-use rights. permitted uses that may include industrial development, infrastructure and possibly social housing.
Confirmed On 12 March State Council delegated rural land conversion rights to regions including Shanghai.
More cities are expected to follow suit as policy makers push for the rural collectively owned land to enter the market. 10 May 2020 Guangzhou, Rental housing Signed a framework contract with CCB to develop social Increases rental housing supply and promotes Hangzhou, rental housing in the pilot cities. The bank expects to for the rental housing market. The demand Confirmed Jinan, provide above 190bn yuan of loans in a span of three could partly translate into home purchases in Zhengzhou, the long run. 35
Province/
Status Date ministry City Related Policy Details Impact Fuzhou, and years to support the cities to source about 800,000 Suzhou rental housing units for more than 1mn new residents.
9 May 2020 CBIRC National Regulation Capped the maximum amount of individual credit loans Aims to prevent business or consumption loans that can be applied for online at 200,000 yuan and from illegally flowing into the real estate market. Confirmed prohibits the use of such loans in buying properties or repaying mortgages. 9 May 2020 Shandong Hukou, talent Pledged to completely lift hukou restrictions for all Encourages young talent inflows and increases attraction college undergraduates and graduates, including those potential home demand. Confirmed from other regions and overseas, allow them to obtain a hukou in the province before landing a job. 8 May 2020 Zhejiang Ningbo Hukou Eased hukou restrictions by eliminating the minimum Encourages population inflows from other duration of social security payment for qualified regions of the province and increases home residents who invest, or have a stable job/business and demand. residence in the city; shortening social security payment history from five years to three years for residents who Ningbo was no.4 city in terms of population Confirmed rent a home, granting residents from Zhoushan, a inflows (behind Hangzhou, Shenzhen, neighbouring city, the same benefits as local-hukou Guangzhou) residents, and allowing social security payment history in other Zhejiang cities to be counted in local hukou application. 8 May 2020 Guangdong Shenzhen Land supply 2020 land supply plan almost doubled residential land Increases home supply in 2-3 years, but supply from 2019 probably not enough to relieve upward price Confirmed pressure. Areas near rail transit stops should be reserved to build talent housing and public rental housing 7 May 2020 Guangxi Nanning Hukou Comprehensively lifted hukou restrictions by allowing all Encourages population inflows and potentially population owning or renting a residential place or increases home demand. Confirmed having a stable job to apply a local hukou. Immediate family members of the applicant can also apply for a hukou. 7 May 2020 Guangdong Dongguan Resale The local MOHURD announced that residential Policy tweaks to increase upgrader demand. restriction properties bought and completing online signing before Confirmed 11 April 2017 may now be resold on the market (dropping the previous requirement of two years after obtaining the property ownership certificate).
36
Province/
Status Date ministry City Related Policy Details Impact 7 May 2020 Guangdong Guangzhou Home Allows virus-hit tenants to withdraw up to 3,000 yuan of Relieves rent payment pressure and supports accumulation home accumulation fund before 30 June for rent rental housing market. Confirmed fund, rental payment. housing 6 May 2020 Hunan Chenzhou Tax, - Pledged to halve deed tax for qualified property Mainly aims to advance property sales in a bid resumption purchasers and subsidise 1,000 yuan per underground to relieve cashflow pressure for developers. parking space purchase. - Postponed taxes and land transfer payment for Confirmed property developers, encouraged banks to increase credit support for real estate enterprises, eased presales requirements and accelerated the issuance of accumulation fund loans. 6 May 2020 Beijing Education Xicheng district announced that the allocation of Mainly increases secondary home purchases in rights primary school places in the district will change from top school areas before end-July as parents seek the current “one home – one school” to the “one home to guarantee a place at a top schools for their Unconfirmed – multiple schools” system, effective from 1 August. children; after then, home sales and prices in current non-top school areas are likely to increase as there’s also a chance to get a place at the top schools. 2 May 2020 Hebei Langfang Hukou, Implement two-track hukou policy by region. Eases hukou requirements in a bid to attract urbanization - In districts and counties surrounding Beijing, qualified people priced out from Beijing. This likely to applicants need to have stable, legal residence (incl. support the local property buying/ renting rental housing) and job, participate in social insurance, market. and hold a higher diploma or above degree to apply for Confirmed a hukou -Applicants in other districts or counties can apply for a hukou as long as they have a legal, stable residence. -The city also aims to reach 50% in urbanisation rate this year and increase it to 60% by 2025. 2 May 2020 Shandong Jinan Hukou, talent -Lifted hukou restrictions for all migrants (and Encourages population inflows and potentially attraction immediate family) who come to work or live in the city. increases home demand. -Non-local college undergraduates can apply for a hukou Confirmed online and will be subsidised for attending job interviews or taking job offers in the city. -Qualified foreign investors and company executives will be provided with eased immigration and stay policies.
37
Province/
Status Date ministry City Related Policy Details Impact 30 April 2020 Jiangsu Nantong Policy Released a guideline that pledges to allocate at least Supports genuine home demand. enforcement, 30% of qualified property units on presales with priority Confirmed talent to first-home buyers or allocate 40% of the units to attraction qualified talent. 30 April 2020 Hainan Talent Introduced affordable housing in six cities including Encourages population inflows and supports attraction, Haikou and Sanya with price capped at 60% of the affordable housing development. affordable market level for qualified households (either non-home Confirmed housing owner or with average living area per capita below the city average) and imported talent of different levels and types. 28 April 2020 Hubei Wuhan Resumption - encourages banks to reduce housing loan interest rate Mitigate the virus impact to the real estate for qualified home buyers market and support individual home buyers. - allows delayed property handover by up to 3 months - defer mortgage repayment of virus-hit home buyers by Confirmed up to 3 months upon their application - allows qualified buyers to register schools for their children prior to property handover as long as handover is by end-August. 28 April 2020 Guangdong Shenzhen Price control Zhang Xuefan, head of the Shenzhen MOHURD, said his Guidance price could be expanded to certain department has various options to control price hikes: projects first, as opposed to a city-wide broad - reducing leverage control, if price hikes continue, in a bid to cool - increasing interest rates the overheated market before other stringent - increasing taxes restrictions are applied. - differentiated policies for high-priced properties - property tax
Zhang pushed back against reports of price surges in the secondary housing market, claiming that the prices in Unconfirmed question were listing prices not transaction prices.
Guangming district next day introduced the 63,000 yuan/m2 ‘guidance’ price for existing housing at four popular property development projects in the district, the first of its kind in Shenzhen. Some developers and property agencies are also ordered to delist high-priced housing units.
The local realtor association said it would monitor popular property projects and regularly publish a list of 38
Province/
Status Date ministry City Related Policy Details Impact developments with significant price changes starting in May.
28 April 2020 Zhejiang Hukou Made it easier for close family members of a local- Encourages population inflows and increases hukou resident to obtain a hukou in the same city home demand. (except Hangzhou), including parents, spouses, parents- Confirmed in-law.
Allowing collective hukou registration at talent apartments and serviced apartments. 24 April 2020 Jiangsu Suzhou Talent The Suzhou Industrial Park district offers qualified talent Increases quality population inflows and home attraction home purchase subsidies: demand in what is already among the highest- - up to 5mn yuan for full-time employed top talent, such price districts in the city. as Nobel prize winners and CAS or CAE fellows - up to 2mn yuan for leading talent under qualified talent programs or in certain sectors e.g. biomedicine, nano technology, or AI Confirmed - up to 300,000 yuan for high-level talent including postgraduates
Qualified talent may also buy or rent a home at preferential prices and apply for home accumulation fund loans sized up to six times the maximum quota for ordinary applicants. 23 April 2020 Shanghai Regulation The PBOC Shanghai branch prohibits diversion of Follows the strengthened regulatory of such property-backed consumption loans or business loans to credit flows in Shenzhen to clamp down Confirmed the property market. property speculation.
23 April 2020 Guangdong Shenzhen Regulation The PBOC Shenzhen branch denied reports of rampant Shenzhen local government clearly highly abuse of low-cost SME loans to speculate on real estate. sensitive to claims of allowing business loans to fuel property speculation, sending out 5 Officials did acknowledge some clients at a few banks departments to meet the press. Confirmed has bought a property with cash then applied for business loans using it as collateral, but the scale is Despite the official denial of low-cost SME loans small and no such loans had actually been granted yet. flowing into the real estate market, other types of loans, e.g. consumption loans, are still likely being diverted into property.
39
Province/
Status Date ministry City Related Policy Details Impact The local MOHURD also denied that property prices are surging in the city, and said it would investigate property agencies for rumour-mongering.
The local CBIRC ordered to strengthen qualification review of borrowers and the administration of collaterals and use of loans, vowing to correct illegal use of loans diverted to property and withdraw or reduce the credit of debtors if market violations are found. 23 April 2020 Hubei Jingzhou Down-payment Withdrew package of property support policies within Jingzhou may reissue the measures without the ratio, home two days of announcement, claiming that some down-payment cut that, in our view, crossed the accumulation measures in the policy were not in line with the line. fund, social provincial guidelines. housing Cities will continue to test the boundaries of The cancelled measures intended to cut the down- acceptable policies given the economic payment ratios to 20% from 30% for first-home headwinds. Confirmed purchases and to 30% from 50% for second-home purchases, temporarily exempt deed tax for home buying, and increase the quota of home accumulation fund loans from 450,000 yuan to 500,000 yuan for individual home buyers, as well as lower the ratio of social housing in property development area to 3% from 7%. 22 April 2020 CBIRC National Regulation Xiao Yuanqi, CRO at the CBIRC, stressed that loans Increases supervision over financing channels should only be used according to the purpose stated in for home buying. Likely to have limited success the application, and should not be diverted to other in our view given the fungibility of money in an purposes. environment of easing liquidity. Confirmed Xiao said CBIRC asked banks to keep monitoring lending flows and ensure the proper use of the loans, insisting that illegal loans diverted to the property market must be corrected. 22 April 2020 Hubei Wuhan Rental housing Allows qualified commercial or office properties that are Increases rental housing supply, reduces already built but vacant in certain districts to be commercial and office vacancy rate. Confirmed converted to rental housing, effective from 20 May for five years.
40
Province/
Status Date ministry City Related Policy Details Impact 21 April 2020 Hubei Land transfer, -Allows developers to make land transfer payment by Mainly supports cash-strapped developers and mortgage, installments within one year mortgage debtors. presales, land -Encourages financial institutions to accelerate the bids issuance of individual housing loans, defer mortgage Moderately accelerates presale housing supply repayment, and reduce or exempt mortgage interest and home transactions. Confirmed payment for virus-hit individuals -Appropriately relaxes presales requirements, lowers the ratio of presales proceeds under supervision, allows developers to withdraw more presales funds for operation, and reduces the deposit ratio for land bids 21 April 2020 Heilongjiang Harbin Home Increased the quota of home accumulation fund Increases support for low-income households in accumulation withdrawal for public rental housing payment to 18,000 rental market. Confirmed fund, public yuan and 12,000 yuan per year for urban districts and rental housing county-level cities respectively. 20 April 2020 PBOC LPR The five-year or above LPR fell by 10bp to 4.65%. Likely to feed into mortage rate reductions, encourages home purchases. Confirmed
18 April 2020 Yunnan Dali Various Increases use of presales funds, improves and shortens Advances presales and construction, supports administrative processes of presale approvals and virus-hit developers, and encourages home construction project approvals, encourages financial purchases. Confirmed institutions to support construction enterprises, and encourages use of home accumulation funds for first- home and second-home purchases. 16 April 2020 Guangdong Shenzhen Presales, land Issued a circular aiming to accelerate commodity Speeds up new home supply to market, transfer housing supply by easing presale requirements, construction of urban renewal projects and Confirmed advancing urban renewal projects, and deferring land supports short-term developer financing. transfer payments. 16 April 2020 Guangdong Shenzhen Talent Drafted a guideline for public consultation that proposes Tweaks home renting subsidies to focus more on attraction, to remove home renting subsidies for talent with part- higher-educated talent. Confirmed rental housing time academic qualifications.
15 April 2020 Guangdong Foshan Home Tightens rules by banning the second application if the Partly reduces home accumulation fund loans accumulation first loan has yet to be paid off. for second home purchases. Confirmed fund
41
Province/
Status Date ministry City Related Policy Details Impact 14 April 2020 Jiangxi Nanchang Hukou All requirements to document social insurance history, Encourages population inflows and potentially years of residency, education qualifications, among increases home demand. But the effect might be others, would be removed in hukou applications. mild if more people move to major city clusters. Confirmed - Home tenants may also register for collective hukou - Employees who live in self-constructed dorms or non- residential properties eg commercial-residential apartments may also apply for a hukou 14 April 2020 Shandong Qingdao Sales Started 100-day online property sales campaign Likely to increase home sales volume by encouraging developers and property agencies to lowering prices. provide discounts in home prices and transaction commissions. Participating developers and agencies that Confirmed reach high transactions can earn points in annual credit evaluation.
This came after the city revoked a policy that would have eased home purchase and sales restrictions. 14 April 2020 Chongqing Hukou Eased requirements for migrant workers and business Encourages population inflows and potentially owners to obtain a hukou in the city by requiring two increases home demand. year’s rather than three year’s local work experience.
Confirmed Qualified talent and skilled workers may also apply for a hukou for themselves and their spouses, children, and parents, with different treatment depending on level and type of qualifications. 13 April 2020 MOHURD National General Released an opinion document that plans to consolidate Facilitates unified home transaction property listing information and establish a national management and improves data transparency, Confirmed platform for online home transactions and registration. which could support for better property market control and policy making. 11 April 2020 Beijing Rental housing Plans to lower the threshold for home rental subsidies Increases rental housing demand. and increase the maximum subsidy for qualified Confirmed households.
11 April 2020 Guangdong Guangzhou/ Accumulation Guangzhou allows employees who don’t already own a Boost property purchases in Zhaoqing. Zhaoqing fund property to withdraw home accumulation funds to buy Confirmed a home in Zhaoqing.
42
Province/
Status Date ministry City Related Policy Details Impact 10 April 2020 PBOC General Stressed the stability, continuity, and consistency of Maintains overarching policy in the real estate policies and prioritised stabilising property market market unchanged while temporary and expectations over stabilising current land and home controlled easing could be allowed at local levels prices. in a bid to counter virus-led impact. Confirmed Macro leverage ratio in China and the world should rise PBOC will ease credit conditions somewhat but “within a reasonable range” given the downward seek to avoid all-out easing seen in 2009 that led economic pressures from COVID-19 impact. to overcapacity and leverage problems for the next decade. 10 April 2020 Shanghai Land bids, tax Pledged to move land bids online and postpone urban Targets to ease land bids and mitigate financial and fee cuts supporting infrastructure fees and land appreciation tax pressure for developers impacted by the virus Confirmed for qualified developers. outbreak.
9 April 2020 Central Hukou -Encourage megacities and ultra-large cities to improve Increases home demand in large city clusters. Committee, point-based hukou systems State Council -Open up or relax hukou restrictions in all cities except megacities Confirmed -Pilot hukou registration system based on long-term place of residence -Establish long-term population linked education, employment, healthcare, and other public services. 9 April 2020 Jiangsu Nanjing Hukou, talent -Eased hukou requirements by increasing the age limit Aims to attract or maintain highly educated attraction from 40 to 45 for eligible bachelor degree applicants, talent, which potentially could increase home including returned overseas students and part-time demand. postgraduates. Confirmed -Higher diploma holders under 40 can also get a hukou if they are employed and participated in social insurance for half a year. -Build 7,000 units or about 500,000 sqm of talent- designated apartments. 9 April 2020 Beijing Presales Draft policy that would extend presale duration and Aims to push for earlier presales and allow more allow developers to apply for presale approvals for new time for presales. Confirmed home supply in batches.
9 April 2020 Guangdong Shenzhen Regulation The Nanshan district of Shenzhen released a circular Enforces existing regulation and aims to prevent pledging to clamp down property agencies involved in potential home price hikes. Confirmed property speculation.
43
Province/
Status Date ministry City Related Policy Details Impact 8 April 2020 Hainan Shantytown Targets to start construction of 8,563 units of Shantytown redevelopment target inched up redevelopment shantytown redevelopment, increase 2,949 units of from the 2019 level, but the impact is limited Confirmed , public rental public rental housing, and provide rent allowance to due to the small scale. housing 5,141 households this year. 8 April 2020 Jiangsu Nanjing Land supply -Plans to increase residential land supply by 8.4% yoy in Increases home supply. 2020 Confirmed -70% of which will be used to build small- and medium- sized properties. 7 April 2020 Zhejiang Hangzhou Accumulation Increased maximum amount of home accumulation Reduces residential expenses for tenants and fund, rental fund withdrawal by 50% for virus-hit employees who supports rental housing demand. Confirmed housing rent a home and don’t own a home until 30-June.
7 April 2020 Liaoning Shenyang Developer Allowed developers to defer land transfer payment, Mitigate cash-strapped developers and funding housing delivery, and tax payment, reduce and exempt accelerate presales amid the virus outbreak. Confirmed their contribution of social insurance, and allow them to withdraw 10% of the presale funds in advance before end-June. 7 April 2020 Liaoning Shenyang Accumulation Increased the maximum amount of home accumulation Reduces residential expenses for tenants and fund, rental fund that households can withdraw and use it for home supports rental housing demand. Confirmed housing rent payment.
5 April 2020 Guangdong Shenzhen Regulation Baoan district of Shenzhen pledged to clamp down on Enforces existing regulation and aims to illegal extra fees charged by developers and property maintain market order and stability. Confirmed agencies as the local home market heated up at some property projects. 3 April 2020 Liaoning Shenyang Hukou, talent Broadly scrapped hukou restrictions for qualified groups Attracts young talent and increases potential attraction including vocational school or above undergraduates property demand. and graduates, skilled workers with primary or above qualifications, entrepreneurs and individual business Confirmed owners, employees with labour contracts or flexibly employed but paying medical or pension insurance, home owners, and direct relatives of local hukou residents. 2 April 2020 Zhejiang Hangzhou Talent Qualified talent will be given more chances in home Limited impact. attraction purchase lottery. Confirmed
44
Province/
Status Date ministry City Related Policy Details Impact 2 April 2020 Guizhou Guiyang Sales Strictly prohibits rule violations in home sales including: Enforces market rules to maintain home price - Illegal financing, advance payment, or installments stability. provided by developers or property agencies for down- Confirmed payment - Unapproved price adjustments and excessive marketing with vouchers, value cards, or cash rebates 2 April 2020 Tianjin Hukou Lowered the bar for getting a hukou from 140 points to Increases home demand. 120 points in its point-based hukou application system. Confirmed
2 April 2020 Hunan Yueyang General Issued supportive measures for the local property Eases and accelerates property construction and market: presales in a bid to support cashflow-strapped - Encouraged banks to extend or renew loans to developers. developers and defer home mortgage and credit card repayment for frontline healthcare workers, people in quarantine, and groups without income amid the virus Confirmed outbreak - Relaxed rules on presale approvals and use of presale funds - Allowed developers to make land payment in installments - Eased and advanced construction approvals 2 April 2020 Liaoning Shenyang Accumulation Shortens application process for home accumulation Increases use of home accumulation funds. fund fund withdrawals, allows withdrawals of accumulation Confirmed funds for repaying commercial home loans, and increases the maximum withdrawal amount for home rental. 1 April 2020 Guangdong Shenzhen Sales The local MOHURD ordered that ordered property Supports the resumption of the property management firms to allow property agents to carry out market. Confirmed a reasonable number of in-person property viewings to a reasonable number of clients. 1 April 2020 Zhejiang Jiaxing Accumulation -The maximum term of accumulation fund loans for Small boost to demand by increasing use of fund second-hand housing is increased from 20 years to 30 accumulation funds in purchasing and renting a years. home. Confirmed -The maximum withdrawal of accumulation funds for rent payment is increased from 1,000 yuan per month to 1,500 yuan per month.
45
Province/
Status Date ministry City Related Policy Details Impact 31 March 2020 Hainan Sanya Talent Qualified talent may obtain a subsidy ranging from Small boost to home sales. Moderate support attraction 18,000 yuan to 60,000 yuan per year depending on for rental housing. Confirmed educational degree or skill qualification, and for up to 3 years for buying or renting a home. 31 March 2020 Shaanxi Shantytown Targets to start construction on 16,800 shantytown Decreased support for home sales in lower-tier redevelopment redevelopment units and offer rental subsidies to cities in province due to sharp reduction from Confirmed 39,273 households this year. the 107,700 units of shantytown redevelopment target last year. 31 March 2020 Jiangxi Shantytown Targets to start construction of 204,200 units of Decreased support for home sales in lower-tier redevelopment shantytown redevelopment and 8,088 units of public cities in province as the shantytown Confirmed rental housing, and to issue rent subsidy to 75,000 redevelopment targets shrinks from last year’s households. 277,900 units. 30 March 2020 Chengdu, Accumulation Agreed on measures to promote home accumulation Encourages labour mobility and use of home Chongqing fund Confirmed fund portability between the between the two cities. accumulation funds in home purchases in the Chengdu-Chongqing city cluster.
27 March 2020 Yunnan Dali General Eased the requirements of granting presale approvals Relieves cashflow pressure for developers. and shortened the approval time for the use of presale funds to a maximum of two working days. Confirmed
Approval and issuance of accumulation fund loans for first and second home purchases are to be accelerated. 27 March 2020 Guangdong Jiangmen HPR Scrapped the requirement of social security proof for Increases home sales. non-hukou residents with a higher diploma to buy a Confirmed home.
24 March 2020 Hunan Yiyang General -Halved deed tax for qualified individual purchases of Reduce virus impact on developers, support the newly built commodity houses smaller than under 144 resumption of the property market. sqm and located in central districts until end of 2020. -Encouraged banks to expand credit support to developers Confirmed -Allowed developers to defer tax payment, land transfer payment -Relaxed requirements for presale approval and use of presale funds -Strengthened presale price management, advanced project review and approvals
46
Province/
Status Date ministry City Related Policy Details Impact 24 March 2020 Zhejiang Haining HPR Suspended a policy within an hour of announcement Likely signals HPR loosening regarded as step too that would have temporarily allowed non-hukou far by higher levels of government. Confirmed residents to buy a second home without restrictions during a housing fair on 25 March to 24 April. 24 March 2020 Hubei Wuhan Presales The local MOHURD streamlined presale approval Brings new supply to market and supports process developer financing. - implemented online pre-approval for conducting pre- sales - reduced the number of documents required for Confirmed approval - loosened restrictions on use of pre-sale funds.
Project roadshows and on-site sales events are still suspended until the city rescinds restrictions on people movement and transportation. 23 March 2020 Jiangsu Shantytown The local MOHURD plans to start redeveloping 180,000 Low-end housing in lower-tier cities could see redevelopment shantytown units and complete 80,000 units this year. weaker demand support from shantytown , public rental The province started 255,400 units of shantytown redevelopment than last year, especially if the housing redevelopment and completed 145,200 units last year. ratio of cash compensation is further cut. Confirmed
The province also plans to start the construction of 1,500 public rental housing units, and offer rent subsidies to 17,000 households. 23 March 2020 Jilin Changchun Presales The local MOHURD has reportedly released a document Mitigate cashflow pressure of developers if supporting developers. A publicly leaked document confirmed. Unconfirmed showed the city will lower the requirements for property developers to receive presale approval and use presale funds for construction. 22 March 2020 CBIRC, SAFE Developer CBIRC vice chairman Zhou Liang reiterated the principle Long-term financing policy still tight for financing of “housing is for living in not speculation” and pledged developers despite temporary support measures to facilitate the steady and healthy development of the amid the virus outbreak. real estate market. Confirmed Xuan Changneng, deputy head of the SAFE, announced the real estate industry is excluded in a recent policy adjustment allowing enterprises to increase bond financing overseas.
47
Province/
Status Date ministry City Related Policy Details Impact 21 March 2020 Jiangsu Suzhou Talent Made a January draft policy official which lowers hukou Expands hukou easing to all areas and increases attraction requirements from 1 May by allowing bachelor’s degree home demand in the city. Certain projects in holders under 45, and higher diploma degree holders Suzhou have reportedly seen very strong under 35 and with 6-month social security payment, to demand recently. obtain a hukou in all districts and counties of Suzhou Confirmed without further restrictions.
Qualified high-end talent in the frontier technology sectors and those urgently needed by the FTZ will be offered a reward, capped at 400,000 yuan per year, based on personal income. 18 March 2020 Guangdong Foshan Talent Relaxed the requirements of obtaining the Type T talent Lowers the bar for home purchases, likely to attraction card by allowing those with a junior college or technical boost home demand temporarily as buyers may secondary school degree to apply the card during the think such measures could be removed after the virus outbreak, without giving a deadline. virus is gone. Confirmed The Type T talent card grants the holders the same rights as a local-hukou resident in purchasing a house, and used to be only applicable to qualified talent such as entrepreneurs, artists, and those with special skills. 17 March 2020 CBIRC Down-payment Xiao Yuanqi, CBIRC chief risk officer, said: Hints that certain down-payment ratio reduction ratio, housing - overall real estate financing policy remains unchanged and housing loan rate cuts will be allowed (for loan rates - policy adjustment can be made by local governments example in non-purchase restriction cities). or commercial banks as long as they are within the Confirmed scope of the existing regulatory policies - recent policy tweaks such as down-payment ratio reduction and housing loan rate cut are within the overall policy requirement 17 March 2020 NDRC Beijing, Development Strictly controls real estate from disorderly development Prevent speculation at this potential hotspot. Hebei in the junction of Beijing’s Tongzhou district and Sanhe, Dachang, and Xianghe of Hebei province, looking to: - set higher barriers for real estate development Confirmed projects and tighten annual development quota - supply residential land according to job creation and ancillary facilities - strengthen joint supervision in the junction - strictly prohibit land hoarding and speculation
48
Province/
Status Date ministry City Related Policy Details Impact 17 March 2020 Shandong Qingdao Hukou, talent The local MOHRSS relaxed hukou requirements Increases young workforce and potentially home attraction - allow undergraduates of local universities and final- demand. year undergraduates of non-local universities to apply Confirmed for a hukou - qualified undergraduates can also apply for talent apartment 16 March 2020 Guangdong Dongguan General Planned to improve price control and HPR policies, Policy tweaks likely to be made to ease simplify home price registration, expand home restrictions and support genuine demand. accumulation fund coverage and loan term, adjust land Confirmed supply based on housing inventory, expand second- home purchases, accelerate urban renovation and develop rental housing. 16 March 2020 Guangdong Guangzhou Talent Qualified talent and local undergraduates and Increase in home sales in the selected areas. attraction employees in Baiyun district can enjoy the equivalent Confirmed home purchase and school access policies as local residents in four selected towns of the district within one-year’s trial. 16 March 2020 NBS National General NBS spokesman Mao Shengyong reiterated that existing Policy makers will “wait and see” as home sales real estate polies will be maintained despite zero home start to recover. Overall policy tone will remain Confirmed transactions and sharp slowdown in price growth in as is unless home price decreases spread to and many cities in February amid sales suspension. worsen in more cities. 16 March 2020 Shandong Jinan HPR The Prior Zone For Replacing Old Growth Drivers With HPR removal probably seen to have crossed the New Ones, a district in Jinan, retracted within two days line. a policy that allows developers to use proceeds from Confirmed presales immediately and home buyers to purchase a property without HPR if such property meets certain environmental standards. 12 March 2020 State Council Nationwide Land supply Delegates approval rights to covert permanent basic Expands and accelerates land supply at local arable land use rights to construction land use rights to governments, particularly in the pilot regions Beijing, Tianjin, Shanghai, Jiangsu, Zhejiang, Anhui, where major city clusters are located. Guangdong, and Chongqing as the first batch of pilot Confirmed regions for one year. Provincial/municipal governments are still bound to annual rural land conversion quotas, Delegates approval rights to convert non-permanent but these pilots should provide more flexibility arable land use rights to a construction land use right to in how they use them. all provincial governments.
49
Province/
Status Date ministry City Related Policy Details Impact 12 March 2020 Shaanxi Baoji General Retracted a set of supportive measures within hours of The removed policies were mainly aimed at announcement: supporting developers and the property market Shorten real estate project approval time from 20 hard hit by the virus outbreak. working days to 15 days Extend validity of relevant permits A deadline (30 June) was added to nearly all the Allow developers to apply for presale approval when measures, likely to avoid being deemed as using 25% of the project investment is reached real estate as short-term stimulus. Confirmed Lower deposit rate for land bids to 20% Allow payment for land transfers in installments However, the short-lived plan, again, shows that within one year after land bid even well-worded measures are under higher- Ask banks to lower down-payment ratio for first- level scrutiny. home purchases Increase the maximum size of accumulation fund loan from 400,000 yuan to 500,000 yuan 11 March 2020 Guangdong Shenzhen General The local MOHURD aims to Mitigate cash pressure for developers, push for - restore sales offices and on-spot property project the resumption of home sales, and accelerate viewings based on the virus outbreak status land supply and real estate construction. Confirmed - build online system for processing home transactions - qualified developers may draw on 20% of the presale proceeds early - increase supply of residential lands. 11 March 2020 Hebei Shantytown - start construction on 58,488 shantytown units, Fading home sale boost in low-tier cities as redevelopment compared with about 120,000 units last year shantytown redevelopment winds down in Confirmed - complete redevelopment of all remaining shantytown Hebei. area this year. 10 March 2020 Zhejiang Huzhou Down-payment Bank of Huzhou, a local joint-stock commercial bank, Local governments and banks may strengthen denied reports it would cut the minimum down- control over announcement of similar policies in payment ratio by 10ppt for both first-home and second- order to not send a wrong message, as other Confirmed home purchases in the local property market. places following suit may lead to broader risks. Policy tweaks will prioritise alleviating cash- strained developers first. 10 March 2020 Shandong Presale Eases presale requirements and use of presale funds for Supports cash-strapped developers amid the developers. virus outbreak. Confirmed
9 March 2020 Fujian Fuzhou Accumulation Removed restrictions on accumulation fund loan period Supports genuine demand for secondary homes. fund loan for purchases of qualified second-hand homes. Confirmed
50
Province/
Status Date ministry City Related Policy Details Impact 9 March 2020 Fujian General Pushes for urban renovation, shantytown Accelerates resumption of construction. redevelopment, development of rental housing in Supports rental housing market. Confirmed Fuzhou and Xiamen, and exemption of worker salary deposit for contractors. 8 March 2020 Hainan Sales -Homes built on newly transferred lands can only be End of presale in Hainan raises the financing restriction, sold after completion, ending the current presales costs of property development and may reduce Presales system in the housing market. developer interest in land acquisition. Confirmed -Ban sales of affordable housing or commodity housing to local and permanent residents or households who already own two or more properties in the province. 7 March 2020 Guangdong Shenzhen Social housing Qualified properties including illegal buildings, serviced Increases supply of low-end rental and for sale apartments, and urban villages, can be converted into housing. Confirmed public rental housing and talent housing after safety upgrades. 6 March 2020 Guangdong Guangzhou Hukou, rental College and vocational school graduates, and qualified Increases rental housing supply and demand housing groups without a residence, can apply for the collective somewhat, though it is unlikely that much land hukou in Guangzhou. will be provided at far below market price, to make the yields attractive. Rental housing built on collective land or state construction land or converted from non-residential Confirmed properties will be subsidised up to 800 yuan/sqm.
Newly built or converted rental housing provided to public service workers, such as cleaners and public bus drivers, and under government price guidance, can get a subsidy up to 1,000 yuan per sqm. 5 March 2020 Henan Zhumadian Down-payment Revoked the supportive measures including down- Other local governments will be cautious in payment ratio cut for accumulation fund loans after releasing similar policies, potentially Henan provincial government ordered the Zhumadian discouraging local governments to support the Confirmed government officials to stick to existing property policies property market even if it is in a downtrend. and maintain property market stability. Lower tier cities are likely to be affected more without effective tools or incentives to support demand or attract new residents. 4 March 2020 Guangdong Dongguan Price control Suspends issuing presale or sale approval if the Limits price increase and prevents for “price registered price of the said project is significantly higher war”. Confirmed than that of its surrounding properties of the same type or previously sold units in the same project.
51
Province/
Status Date ministry City Related Policy Details Impact Developers should publish all units and the corresponding registered prices within 10 days after the presale or sale approval is granted. The actual transaction price should not be higher than the registered price or lower than 90% of the registered price.
Registered price adjustment allowed for unsold units 180 days after obtaining the presale or sale approval, up to 5% of price increase and no limit on price decrease. 4 March 2020 PBOC General Reiterated “housing is for living in not speculation” and Policy adjustments would depend on local “real estate should not be used as a short-term means conditions such as home prices and financial Confirmed for stimulating the economy”, and pledged to maintain conditions, more divergence could be seen the continuity, consistency, and stability of real estate among different regions as well as developers. financial policies. 3 March 2020 CSRC Developer The CSRC eased corporate bond issuance rules by More developers will be qualified for financing financing adopting a registration-based mechanism and removing via bond issuance. Confirmed previous requirements that outstanding bonds should not exceed 40% of the company’s net assets and the maturity term should be above one year. 3 March 2020 Shandong Jinan, Hukou Pledges to accelerate lifting hukou restrictions in Jinan Low-end housing demand support, pushes for Qingdao and central districts of Qingdao, step up incentives to the integration of urban and rural areas, Confirmed regions that absorb more migrant workers from rural increases urbanisation rate. areas. 3 March 2020 Tianjin Hukou, talent The municipal DRC allows qualified employees working Supports the development of Beijing-Tianjin- attraction on Beijing-transferred projects in two selected science Hebei city clusters. Limited boost for home parks to apply for a local hukou. demand.
Science park employees without local hukou may buy Confirmed purchase a home, but cannot sell it within three years after obtaining the ownership certificate.
Employees’ non-local hukou children can enroll in local public schools. 3 March 2020 Guangdong Guangzhou Commercial Revoked the removal of sales restrictions on commercial Support developers with tight cash flows and property, properties, e.g. offices, shops, and serviced apartments, the rental housing market. Confirmed developer to individual buyers and the minimum floor space of financing, 300sqm required for each divided unit in new Revocation signals that property policy in tier 1 52
Province/
Status Date ministry City Related Policy Details Impact rental housing commercial property projects, just two days after such cities is still tight. announcement was made.
The final circular allows developers with cash guarantee to use presale funds, steps up support for the rental housing market, and accelerate the allocation of subsidies for rental housing enterprises. 3 March 2020 Jiangsu Changzhou General -Allows developers affected by the virus outbreak to Mitigate cash-flow risks at developers; defer land transfer payment and construction start encourages use of accumulation fund loans to -Relaxes presale requirements support genuine home demand. Confirmed -Appropriately adjustment to differentiated accumulation fund loan policies to promote first-home purchases 2 March 2020 Hunan Shantytown The provincial MOHURD plans to redevelop 91,217 units Increases public rental housing supply redevelopment of shantytown and start the construction on 28,334 , public rental units of public rental housing with a total investment of More residents from shantytowns will receive housing 77.0bn yuan this year compensation in the form of social housing rather than cash lump sums. 127,700 households will receive home rental subsidies Confirmed
Regions with shortage of market-built housing and high home price growth should scrap cash compensation for shantytown redevelopment in a timely manner
Promote prefab housing 1 March 2020 PBOC LPR, mortgage Starts the switch of interest rates for the existing home Reduces mortgage repayment in the short- and rates mortgages. Borrowers can choose either an LPR-linked medium-term as more people are expected to Confirmed rate or a fixed rate for the repayment of their remaining opt to the LPR-based rates, which are likely to mortgage. The LPR-linked rates can be renewed as often fall in the coming months. as once per year. 29 February Beijing Land supply The local Planning and Natural Resources Commission Increases home supplies in suburbs/ satellite 2020 and DRC jointly announced the construction land supply city areas. plan for 2020 - residential land for building housing with property Confirmed rights: 870 hectares - land for building rental housing: 130 hectares -other kinds of commodity housing such as shared- equity housing: 600 hectares
53
Province/
Status Date ministry City Related Policy Details Impact The residential land is mainly supplied in “new towns”, and is mostly located along rail transit lines and close to industrial parks.
28 February Henan Hebi Presale, Relaxed presale requirements and encourage banks to Mainly aimed at supporting developers amid the 2020 developer lower lending rates to developers. virus outbreak. Confirmed financing
27 February Zhejiang Hangzhou Talent The local MOHRSS offers 10,000 yuan of rental housing Attract talent while promoting rental housing. 2020 attraction subsidy to fresh college graduates for up to six years. Confirmed
26 February Guangdong Dongguan Accumulation - Allows applicants to convert commercial loans to home Increased use of home accumulation fund in 2020 fund loan accumulation fund loans; home purchases has moderate impact on - Removes the small unit (<90sq.m GFA) requirement for demand in lower-mid-end segments. homes applicable for 30-year home accumulation fund loans; Confirmed - Increases home accumulation loan quota by up to 20% for qualified applicants, capped at 1.2mn yuan for their first home and 0.8mn yuan for their second home; - Eases application requirements and shortens approval time. 25 February CBIRC National General Chief Risk Officer at the CBIRC said the housing policy is Overarching housing policy remains basically 2020 not adjusted or changed at the moment, but regulators unchanged but regions with weaker property Confirmed will keep monitoring the property market while sticking market could get supported by policy easing at to “one city one policy”. the local level. 25 February Henan Zhengzhou Sales Requests an orderly resumption of property viewings. Gradual resumption of home sales. 2020 Confirmed
24 February Henan Xinxiang Land transfer, - lowers deposit rate to 20% for land bids and Mitigate cash constraints of developers amid the 2020 presales, home - allows installment payments for land purchases virus outbreak. accumulation, -presales of certain projects can start earlier Confirmed mortgage - banks encouraged to lower interest rates for individual Local banks unlikely to have much room for home mortgages mortgage rate cuts unless PBOC eases liquidity significantly.
54
Province/
Status Date ministry City Related Policy Details Impact 24 February Zheshang Bank National Down-payment Lowered down-payment ratio from 30% to 20% for Boosts real housing demand in cities without 2020 housing loans of first-home purchases in cities without HPR. purchases restrictions. The bank said the 20% is the minimum ratio and will be Other banks might also cut the ratio but larger determined jointly with other criteria, not necessarily state-owned banks are more likely to hold the applying to all applications. cut unless top policymakers send a loosening Confirmed signal.
The adjustment is within the ruling of the PBOC and CBIRC (then CBRC) in February 2016, when they allowed a 5bp reduction in the minimum down-payment ratio of 25% for housing loans of first-home purchase in cities without HPR. 23 February Guangxi Nanning Accumulation Allows home accumulation fund loans to be used for Limited increases in second-home sales, 2020 fund loan second-home purchases. particularly those of cheaper and smaller units, Confirmed which are more likely to be bought with accumulation fund loans. 21 February Henan Zhumadian Accumulation Lowers down-payment ratio of home accumulation fund Should boost home sales, especially low-mid- 2020 fund loan, loans from 30% to 20% for first-home purchases, and end segments. (Revoked on 5 March, see above) subsidy increases the maximum loan quota from 450,000 yuan to 500,000 yuan. Confirmed Qualified talent, college and secondary school graduates, and migrant workers can get a subsidy of 200 yuan, 150 yuan, and 100 yuan per sqm respectively for purchasing the first home. 20 February Jiangsu Nanjing Sales Gradually resumes on-spot sales activities, promotes Pushes for resumption of home sales. 2020 online appointment and carries out project openings Confirmed and unit selection in batches until end of March.
20 February Jiangsu Suzhou Hukou, talent Xiangcheng district lowered requirements for university- Increases potential home demand; tweaks 2020 attraction educated applicants, and allowed qualified talent with housing policy to better fit local demand. Confirmed advanced skills to buy a home without hukou or social security requirements. 20 February PBOC General Restated that real estate would not be used as a Local policy divergence will remain. 2020 short-term means for stimulating the economy Confirmed Reiterated that housing is not for speculation, Recent measures by local governments are meant to support developers as enterprises instead of the property market. 55
Province/
Status Date ministry City Related Policy Details Impact Pledged to accelerate the establishment of a long- term mechanism for real estate financing based on February 5-year term LPR fell only 5bp, which local conditions didn’t follow the 10bp drop in 1-year term LPR, likely signaling that a broad loosening of property policies is unlikely. 19 February Jiangsu Suzhou Land transfer, The local NRP bureau allowed developers to follow a Eases cash constraints for developers. 2020 presales more relaxed timetable on land payment and construction on land purchased from the local government.
Adjusted the rules on presale requirements, to allow presales to start an earlier point in the construction Confirmed schedule by a number of days according to the level of Covid-19 threat in each district.
The bureau clarified later that presale requirements will still be specified in land bids, adding that the adjustment is fine-tuning and should not be mistakenly interpreted as a broad cancellation of presales requirements. 19 February Guizhou Sales Prohibits restrictions on work resumption at property Targets to resume sales activities and support 2020 developers and supports developers to fully return virus-hit developers. production by 29 Feb. On-spot project viewings and other sales activities Confirmed should be arranged with flow control and in different time periods. Online appointment and sales platforms are encouraged. Real estate development related fees levied by local MOHURD can be deferred, reduced, or exempted. 19 February MOHURD Administration Looks to establish and improve online work systems for Eases and streamlines project approving 2020 reviewing and approving construction projects, process, accelerates construction progress. Confirmed comprehensively strengthen project coverage, and push Some of the online procedures, if not all, are for online project management for submitting, likely to remain in place after the virus outbreak. processing, tracking, supervising, and reporting. 18 February Guangdong Zhongshan Talent Pledges to provide fresh college graduates who apply Effect might be limited as higher-tier cities in the 2020 attraction for a hukou in the city with social housing, of which the same PRD region are more attractive to Confirmed employed graduates can get social security insurance graduates and talent. That said, demand could subsidy for three years. gradually improve with the integration of transportation links in the region. 56
Province/
Status Date ministry City Related Policy Details Impact Fresh college graduates who start a business can get start-up subsidy up to 10,000 yuan, employment subsidy up to 30,000 yuan, and rent subsidy up to 6,000 yuan per year for three years, as well as a 300,000 yuan loan with preferential interest rates.
Qualified talent can get an 800-5,000 yuan monthly allowance and 100,000-2mn yuan subsidy for buying a home. Qualified postgraduates can obtain an extra of 300,000 yuan subsidy for R&D and living. 17 February MOF Rental housing, The Minister published an article vowing to implement Increases supply of rental housing and social 2020 social housing, the long-term administration mechanism for the real housing. urban estate market, deeply carry out pilots of central budget Confirmed renovation backed rental housing market development and urban renovation, and push for the improvement in the basic housing security system. 17 February Zhejiang Ningbo Presales The limit of developers’ withdrawal and use of presales Accelerates presale cycles, eases cash flow for 2020 funds will not be restricted as long as it’s for the developers. corresponding project. The minimum GFA for each batch of presales is adjusted to 20,000 sqm from 50,000 sqm, and the minimum Confirmed interval between presales is reduced to 2 months from 3 months. One-to-one project viewings can be conducted given that virus prevention measures are strictly followed. All the measures will be effective until 31 Dec, 2020. 15 February Shaanxi Public rental Lowers rent for tenants of public rental housing. Pushes Mainly looks to meet yearly targets for urban 2020 housing, urban for resumption of urban renovation projects. renovation. Minimal impact. Confirmed renovation
14 February Tianjin Purchaser Non-local buyers can provide social security proof Encourages home purchases when employers’ 2020 eligibility within three months after the virus outbreak when they contribution to social security insurance is Confirmed purchase a home in the city. waived amid the virus outbreak.
14 February Qinghai Shantytown Plans to redevelop 11,324 shantytown units this year, Impact on home sales depends on how 2020 redevelopment ensure concrete work can start in Q1, and start at least compensation is conducted. Could increase sales Confirmed 50% of the constructions. if monetary compensation is at the same or higher level as last year.
57
Province/
Status Date ministry City Related Policy Details Impact The target was 10,000 units last year.
13 February Yunnan General Targets to increase real estate investment by 10% or Accelerates real estate investment and sales. 2020 above while promoting the steady and healthy development in the property market. Confirmed
Streamline presale approval process, shortening turnaround time to one day. 13 February Jiangxi, Construction Promote the use of online platforms for the submission Aims to resume construction in a timely fashion. 2020 Shandong, and approval of engineering and construction projects Streamline project approval process. Confirmed Shanxi, Tianjin amid the virus outbreak.
12 February Jiangxi, Anhui Presales/ HPR/ Provincial real estate associations called on city Local governments likely to test the waters of 2020 Price cap/ governments to permitted temporary market support measures Talent - Accelerate registration of home transactions amid Covid-19 crisis, with the potential to boost attraction - Relax presales restrictions for short-term sales and market sentiment. - Appropriately relax price caps and HPR Unconfirmed - Step up incentives for qualified talent in terms of hukou and subsidies for home purchases.
The Anhui association also called for lower down- payment ratio and transaction taxes and fees. 12 February Zhejiang, Hangzhou, Land transfer/ Allow land payments to be postponed. Mainly aims to alleviate financial pressure of 2020 Guangdong, Jiaxing, Construction/ Some cities allow delays in construction starts or developers. Encourages land bids. Jiangsu, Shaanxi, Zhongshan, Presales finishes. Jiangxi Tianjin, Confirmed Wuxi allows presales on 25% completion of investment. Local governments will be keen to maintain land Nanchang, Xian and Nanchang lowered deposits for land bids to sales revenue as much as possible given fiscal Shanghai, 20% of the starting value for a certain period. outlays related to virus prevention and related Wuxi, Xian support measures such as SME tax rebates. 12 February Guangdong Shenzhen Accumulation Allows quarantined coronavirus patients and suspected Minimal impact. 2020 fund loan cases to postpone repayment for accumulation fund Confirmed loans.
11 February Henan Zhengzhou Construction/ Allows developers to resume office work from 24 Delays sales. 2020 Sales February upon application and approval. Sales branches Confirmed remain to be closed until further notice.
58
Province/
Status Date ministry City Related Policy Details Impact 10 February Shaanxi, Anhui, Construction Allow qualified construction sites to resume work amid Aims to for construction resumption as early as 2020 Yunnan, Beijing, the coronavirus outbreak. possible, given the contagion risks. Confirmed Guangzhou
6 February Guangdong Shenzhen Sales Suspended in-person sales activities and property Short-term drop in home sales, made up by 2020 viewings until further notice for virus prevention. sales later. Confirmed
5 February Jiangsu Nanjing Regulation Land transfer contracts may be terminated and land use Intends to contain illegal land uses and better 2020 rights forfeited for unauthorised conversions of control the property supply. commercial/office projects into residential-like properties, e.g. serviced apartments. Confirmed Commercial/ office projects with more than 5,000 sqm of GFA above ground can build serviced apartments up to 30% of the said GFA, with at least 45 sqm for each unit. 5 February Beijing Social housing Construction of key projects including social housing Aims to reduce impact from the coronavirus on 2020 should start on schedule despite coronavirus outbreak. social housing supply. Confirmed
5 February STA VAT Unfinished real estate projects that are purchased and Encourages acquisition and development of 2020 finished by developers and sold under their names can unfinished projects (e.g. suspended due to Confirmed be regarded as “old projects” and subject to 5% VAT. bankruptcy), which would accelerate consolidation in the sector and increase supply. 4 February Multiple Land bids Shanghai, Shenzhen, Wuhan, and Chongqing postponed Delays land sales. 2020 cities land bids amid coronavirus outbreak. Confirmed
3 February Housing Fund Home Coronavirus patients may draw on home accumulation Minimal impact amid short-term fall in home 2020 Administration accumulation funds for medical expenses. sales owing to the outbreak. Centre fund Frontline employees in virus prevention and control such as doctors and nurses may apply for home Confirmed accumulation fund loans with preferential credit policies.
Enterprises affected by the virus can postpone home accumulation fund contribution. 59
Province/
Status Date ministry City Related Policy Details Impact 2 February Multiple regions Construction Local MOHURDs at Hebei, Henan, Hainan, Shaanxi, Slows project progress. 2020 Shanghai, among other regions, strengthen access Confirmed control at construction sites and/or postpone construction resumption until 10 Feb for virus prevention. 2 February MOHURD General Promote online platforms in applying for property Minimal, short-term impact. 2020 ownership certificates or withdrawal of home Confirmed accumulation funds.
31 January Multiple regions Sales Local MOHURDs, real estate industry associations, and Delays sales (but doesn’t warrant outsized sell- 2020 developers in many regions including Guangxi province, offs in developer stocks considering these sales Mianyang, Ganzhou, Tengchong, Nanchang, Chongqing, should come after the crisis). Chengdu, Yichang, Wuhan, Fuzhou, Kunming, as well as Mostly some parts of Nanjing and Guangzhou, etc. suspended/ Impact will vary according to how affected each confirmed restricted project viewings and other on-site sales region is by the outbreak and local government activities in a bid to contain the coronavirus outbreak. countermeasures.
Some developers are said to turn to online sales channels, but with little success. 29 January PBOC/CBRIC Liquidity Ensure sufficient short-term liquidity in the interbank Reduces risk of cash crunch, defaults. 2020 market when it reopens on 3 February
Call on banks to allow mortgage and credit card borrowers to delay repayments if their income has been affected by the virus outbreak.
29 January Hunan Changsha General The local MOHURD requested that all developers and Delays project construction and sales. 2020 agencies should only resume business after 8 February. Confirmed
27 January Shaanxi Developer The provincial CBIRC fined Changan Bank 460,000 yuan Enforces existing regulation in order to control 2020 financing for: the property market. - insufficient supervision of use of credit cards Confirmed to buy real estate - providing loans illegally used for land purchase.
60
Province/
Status Date ministry City Related Policy Details Impact 26 January National Sales The China Real Estate Association calls on developers to Delays sales if developers act accordingly. 2020 suspend all sales activities at sales offices until the Confirmed outbreak is over.
23 January Hubei Wuhan Rental housing The local MOHURD issues a three-year plan aiming to Increases rental housing supply. 2020 build 70.2mn sqm or 829,000 units of housing from 2020 to 2022 - includes 222,500 units of market-priced rental housing By implication 575,000 units planned are and 31,500 units of public rental housing. housing for sale, though no breakdown on social Confirmed housing and ordinary housing is given New constructions of rental housing will be prioritised in districts with high demand and home prices, industrial parks, college areas, and places near subway stations. 22 January Hainan Haikou Regulation/ The local MOHURD announced that developers that Aims to accelerate home supply to the market. 2020 Presale deliver homes late may face penalty restrictions in other Confirmed project approvals and in using presale funds.
22 January Jiangxi Public rental To conduct a two-month investigation into and Enforces existing rules in a bid for healthy 2020 housing clampdown on public rental housing violations, development of public rental housing. Confirmed including information verification and legal enforcement. 22 January Premier Li Urban Premier Li pledges to scale up urban renovation and It likely signals that urban renovation might 2020 renovation likens it to shantytown redevelopment in improving partly replace shantytown redevelopment that is Confirmed living standards and driving growth and investment. due to wind down this year, with any extension likely to be on a smaller scale.
20 January Guangdong Guangzhou Rental housing Passed a plan for social rental housing development, Increases rental housing demand from low- 2020 looking to build small (30sqm GFA) units for rent at 50- income residents. Confirmed 70% of market rental levels for new migrants and newly employed graduates. 20 January NDRC Hukou Pledges to complete urban hukou registrations for the City hukou reforms are part of the emerging 2020 100mn rural migrants and other residents this year, a contest for talent that has heated up in the last Confirmed target set in the urbanisation strategy for 2014-2020. year or two. Winners and losers in this will also affect local property markets. 19 January State Council National- General Published guidelines looking to strictly prohibit large- Aims to prevent property speculation in state- 2020 level new scale and disorderly real estate development, ban backed new districts. Confirmed districts speculative activities, support reasonable housing
61
Province/
Status Date ministry City Related Policy Details Impact demand, and implement job-housing balance in national-level new districts.
19 January Hainan HPR, social Provincial MOHURD to keep province-wide HPR this Continues existing policies and increases social 2020 housing year and work on long-term property market control housing supply. Minimal impact. mechanism.
Confirmed It will pushing forward with the construction of affordable housing, resolving residential demand for local residents, talents, and employees in the education and healthcare sectors. 18 January Xinjiang Public rental Aims to newly construct 35,000 units of public rental Increases low-cost housing supply. 2020 housing/ housing, distribute rental subsidies to 4,000 households, Confirmed Shantytown and redevelop at least 73,000 units of shantytown redevelopment homes this year. 18 January Sichuan Chengdu Social housing The local real estate agency association bans agents Enforces existing rules in a bid to regulate the 2020 from providing services for subletting social housing. housing market. Confirmed
17 January Sichuan Approval Plans to launch an administration system for processing Shortens approving time and simplifies 2020 and approving construction projects. procedures for developers. Confirmed
16 January Multiple Various 20 provinces released annual work reports, mostly Rental housing/social housing are a top policy 2020 focusing on rental housing, urban renewal, hukou priority in a bid to provide affordable housing Confirmed easing, support for low-income households, and shared- alternatives to the ordinary housing sector. equity housing. 16 January Shanghai Shared-equity Revised shared-equity housing rules to allow qualified Increases shared-equity housing demand. 2020 housing non-local households to purchase shared-equity Confirmed housing, effective from 1 Feb.
16 January PBOC Developer Zou Lan, head of Financial Market Department at the Continued prudential credit policy towards real 2020 financing PBOC, said the proportion of real estate in new credit estate, not a sudden squeeze. Confirmed resource should be strictly controlled.
62
Province/
Status Date ministry City Related Policy Details Impact 15 January Sichuan Chengdu Public rental Issued subsidy standards for public rental housing for Increases public rental housing demand. 2020 housing lower-income households with local hukou, employees Confirmed in industry function areas, qualified migrant workers, and newly employed graduates. 14 January Guangdong Hukou Provincial governor stated in the government work Increases population inflows and home demand 2020 report that Guangdong will remove hukou restrictions in in tier 2/3 cities in the region, such as Foshan, Confirmed all cities other than Guangzhou and Shenzhen. Dongguan, Zhongshan, and Zhuhai. Guangdong is expected to continue to be a magnet for people nationwide. 12 January Beijing Social housing/ Chen Jining, mayor of Beijing, said the city would build Increases social/rental housing supply. 2020 rental housing 45,000 units of social housing this year and accelerate Confirmed the construction of rental housing on collective land near key industrial parks and along rail transit lines. 10 January Hubei Wuhan Resale Removed resale restrictions on second-homes and in Increases second-home sales in the area. 2020 restriction certain areas of the Changjiang New District, which will Confirmed adopt the same HPR as in the central districts.
9 January 2020 Jiangsu Suzhou Talent Drafted hukou policy revision that would relax hukou Limited increase in short-term demand if put attraction requirements by allowing qualified talent to obtain a into effect. hukou before employment, removing/relaxing hard Suzhou has already preferential policies for Confirmed requirements on social security contribution records, talent homebuyers in two districts. The other and easing age limit. districts will benefit more from the relaxed hukou requirements. 8 January 2020 Guangdong Guangzhou Shared-equity The local MOHURD released guidelines on qualifications Part of localised, long-term market control housing for shared-equity housing measures, aiming to provide more supply of Applicants holding a local hukou for 10 years, affordable housing. or a bachelor’s or higher degree, or certain talent/professional qualifications, may apply without a hukou Single applicants should be at least 30 years old; no age restrictions on married applicants Confirmed A unit can be sold between two eligible owners/applicants after two-year holding period Owners have equal rights to social welfare benefits as full-equity home owners Newly built shared-equity housing on land with home price caps may be registered as commodity housing (allowing resale to broad 63
Province/
Status Date ministry City Related Policy Details Impact market) if the price cap is higher than 0.85x prices of similar commodity housing in the same area
8 January 2020 Beijing Accumulation The local home accumulation fund administration Simplifies accumulation fund application and fund centre set up an online platform for applicants to apply increases use of this cheaper source of funding Confirmed for accumulation fund withdrawals, for which the for home purchase. transfer can be completed in a day or two. 8 January 2020 Guangdong Shenzhen Public housing Targets to start construction on 80,000 units of public Increases low-cost supply to the market. The housing and supply 32,000 units in 2020. prices are said to be at 50-60% of market level Confirmed for a given locality.
6 January 2020 Shandong Jinan Presale Replaces on-site checking with notification/ Shortens presale approving time. Accelerates commitment of construction progress in the approving development & sales cycle for developers. Confirmed procedures for granting presale licenses.
5 January 2020 Guangdong Dongguan Talent Offers qualified talent subsidies for purchasing or Limited increase in demand. attraction renting a home in the city. Talent can enjoy the Confirmed equivalent housing policies as local residents.
4 January 2020 CBIRC Financial risk Orders banking and insurance institutions to stick to Maintains existing policies. management “homes are for living in, not speculation”, prohibit funds Confirmed from illegally entering the property market, prevent excessive rises in the household debt ratio. 4 January 2020 Hebei Tangshan Resale Newly built homes in three central districts (Lunan, Less severe than it appears at first glance. It is restriction Lubei, and High-tech districts) may only be resold 42 said to generally take three years or even more months after online contract signing. than 42 months between online contract signing (long before completion and handover) and Confirmed resale anyway.
Tangshan recorded the fastest MoM new home price increase in Dec among 70 cities in the NBS index. 3 January 2020 Beijing Affordable Cancelled the requirements to provide documentation Limited impact as it just simplifies the housing of meeting income and home ownership criteria for application but doesn’t relax the criteria. Confirmed households applying for affordable housing.
64
Province/
Status Date ministry City Related Policy Details Impact 2 January 2020 Chongqing Property tax Increased the home price threshold for property tax to Limited impact because the property tax covers 19,587 yuan/m2 for 2020 from last year’s 17,630 a small share of housing – mainly new high-end Confirmed yuan/m2. housing units in 9 urban districts priced at least twice the market average for the area.
2 January 2020 Guangdong Guangzhou Shared-equity Provide households living in (lower cost) shared-equity Increases demand for shared-equity housing as housing housing with equal social welfare benefits as a more affordable alternative to full-equity Confirmed households living in fully owned properties. housing for first-time buyers.
31 December Guangdong Guangzhou Talent The local MOHURD requires that land sold for housing Increases supply of affordable housing over the 2019 attraction, projects include 30% buildable GFA allocation for talent long term, while reducing new supply of public rental apartments or public rental housing in the city’s main ordinary housing. As such, unlikely to resolve housing, land districts, and at least 10% in other districts. structural undersupply situation in core city. Confirmed bids Huangpu district will subsidise 50% of market rentals to qualified talent and Nansha district will offer a 30% rental subsidy. 31 December Guangdong Accumulation The provincial MOHURD launches the Guangdong-Hong Improves labour mobility within the province, by 2019 fund Kong-Macau Greater Bay Area home accumulation fund improving accumulation fund portability. Small Confirmed information sharing platform, enabling cross-city use of boost to housing demand in cities with attractive accumulation fund in the region without the provision jobs markets (Shenzhen, Guangzhou especially). of accumulation fund contribution proofs. 28 December PBOC LPR Banks to set interest rates on outstanding mortgages Limited impact in the short term, but could 2019 with floating rates with reference to the LPR instead of lower mortgage repayments for home purchases the benchmark rate. if the LPR trends down in future.
Financial institutions and clients decide between an Confirmed “LPR + basis points” rate and a fixed one from 1 Mar to 31 Aug, which will then be renewed on 1 Jan of each year.
Mortgage rates this year should be maintained at the same level after the switch. 27 December Zhejiang Wenzhou Talent Offers to sell homes with 30% cut to the registered price Aims to attract/keep graduates and skilled 2019 attraction to qualified college graduates who work full-time in workers. Limited increase in demand. primary/ secondary schools, kindergartens, healthcare Confirmed institutions, local enterprises or private non-enterprise institutions, and qualified professionals in designated sectors. 65
Province/
Status Date ministry City Related Policy Details Impact
Offers to rent homes with 70% reduction in rent to qualified professionals in designated sectors with talent shortage. 25 December Jiangsu Nantong Resale, land Certain homes with sales prices significantly lower than Aims to reduce downward home price pressure. 2019 bids nearby properties due to low land cost may only be Short-term superficial measure and more resold five years after obtaining the property ownership market support policies may be needed. Confirmed certificate.
Developers who have major quality issues or poor credit records are restricted from participating land bids. 25 December MOHURD, MPS, Rental housing Opinions on regulating the rental housing market would Increases rental housing supply. 2019 SAMR, CBIRC, allow unused commercial/office buildings and CAC industrial buildings to be converted to rental housing if Provides commercial property owners with an building safety, fire protection, and air quality meet option if local commercial property market is Confirmed requirements, prevent financial risks related to home very weak. However, residential yields are renting loans, and establish rental housing platforms usually lower than commercial rental yields in and long-term management mechanism at local China. governments. 24 December Yunnan Zhaotong Accumulation Increase the maximum accumulation fund loan from Increases use of accumulation fund loans in 2019 fund loans 300,000 yuan to 500,000 yuan for double-employment home purchases. Confirmed households and from 150,000 yuan to 300,000 yuan for single-employment households. 23 December Jiangxi Public rental Pledges to provide public rental housing for newly Encourages public rental housing demand 2019 housing employed residents and migrant workers, particularly public service workers, young doctors and teachers; Confirmed orders lower-level governments to introduce subsidies before end-Jun 2020 for qualified applicants who are in the waiting list for public rental housing. 23 December MOHURD Overall Held national work conference and set out 2020 work Mainly sticks to existing policy settings for the 2019 plan focusing on the followings, among other tasks: housing market; stresses development of rental - stabilise land prices, home prices, and housing expectation Confirmed - establish and improve the adjustment and control system for the real estate industry - improve the urban housing security system, those including public rental housing for difficult groups, shantytown redevelopment,
66
Province/
Status Date ministry City Related Policy Details Impact urban renovation, as well as home accumulation fund reforms and enhancement - foster and develop rental housing, resolve residence issues for new residents and other groups, cultivate home renting enterprises in larger scale - basically establish a national approval and management system for construction projects 20 December PBOC LPR The December LPR remained at the same level in No impact 2019 November. Confirmed
20 December Guangdong Guangzhou HPR Allows non-hukou residents to purchase a home in Increase demand in this outer urban district of 2019 Huangpu district so long as they have worked for half a Guangzhou year in the district.
Qualified top talent and their parents, parents-in-law, Confirmed and adult children may buy a home in the district.
Hong Kong and Macau residents, and qualified Singaporean residents may enjoy equal treatment as local residents when purchasing a home in Huangpu district. 18 December Guangdong Shenzhen Regulation, The local MOHURD suspended certain second-hand Controls prices without dealing with underlying 2019 price control home transactions, claiming malicious collusion among supply scarcity issues. home sellers to drive up sale prices. Confirmed The department reiterated the city’s target to cap first- hand and second-hand home price increases at 5% yoy this year. 18 December Guangdong Guangzhou HPR Removed requirements of study, employment or Slightly increases demand, especially in high-end 2019 residence proofs for Hong Kong and Macau residents to market. Confirmed purchase a home.
18 December National Overall Vice Premier Han Zheng chaired a MOHURD meeting, Keeps tight control over property market while 2019 stressing again the mantra ‘housing is for living, not policy divergence would continue at local levels. Confirmed speculation’, and that real estate should not be a means for short-term economic stimulus.
67
Province/
Status Date ministry City Related Policy Details Impact Han noted that the current property market is generally stable, and reiterated the idea of cities setting local property policies in accordance with local market conditions. 13 December Guangdong Guangzhou Talent Top talent and Hong Kong and Macau residents may Increase demand in this outer urban district of 2019 attraction enjoy the same treatment as local residents when Guangzhou. purchasing a home in Nansha district. Confirmed Other qualified talent may purchase the first home in Nansha district without restrictions on hukou, social security, or income tax payment. 12 December Guangdong Shenzhen Sales The local MOHURD scrapped a ban on the sales of Increases commercial apartment supply and 2019 restriction newly built commercial apartments (商务公寓), which sales in the city. This should amount to an are residential units built on land designated for effective increase in housing supply – in a commercial or industrial property. market that is in a chronic undersupply The restriction was issued 18 months before ago to only situation. allow such apartments to be leased out, not sold. Confirmed The restriction on resale of commercial apartments within 10 years of purchase remains in place. This should deter short-term investment demand and will make such properties less attractive than pure residential apartments. 12 December Jiangsu Zhangjiagang Sales Suspended the cancellation of resale restriction after Minimal impact with existing policies remain in 2019 restriction just one day. place. Confirmed The sales restriction requires that payment of a 5.5% VAT on resales of property within two years of purchase. Indicates the limits on local policy easing (which have not been spelt out clearly). 12 December Guangdong Guangzhou Shared-equity Plans to introduce guideline on talent apartments by Aims to increase affordable housing supply for 2019 housing, talent end of this year and accelerate study of shared-equity targeted groups. Confirmed attraction housing policies.
12 December Central Overall The CEWC pledges to step up housing security for Addition of “comprehensively implement” to the 2019 Committee, difficult groups in large cities, step up urban renewals, “one city, one policy” wording indicates more State Council and stress on urban renovation and rental housing policy divergence among cities. Confirmed development. It reiterates to insist on “housing is for living not speculation” and will comprehensively Addition of “stabilise land price, home price, and implement “one city, one policy” and a long-term expectation” suggests that local policy may be deployed to prevent price falls, not just price 68
Province/
Status Date ministry City Related Policy Details Impact adjustment and control mechanism in order to stabilise rises. land price, home price, and expectation.
12 December Sichuan Chengdu Public rental Steps up public rental housing coverage for workers in Aims to make rental housing affordable for 2019 housing the public service and industrial sectors, increases targeted groups to retain keep them in the city. Confirmed subsidies, and extends subsidy term, in order to secure residence for lower-income households and new residents. 12 December Sichuan Chengdu Rental housing Released a guideline to further develop and standardise Increases rental housing supply. 2019 the rental housing market - encourage villages to rent out qualified units on Confirmed collective land - support redeveloped shantytowns and renovated old communities to be used as rental housing - waive taxes on individual rental income before 2022 11 December Hunan Changsha Price control Published a notice that breaks down the house into This policy might have been intended to boost 2019 three parts: cost, profit, and tax; and limits profit the local land market by offering developers a margins to 6-8% on average. But the notice is cancelled guaranteed, albeit low, profit margin. It is Unconfirmed just one day after publication. unclear why it was withdrawn, though it would have been a backwards step by reducing the influence of market forces. 11 December Henan Zhengzhou Hukou Shortened the required time for holding a resident Increases population inflow to the city and 2019 permit or making social security payments in central supports housing demand in central and other districts for applicants and their spouse, parents, and districts. children to obtain a hukou.
Confirmed Housing tenants who have lived in central districts for at least one year may now apply for a hukou.
Removed all restrictions for applicants in non-central or prefecture-level districts. 5 December Guangdong Rental housing, The provincial MOHURD will study and formulate the Supports the development of rental housing 2019 regulation 2020 Work Plan for regulating its property market, with market. a focus on strengthening supervision and management Confirmed on property agencies. The ministry also reiterates further pushing for rental housing consumption and accelerate rental housing legislation.
69
Province/
Status Date ministry City Related Policy Details Impact 5 December Guizhou Guiyang, Public rental The provincial MOF and MOHURD allocated nearly Increases public rental housing supply. 2019 Zunyi housing 3.5trn yuan in order for Guiyang and Zunyi to build, Confirmed purchase, and reconstruct public rental housing.
5 December Henan Zhengzhou Accumulation Increases the maximum loan from 600,000 yuan to Mild support for home sales using accumulation 2019 fund loans 800,000 yuan for the first application of qualified fund loans. Confirmed families, and from 400,000 yuan to 600,000 yuan for their second application, effective from 1st January 2020. 4 December Hainan Accumulation Sets the minimum rates of accumulation fund loans for Slight tweak to support genuine demand and 2019 fund loans second-home purchases or second-time loan prohibit speculation. Unconfirmed applications at 1.1 times of that for first-home purchases or first-time applications. 4 December Sichuan Chengdu HPR Allows qualified residents in the High-tech Zone Increases sales in specified districts. 2019 Southern District to purchase a home in Tianfu New Unconfirmed District and other six districts.
3 December Heilongjiang Land bids, The provincial MOHURD and MNR, among other four Limits cash-strapped smaller developers in 2019 presales departments, jointly ban developers from using financial acquiring land and developing property projects. loans or funds raised from capital markets in land bids. Confirmed Presales of newly built commodity housing will only be approved when progress of multi-story buildings reaches ceiling and that of high-rises reaches two-thirds. 2 December Guangdong Shenzhen HPR Reactivates property sales in the Shenzhen-Shanwei Increases sales in the zone. No impact in the city 2019 Special Cooperation Zone on 2 Dec, allowing each due to the long distance from the zone. household to purchase two homes and single occupants to purchase one home in the zone. Such homes are not Confirmed allowed to be resold within five years from obtaining the housing certificate. Homes purchased in other districts in Shenzhen are not counted in determining home purchase eligibility in the zone. 30 November Guangdong Foshan Talent The local MOHURD and MOHRSS scrapped Impact depends on the willingness of talent to 2019 attraction requirements on hukou, personal income tax, and social move to the city instead of neighbouring Tier 1 security payment for qualified talent who have a cities of Guangzhou and Shenzhen. Confirmed bachelor degree or secondary or above professional qualifications when they purchase their first home in the city.
70
Province/
Status Date ministry City Related Policy Details Impact 28 November Guangdong Foshan HPR Drafted a housing development plan 2018-2022. The Likely to increase housing supply in the city. 2019 plan pledges to build a coordinated regional housing Confirmed development system to attract talent and industry from Guangzhou and Shenzhen. 26 November Guangdong Shenzhen Mortgage China Construction Bank Shenzhen branch clarified that If confirmed, only limits local home sales in the 2019 loans it is normal to have tight quota on mortgage loans at the short-term. end of the month (Nov), and will continue providing Unconfirmed mortgage loans in December. It was previously reported that some banks suspended mortgage loans in Shenzhen until next year. 26 November Guangdong Guangzhou Rental housing Drafts subsidy plan for rental housing development. Increases rental housing supply 2019 - Ordinary rental housing and dorms built on collective land and state-owned construction land will be subsidised at 750 yuan and 800 yuan per sqm respectively; Confirmed - Qualified urban renovation and rental housing conversion projects and will be subsidised at 300 yuan and 350 yuan per sqm respectively; - Rental housing offered to public services employees can get 1,000 yuan per sqm subsidy 24 November Guangdong Guangzhou HPR Records of personal income tax payments and social Small tweaks to encourage genuine demand. 2019 security contributions can substitute each other for non- Minimal impact. Unconfirmed hukou residents if either records of payments or contributions are incomplete. The rule applies to home purchases in six districts. 23 November Beijing Public rental Released demonstrative text for public rental housing Regulates public rental housing market. 2019 housing contracts, adding and clarifying tenants’ rights and Confirmed obligations and detailing disciplinary actions on violations of public rental housing uses. 22 November Guangdong Qingyuan Accumulation Adjusted accumulation fund loan rules allowing a new Small tweaks. Limited impact. 2019 fund loans home purchased by applicants who sold their first home and paid off mortgage debt as a first home purchase. Confirmed This entitles the person to lower interest rates and a higher loan quota as part of their housing accumulation fund loan. 21 November Anhui Hefei Rental housing The local MOHURD fined 23 home rental agencies for Enforces regulation of the rental housing 2019 market violations and investigated another 34 agencies. market. Confirmed
71
Province/
Status Date ministry City Related Policy Details Impact 21 November Beijing Public rental Signed an MoU with the PBOC to include public rental Regulates public rental housing market. 2019 housing housing violations into the financial system credit Confirmed platform for the first time.
21 November State Council Tax The State Council extended individual income tax Maintains current tax reductions. Limited 2019 deductions including for housing loan interest payment impact. Confirmed and rent.
20 November Shanghai Talent The Shanghai FTZ Lingang New Area eased Increases demand for affordable housing and 2019 attraction, requirements for qualified talent to obtain a hukou, will rental housing in the Lingang New Area. Hukou, public supply price-capped affordable housing, and offers Confirmed rental housing, subsidies for public rental housing affordable housing 20 November PBOC LPR Lowers the five-year or above LPR for the first time by Slightly lowers home mortgage. But impact is 2019 5bp. limited. Confirmed
20 November Hebei Qinhuangdao Accumulation Tightened rules on using accumulation funds so that Tightens accumulation fund applications. 2019 fund withdrawal is no longer allowed if applicants (or their spouses) own a property in another city.
Lowers the maximum amount of accumulation fund Confirmed loans from 600,000 yuan to 400,000 yuan.
Disqualifies applicants who have more than six months of overdue payment records in the 24 months prior to application. 19 November Guizhou Public rental Broadened eligibility for public rental housing to include Increases public rental housing demand and 2019 housing qualified domestic help supply. Confirmed Plans to increase public rental housing supply in industrial parks for newly hired employees and migrant workers. 14 November Guangdong Shared-equity Local MOHURD guideline allows urban non-property Increases demand for shared-equity housing. 2019 housing owing households, migrant workers with stable employment, and Hong Kong and Macau residents who Confirmed live in Guangdong to apply for shared-equity housing. It also allows such housing to be resold five years after obtaining the property ownership certificate. 72
Province/
Status Date ministry City Related Policy Details Impact 13 November Hunan Changde Accumulation Strengthens examination of accumulation fund Enforces existing regulation. 2019 fund withdrawal applications; looks to blacklist and restrict Confirmed applicants who violate the rules.
13 November Guangdong Guangzhou Public rental Clarifies that households previously eligible for Increases demand for public rental housing. 2019 housing economically affordable housing will be supported by Confirmed public rental housing or other social housing.
12 November Guangdong Shenzhen Taxation Scraps certain sales tax on second-hand properties with Mainly increases second-hand home sales but 2019 floor area larger than 144m2 and have been owned for could also encourage new home sales, by Confirmed at least two years. lubricating the upgrade pipeline.
12 November Jiangxi Accumulation Local MOHURD bans people from applying for Regulates accumulation fund loan application in 2019 fund loans accumulation fund loans for up to five years if they a bid to support appropriate uses. Confirmed provide false information in application.
11 November Various regions Rental housing Local MOHURDs in Jilin, Inner Mongolia, Anhui, and Aims to regulate the rental housing market. 2019 Wuhan of Hubei province, investigate rental housing Confirmed agencies for market violations
8 November Guangxi Hukou Ease up urban hukou application process by removing Aims to increase urbanisation rate. Increases 2019 requirements for social security participation and years property demand. Confirmed of residence and employment.
8 November Anhui Ma’anshan Presales, - Permits presale at a earlier stage of construction - Eases pressure on developers and accelerates 2019 developer when a project is half completed. sales. financing Confirmed - Lowers the required presale fund for custody. - Actual sale price should be at least 90% of the registered price. 8 November Jiangsu Nanjing Talent Removes hukou requirements for qualified talent to Limited impact. 2019 attraction purchase a home and gives them priority in unit Confirmed selection.
7 November Beijing Shared-equity Plans to build 3,000 units of shared-equity housing and Increases shared-equity housing and rental 2019 housing, public 2,000 units of public rental housing in Changping housing supply. Limited impact as it is in Confirmed rental housing district. suburban area.
73
Province/
Status Date ministry City Related Policy Details Impact 7 November Various regions Rental housing Various regions including Shanghai, Shenzhen, Xiamen, Enforces regulations in a bid to push forward 2019 and Nanning clamp down market violations targeted at with rental housing development. Confirmed rental housing agencies.
6 November Guangdong HPR Exempts the requirement of residence, study, or Limited increase in property demand, likely 2019 employment proof and income tax and social security weighted towards high-end segment. Confirmed payment records for Hong Kong and Macau residents to purchase a home in Guangdong province. 5 November Shanghai Public rental Qualified tenants of public rental housing may exchange Increases public rental housing demand. 2019 housing or sell their leasing rights. Confirmed
30 October Sichuan Chengdu Public rental Relaxed requirements for qualified public service Increases demand for public rental housing. 2019 housing employees to apply for public rental housing subsidies, Minimal impact on regular property market. Confirmed which are also increased to 50% of their monthly rent.
30 October Shandong Qingdao Shared-equity Studying the proposal to pilot shared-equity housing Minimal impact. 2019 housing, talent and step up acquisition of housing units for talent. Confirmed housing
25 October Hainan Hukou Basically removes hukou restrictions for residents of the Increases property demand. 2019 province.
Applicants with a hukou from other Hainan cities can obtain a local hukou in the city where they have a stable living place.
Confirmed Applicants from other provinces can obtain a hukou if they have Hainan residence permit and contribute to pension insurance and employee medical insurance in Hainan.
The province also consolidates urban and rural hukou into a single resident hukou. 25 October Hainan Haikou Sales Prohibits bundling, speculative hoarding in sales. Strengthen rule enforcement 2019 Confirmed
74
Province/
Status Date ministry City Related Policy Details Impact 24 October Guangdong Guangzhou Shared-equity Publishes shared-equity housing management Increases demand for shared-equity housing. 2019 housing implementation measures in its Nansha district. Minimal impact on regular property market due to the small scale. Purchasers of shared-equity housing should have a 50- 80% share and have the option to convert it to Confirmed commercial housing after eight years from first registration.
Transfer of shared-equity housing is not allowed within five years from registration. The first batch has 347 units. 22 October Guangdong Shenzhen Accumulation Removes the required submission of some supporting Eases and encourages the use of accumulation 2019 fund documents for accumulation fund withdrawal; qualified funds in purchasing/ renting houses. Minimal Confirmed employees may withdraw an amount of funds equal to impact on property sales. their monthly rent. 21 October Fujian Xiamen Land bid, price Has reportedly removed set price caps or requirement If confirmed, implies that the local government 2019 cap on affordable housing in the recent offering of 11 land seeks to encourage land bids Unconfirmed parcels.
20 October Hainan Sanya Talent The city has reportedly relaxed HPR for non-resident Fine-tunes local policies; limited but positive 2019 attraction talent, who are now allowed to purchase a house if they impact on sales. have college degree or above and have been working in Unconfirmed the province for one year and have one-year payment record of social security or income tax. Qualified talent in shortage do not need to provide income tax or social security payment record. 17 October Jiangsu Nanjing HPR, talent Eases requirements for non-local hukou home buyers Mainly aimed at reducing inventory. Minimal 2019 attraction who hold higher diploma or above degrees in one impact on regular property market. district with immediate effect. They previously had to Confirmed provide a cumulative two years’ payment record for social security or income tax within recent three years in order to purchase a home. 17 October Tianjin HPR All non-local hukou workers with an employment Increases demand 2019 contract with companies in Beijing will be eligible to Confirmed purchase a property in Tianjin. The requirement of social security or income tax payment receipts has been removed.
75
Province/
Status Date ministry City Related Policy Details Impact 16 October Guangdong Shenzhen Rental housing The local MOHURD introduces the city’s first rental Minimal impact on regular property market. 2019 housing project with standard rent maintained at 110 Confirmed yuan/m2. The first batch includes 248 units. The annual rent increase/decrease is capped at +/-5% and the longest rental term is five years. 10 October Hunan Changde Talent Offers qualified talent a monthly working and living Minimal impact. 2019 attraction allowance of up to 5,000 yuan per month and a subsidy Confirmed up to 200,000 yuan for home purchase.
9 October Jiangsu Yangzhou Accumulation Increases the maximum loan quota to 500,000 yuan Increases home purchase demand. 2019 fund loan from 350,000 yuan per household and to 300,000 yuan from 210,000 yuan per individual. Confirmed Increases coefficient of loan repayment capability from 0.3 to 0.5, in effect allowing higher loans to be taken out from accumulation fund. 9 October Zhejiang Ningbo Regulation The local MOHURD, PBOC, CBIRC and Accumulation Strengthens the regulation and management of 2019 Fund Management Commission require funds from property presales and transaction funds; further presales, installments, once-off payments, bank tightens developers’ financing capability. Confirmed mortgage loans, and accumulation fund loans to be deposited in the presale fund custody account, and the amount should equal to 130% of the project construction cost. 8 October Multiple Mortgage rates Multiple cities launch LPR-based home mortgage rates. Minimal impact in short term as the effective 2019 cities Shanghai set the minimum rate for first-home purchase rates are designated to remain stable, Confirmed at 20bps below LPR and 60bps above LPR for second particularly for first-home purchases, while more home purchase. Shenzhen and Tianjin both set local rates increases are seen for second-home rate floors at 30bps above the LPR. purchases. 29 September Sichuan Chengdu Accumulation Easing to allow portability for migrants whose Modest demand boost from accumulation fund 2019 fund loans contributions to accumulation funds in other cities will easing. now be counted in Chengdu. Confirmed
Max period for accumulation loans is increased to 30 years. 29 September Hubei Wuhan Accumulation Relaxes requirements for accumulation fund loans for Modest demand boost from accumulation fund 2019 fund loans second-home purchase. easing. Confirmed
76
Province/
Status Date ministry City Related Policy Details Impact Households whose first home is larger than 144m2 will now be eligible for a second home accumulation fund loan.
Max period for accumulation fund loans is increased to 30 years from 20 years.
The age ceiling for certain female applicants is increased to 60 years old from 55. 28 September MOHURD Accumulation Public rental housing applicants are not required to Eased access to accumulation fund for rental 2019 fund, submit household income proof for accumulation fund market; no impact on ordinary housing market. Rental housing withdrawals Confirmed Regular rental housing applicants are not required to provide rental contract, rental payment records, and household income. Only written commitment is needed. 26 September MOHURD Shared-equity MOHURD minister encourages large and medium cities City government will determine the size of any 2019 housing with high population inflows and property prices to increase in shared-equity housing supply. As Confirmed develop shared-equity housing such, it is unlikely to be big enough to have an impact on the ordinary housing market. 26 September Hubei Yichang Hukou, Scraps all existing hukou restrictions Increases demand, especially at the low to mid 2019 talent College graduates eligible to buy homes at 10-20% end. Confirmed attraction discounts within 5 years of graduation
26 September Shanghai Public rental Pilots public rental housing units that provide tenants This programme is likely to be very popular as it 2019 housing with an option to purchase 10 years after completion. offers an affordable route to home ownership. Confirmed Expect applications to far exceed supply; potential for abuse. 25 September Anhui Wuhu Talent Lowers deed tax and offers 10,000-20,000 yuan Limited demand increase. 2019 attraction subsidies to qualified college and vocational school Confirmed graduates and skilled workers when purchasing a first home. 25 September Jiangsu Wuxi Accumulation Lowers the maximum loan quota from 500,000 yuan to Slight reduction in home demand. 2019 fund 300,000 yuan per eligible individual and from 800,000 yuan to 600,000 yuan per eligible couple. Confirmed
The actual withdrawal will be linked to the balance of applicant’s accumulation fund account and the length of 77
Province/
Status Date ministry City Related Policy Details Impact their payment record. This restriction does not apply to low-income applicants who purchase affordable housing.
24 September Anhui Hefei Rental housing Introduces preferential measures for rental housing Increases rental housing supply 2019 market - simplifies land supply procedures - reduces land prices by up to 30% from the benchmark level - adds rental housing construction requirement in Confirmed land bids - 3-year tax exemption on rental income for individual landlords, with just a 1% tax rate thereafter - Home rental companies are eligible for tax reductions if they rent to individuals 23 September MNR Land supply Pledges to reform the land planning system and speed Accelerates land supply 2019 up approval system for land-use rights.
The reform aims to combine a number of permits into a single catch-all permit. It is being piloted in Shanghai Confirmed and other cities.
The State Council will also delegate to provincial governments the power to allocate use rights in new land parcels. 23 September Jiangsu Nanjing Rental housing Prohibits marketised rental housing units from being Regulates rental housing market and increases 2019 sub-divided for transfer (sale) or to use as collateral. the supply of rental housing.
Increases the share of office and residential GFA in Confirmed industrial projects from 7% to 15%, with a focus on construction of staff dorms.
Allows building rental housing on collectively owned construction land upon agreement of 2/3 of the owners. 20 September Inner Mongolia Ulanqab Public rental Expands the coverage of public rental housing to include Minimal impact on ordinary property market. 2019 housing medium- and lower-income residents, and non-local Confirmed residents working in public services such as transportation and sanitation. 78
Province/
Status Date ministry City Related Policy Details Impact 19 September CBIRC and local Real estate The CBIRC and local regulators are reportedly planning Further strengthens regulation enforcement. 2019 regulators financing to exercise comprehensive supervision over real estate Unconfirmed financing, with priority to reduce off-balance sheet fund inflows. 19 September Zhejiang Hangzhou Talent Offers subsidies of up to 1.2mn yuan per home Small demand boost in the district which is on 2019 attraction purchase or 4,000 yuan/month for home renting to the outskirts of the main urban area and largely qualified top talent in Yuhang district. Qualified talent rural. who already own a home may still get half of the Confirmed subsidy amount.
The same district also offers four land parcels for bid, aiming to build about 3,000 units of rental housing for talent. 18 September MOF, Social housing Jointly issued guidelines on the management of social Minimal impact on ordinary property market, 2019 MOHURD housing funding to support three main areas: but boost for urban renovation investment - public rental housing and shantytown theme. redevelopment in urban areas - urban renovation with focus on utilities, facilities for public services, and elevator installation Confirmed - regular rental housing
The guidelines cover funding allocation and encourage provincial governments to prioritise cities that have limited financial resources and small enterprises that are in difficulty. 17 September Jilin Changchun Rental housing Plans to newly add 3.15mn sqm of rental housing from Increases rental housing supply and demand. 2019 2019 to 2021, increase rental housing land supply, encourage SOEs, developers, and property service firms Confirmed to develop rental housing business, allow tenants to enjoy the same rights as home purchasers, and provide real estate development loans to support the construction of rental housing. 17 September Beijing Land, Completed the first collective land bid for salable Milestone for the inclusion of (rural) collective 2019 Shared-equity residential project, which will offer more than 1,000 land into the regular property market housing units of shared-equity housing to be completed in 2022. Confirmed
The price, including decoration, is set at a similar level to comparable properties in the vicinity.
79
Province/
Status Date ministry City Related Policy Details Impact 17 September Zhejiang Ningbo Hukou Relaxes requirements for hukou application: people with Encourages population inflows and may 2019 university and vocational school education may apply consequently increase housing demand. for a hukou within 15 years of graduation Ningbo, as part of the YRD region, is likely to be Shortens social security history requirement for talents an attractive destination for many young well- Confirmed and professionals educated people.
Apartment tenants and entrepreneurs who own commercial or office properties are also allowed to apply for a hukou 16 September Shandong, 8 cities in the Accumulation Provides portability of accumulation fund accounts Encourages integration and labour flows within 2019 Jiangxu, Henan, Huaihai fund loans among the 8 cities; scraps the local hukou requirement. the Huaihai Economic Zone. Confirmed Anhui Economic Zone 16 September Zhejiang, Real estate Have reportedly restricted consumer loans flowing into Squeezes one source of speculative purchase 2019 Beijing financing the real estate market. funding. Unconfirmed
13 September Hainan Accumulation Required households who intend to withdraw Minimal. 2019 fund loans accumulation funds for home purchase in other Unconfirmed provinces to provide documentation of at least six- months holding a hukou and having a social security in that other province 12 September Guizhou Guiyang Accumulation Allowed families to apply for new accumulation fund Modest home demand boost. 2019 fund loans loans immediately after full repayment of outstanding accumulation fund loans. Previously new applications Confirmed could only be made one year after the full repayment.
The minimum down-payment ratio has been lowered for purchases of second-hand homes. 11 September Hunan Changde Accumulation Releases a guideline that seeks to clamp down and Minimal. 2019 fund penalize illegal accumulation fund withdrawal or loans. Confirmed
11 September CBIRC Developer Xiao Yuanqi, chief risk officer of CBIRC, said regulators Suggests that regulators’ main concern is 2019 financing did not wish to restrict new loans to developers, but to developer financial risks and land prices, and Unconfirmed stop illegal off-balance sheet funds from flowing into the they are not against bank construction loans to real estate market. low risk projects/companies.
80
Province/
Status Date ministry City Related Policy Details Impact 10 September Hebei Rental housing, Lessors who are unable to provide legal, accurate cost Implementation could be difficult given 2019 taxation documents of the property they lease out will subject to widespread tax evasion by small-scale lessors. Confirmed a 5-10% tax on their rental income, effective 1 October
10 September Unidentified Real estate Regulators in unidentified southern cities (likely Restricts funds flowing into the real estate 2019 southern financing Shenzhen) are reportedly investigating credit card use in sector. cities (likely real estate-related transactions (including in real estate Unconfirmed Shenzhen) development, agency services, construction, and property management and leasing).
5 September State Council Land reserve, States local government special bonds that are part of May slow local government supply of land next 2019 Shantytown the 2020 early approval quota may not be used for land year, as local governments seek alternative land redevelopment reserves and real estate-related areas. reserve financing sources. , affordable housing Confirmed An unidentified western province has reportedly issued emergency ban on land reserves, shantytown redevelopment, affordable housing, and urban renovation projects as local government special bond types. 4 September Jiangsu Nanjing Construction Cuts red tape with fast track grant of temporary Limited impact since in practice many 2019 construction permit upon making the land transfer developers rarely obtain all the necessary Confirmed down payment. permits before starting construction, as long as they have the support of the relevant local government departments. 4 September Shanghai Developer Local CBIRC has reportedly ordered trust companies to Continued tight supervision of trust funding of 2019 financing submit regular report on the newly issued, matured, property to restrict net new financing (only Unconfirmed and outstanding AUM of real-estate related trusts and rollovers allowed). channel businesses. 4 September Guangdong Urban renewal Releases guidelines on simplifying the approval Accelerates urban redevelopment projects that 2019 procedures for rebuilding old towns in urban cities. The are a major business focus especially in Confirmed previous 100% vote requirement for mandatory Guangzhou. resettlement of existing residents is reduced to 67% (2/3). 3 September Gansu Regulation Criticises 20 developers for housing quality defects, non- Looks to enforce existing regulations. 2019 compliant home loans, delivery of unfinished houses, Confirmed and refusing to accept accumulation fund loans.
81
Province/
Status Date ministry City Related Policy Details Impact 2 September Guangxi Nanning Rental housing Local MOHURD issues rental housing development plan Moderate increase in rental housing supply. 2019 looking to increase land supply for rental housing and Confirmed public rental housing supply, convert commercial buildings to rental housing, encourage individual leasing, and convert old towns to rental housing. 2 September Guangdong Shenzhen Rental housing Local MOHURD plans to newly build at least 300,000 Increases rental housing supply and maintains 2019 units of rental housing by 2022. rental. Rental housing should account for at least 30% of the newly built regular housing and at least 50% in the Confirmed newly built affordable housing. Exempts taxes for rental housing contracts signed on the government home renting platforms at rentals no higher than the guidance price, until 2023. 29 August CBIRC Developer Reports major problems identified in some small and Financing would be more tightened for smaller 2019 financing medium banks, stating violations are found in lending to developers. unqualified real estate developers and undercapitalised Confirmed projects. Requests these banks and relevant supervision authorities to take prudent supervision and administrative penalties targeting these problems 29 August Guangdong Guangzhou Accumulation Adjusts the maximum period of accumulation fund Increases demand and efficiency of 2019 fund loan loans for first-home purchases to 30 years, extending accumulation fund loans. Confirmed from 20 years previously. Also eases the application process as well. 29 August Multiple banks Developer Multiple banks have reportedly received “window Tightens developer financing. 2019 financing guidance” on tightening real estate development loans.
Unconfirmed The vice president at the CCB said the bank will further increase the requirements for real estate development loans and strengthen supervision on fund uses. 28 August Anhui Hefei Land bids, Sets starting and ceiling prices of land bids based on the Aims to cool land bid prices. 2019 rental housing average prices of newly built homes and transaction prices of second-hand homes in surrounding areas of the auctioned land parcel. Confirmed
Bidders whom offer to build the largest area of rental housing will be deemed the winner when the ceiling price is reached.
82
Province/
Status Date ministry City Related Policy Details Impact 28 August MOF Urbanisation Allocates 30bn yuan to support rural migrants in Seeks to push for urbanisation rate, which is 2019 granting long-term residency in cities with priority on targeted at 60% by end of 2020. Limited impact Confirmed regions that have more rural migrants and higher on regular property market. demand of basic public services. 28 August Guangxi Shantytown Plans to start the construction of all units planned for Looks to increase/ accelerate the construction of 2019 redevelopment this year’s shantytown redevelopment by end of public rental housing and the settlement of , public rental September. residents in shantytowns. housing Financial institutions are encouraged to provide financing support to shantytown redevelopment projects. Confirmed
Requests municipal governments to make public rental housing construction plans 2019-2021 and, by end of this year, supportive measures on public rental housing for young employees, migrant workers, and those who work in the public services sector, e.g. sanitation, public transport, etc. 27 August NPC Land The revised land management law allows collectively Limited direct impact on property sales. Would 2019 management owned land by rural communities to enter the market mainly pressurise rental housing prices first. laws Confirmed upon agreement by relevant villagers. But the land would only be allowed for industrial or commercial uses, such as building rental housing or factories. 26 August PBOC Mortgage rates Sets the lower limit of mortgage rates to be at LPR for Mortgage rates are expected to be higher, if not 2019 first-home loans and at LPR plus 60bpts for second- remain stable. Confirmed home loans issued after 8th of October. Local PBOC branches would add premiums on top of the lower limits based on conditions of local property market. 23 August Anhui Hefei Mortgage 12 banks have reportedly suspended approving Decreases property demand. 2019 loans mortgage loans for second-home purchases due to limited quota.
Unconfirmed Other banks still provide mortgage loans at 25-30% premium above the benchmark rates for second-home purchases and at a 20% premium for first-home purchases.
83
Province/
Status Date ministry City Related Policy Details Impact 23 August Beijing Shared-equity Opened online applications for 1,144 units of shared- Might signal that non-hukou residents would 2019 housing equity housing in Yizhuang town. Applicants are also be allowed to purchase shared-equity Confirmed required to be employed in Beijing Economic and housing in future, which would increase the Technological Development Zone, with or without a demand for this segment only. local hukou. 21 August Fujian Xiamen Regulation Prohibits the conversion of commercial and office Reduces effective future housing supply. 2019 buildings to apartment/residential buildings. Confirmed
21 August Shanghai Shared-equity Began shared-equity housing applications for Minimal impact on regular property demand. 2019 housing qualified non-resident families (favouring talent, Confirmed younger families and lower-income ones), in all 16 districts. The process is set to for completion by end of September. 21 August PBOC Mortgage rates PBOC deputy governor said the new LPR mechanism will Minimal impact in the short term as mortgage 2019 be a reference for mortgage rates but will not make it rates are increasing at the moment. Confirmed lower; relevant policies on individual mortgage rates expected to be released soon. 16 August Zhejiang Hangzhou Talent Steps up rental housing subsidies for college graduates Increases rental housing demand. 2019 attraction who have worked for three years in western counties of Hangzhou. Graduates can not receive 10,000-30,000 yuan/year, depending on their academic qualifications. Confirmed
Qualified graduates and entrepreneurs can also receive a maximum subsidy of 1,080 yuan/month for public rental housing, for up to six years. 15 August Guangdong Shenzhen Individual PBOC’s Shenzhen branch pledges to maintain Enforces regulation more strictly and caps 2019 housing loans, “appropriate” growth in individual housing loans in housing loan growth in 2H19. developer Confirmed 2H19, strictly prohibit the use of consumption loans to funding buy houses, and strengthen the management of funds in the property market via other financing channels. 14 August MOHURD Legislation, A MOHURD official says the ministry pledges to The legislation, if coming into effect, could set 2019 Social housing accelerate legislation for housing security with the aim hard responsibilities/ targets for local to provide regulation on the phasing in and out of governments in terms of building social housing. Confirmed affordable housing. Larger cities likely to be encouraged to build more public rental housing and shared-equity housing. Some response expected but tempered
84
Province/
Status Date ministry City Related Policy Details Impact Reiterates that housing security should be stepped up at by funding concerns, especially if land sales are large-/medium-sized cities that have higher population weak. inflows and thus higher housing demand as a next step.
Notes that priority should be put on public rental housing and shared-equity housing where local governments in qualified regions are encouraged to get involved in the management and operation gradually. 12 August Guangxi Nanning Public rental Issues public rental housing subsidy standards for No impact on regular property market. 2019 housing qualified low-income families and individuals Confirmed
12 August Beijing Construction Set higher building standards for shantytown Minimal impact on sales given that affordable 2019 quality redevelopment, affordable housing, shared-equity housing is already in high demand in Beijing. housing, public rental housing, and other Confirmed social/commercial housing Higher building standards may lead to higher prices, bolstering broader market confidence in future house prices. 11 August Hubei Wuhan Rental housing Plans to raise 3.5bn yuan for developing the local rental Increase rental housing supply. 2019 housing market. Unconfirmed
11 August Jiangsu Nanjing Rental housing Multiple government bureaus start joint investigations Curbs market violations in the rental housing 2019 on market violations in 1,100 property agencies and market. rental housing enterprises. Confirmed
Local enterprises were found publishing untrue listings and illegally collecting and using rent from tenants. 10 August Beijing Regulation The local MOHURD fined 11 property agencies for Enforces existing regulation. Minimal impact on 2019 sales. Confirmed false advertising and speculative activities.
9 August 2019 Jiangxi Nanchang Presale Implements a presale lottery system run independently As a form of artificial price control and rationing, of the relevant developer. it will lead to shortages, ie pent-up demand. Confirmed
85
Province/
Status Date ministry City Related Policy Details Impact 9 August 2019 Gansu Shantytown The local MOHURD plans to complete shantytown Supports property demand in lower-tier cities. redevelopment redevelopment investment by end of October and step Confirmed , public rental up subsidies for public rental housing. housing 9 August 2019 CBIRC Various cities Developer Will conduct special examination on property-related Large cities to see slower growth in home financing, business in the banking industry, focusing on areas such mortgage lending, and there is a risk of slower Mortgage as credit line management and internal controls, approvals for construction loans too. loans, property development and land reserve loans, Rental housing individual home mortgage loans, and rental housing Confirmed loans.
Inspections to cover banks in 32 cities, including the four tier 1 cities and many tier 2 cities such as Hangzhou, Chengdu, Chongqing, Nanjing, Suzhou, Wuhan, etc. 8 August 2019 CBIRC Nationwide Developer Reiterates that it will strictly enforce the guideline on Restricts trust financing for developers, except financing strengthening compliance management and risk control especially smaller developers. Liaoning, in property trusts in 2H19. Guangxi, Confirmed Hainan, and Some trusts companies have reportedly received Ningxia “window guidance” from the regulators: to cap property trust AUM at 30 Jun levels for Q3, ie zero net increase in property trust lending. 6 August 2019 Shanghai HPR, Shanghai’s new FTZ area in Lingang district relaxed Lingang is a new city 1 ½ to 2 hours drive from Hukou hukou requirements for talent, reducing required downtown Shanghai, ie not really a viable history of tax payment or social security payment by 2-4 commuter hub. years. Confirmed These policies may boost demand in the new It also adjusts HPR from family-based to individual- FTZ area but will have minimal impact on the based for non-residents and shortens the required core Shanghai market. history of tax/ social security payment by 2 years. 4 August 2019 Anhui Public rental Calls for an increased supply of public rental housing via No impact on regular property market. housing construction, acquisition, and long-term leasing. Confirmed
4 August 2019 Shaanxi Regulation, Clamps down on market violations and pledges to Jawboning, unlikely to have a material impact. presale accelerate presale approvals so as to maintain housing Confirmed supply.
86
Province/
Status Date ministry City Related Policy Details Impact 2 August 2019 Beijing Overall Steps up social housing supply by constructing 50,000 Increases supply for social housing and aims to units of rental housing, 60,000 units of shared-equity develop rental housing. However, demand for and replacement housing, 70,000 units of affordable affordable housing in Beijing is much larger than housing, and 11,500 units of shantytown supply and this will have zero impact on the redevelopment. regular housing market. Confirmed Improves rental housing management, increase rental housing supply, promote the development of rental housing enterprises, accelerate the construction and conversion of rental housing on collective land and for employee dormitory. 1 August 2019 Liaoning Dalian Home prices Monitor and guide presale prices for properties in eight Aims to reduce speculation. Limited impact on districts. Developers that don’t report presale prices or genuine demand. accept price guidance would be disqualified for home sales. Confirmed Newly registered presale prices, once set, may not be adjusted for 6 months. At this point adjustment is subject to approval and they may not be cut by more than 5%. 1 August 2019 Multiple Mortgage Banks at multiple cities including Hefei, Guangzhou, Decreases property and land demand in the cities loans, Changsha, and Tianjin reportedly said loans for property targeted cities, most of which have seen faster Developer Unconfirmed development and land purchase, as well as individual increases in their home prices. financing mortgages are being tightened in terms of application process and total balance. 31 July 2019 PBOC Developer - Reiterates “homes are for living in, not for Reaffirms the tighter policy stance towards financing, speculation”. developer finance and more cautious approach mortgage - Implement long-term property market stabilisation towards home mortgages. loans, mechanism Long-term - Maintain appropriate growth in personal housing loans mechanism Confirmed - Crack down on illegal use of consumption loans in home purchase - Strengthen the management of financing channels into the property market - Strengthen the supervision and risk alert on developers with high leverage ratio
87
Province/
Status Date ministry City Related Policy Details Impact 31 July 2019 Guangdong Dongguan HPR - Eases restrictions on home purchasers from Hong Minimal impact on overall market. Kong, Macao, and Taiwan Potentially larger impact on high-end segment. Confirmed - Qualified residents from these regions may now purchase one newly built home if they don’t have one in the city 30 July 2019 Politburo Overall - Implement long-term property market mechanism Signals the government’s determination to - Pledge not to use short-term real estate stimulus to reduce its dependence on real estate in the long Confirmed boost economy run.
30 July 2019 Anhui Hefei Developer The local MOHURD and 6 other bureaus summoned 40 Jawboning has little effect in itself, but likely to finance local developers to discuss strict controls on developer presage concrete tightening of developer Confirmed financing, presale funds, and home pricing, as well as finance and home price controls. regulatory enforcement. 29 July 2019 Beijing Shantytown Residents in Tongzhou district can choose shared-equity - Aims to increases demand for shared-equity redevelopment housing as compensation for shantytown housing. Confirmed shared-equity redevelopment. - Minimal impact on the regular property housing market. 28 July 2019 Inner Mongolia Hohhot Regulation The local property agency association will inspect and Looks to clamp down speculation in its second- regulate the second-hand home market. home market. Confirmed Home prices in the city increased more than 20% yoy ytd by June. 27 July 2019 Beijing Land supply This year’s land supply plan set a minimum land supply Unlikely to result in the substantial increase in for commercial residential housing for the first time. housing supply that would be needed to address Confirmed the structural undersupply in the Beijing housing market. 26 July 2019 Henan Luoyang HPR Requested developers to maintain presale prices at the Aims to cool the overheated property market. average contract prices in April. Luoyang new home prices rose 16.7% yoy Unconfirmed growth in June.
25 July 2019 Jiangsu Suzhou Home resale Expands existing home resale and purchase restrictions Drags down property sales. restriction, from selected districts to the entire city. HPR The city aims to cap home price growth at 5% Confirmed Newly built homes may only be resold three years after this year and was requested by the MOHURD to purchase and second-hand homes can only be resold step up restrictions if key property indicators, five years after purchase. such as home prices, could not be controlled by July.
88
Province/
Status Date ministry City Related Policy Details Impact Non-residents need to provide two years of income tax or social security payment receipts, up from the previous one year requirement.
23 July 2019 Beijing Price control The Beijing MOHURD will check property value Aims to strengthen supervision and regulation assessment. enforcement in the property market in terms of Confirmed value assessment. The results may provide reference for further measures. 22 July 2019 CBIRC Developer The CBIRC is said to investigate 75 lenders in 30 cities on Aims to crack down on illegal funding for financing, loans with respect to property down payments and off- property purchase and land purchases. Unconfirmed Mortgage balance sheet financing for property developers.
20 July 2019 Local CBIRCs Developer Tightens requirements on real estate trust products. It is estimated that more than 60% of current financing real estate trust products, including those of The new rules bar trust funding for real estate projects larger developers, would be affected by the new unless the fund recipient, or majority shareholder in the rules. project, has a level 1 or 2 real estate development Unconfirmed license. This is stricter regulation but not a total block since the parent company could still borrow This replaces the previous rule that allows trust funding trust funding and channel it to the subsidiary. if the project’s majority shareholder has a level 1 or 2 licence.
20 July 2019 Henan Kaifeng Home resale The local MOHURD reportedly cancelled its decision to Signals that cities are not allowed to make restriction scrap home resale restrictions just one day after the significant loosening moves unless the local Unconfirmed announcement, claiming “insufficient market research”. property market is under severe pressure.
19 July 2019 Henan Kaifeng Home resale The local MOHURD has reportedly scrapped local Limited boost to short-term sales in the short restriction restrictions on reselling a property before three years term given weak demand in low-tier cities. Unconfirmed after the purchase date.
19 July 2019 Zhejiang Hangzhou Public rental Relaxes the requirement for public rental housing Small increase in public rental housing demand. housing applications by increasing the upper limit of annual Confirmed disposable income to 61,172 yuan from 56,276 yuan.
18 July 2019 Beijing Pre-sales, The local MOHURD penalised three developers, namely Minimal market impact. regulation CR Land, CRCC Real Estate, and Vanke, for breaching Unconfirmed pre-sale rules and making false marketing claims.
89
Province/
Status Date ministry City Related Policy Details Impact 18 July 2019 MOHURD 16 cities Rental housing 16 cities, mostly tier 1 cities and provincial capitals, will Expected boost to rental housing supply unlikely receive an annual subsidy of 0.6bn-1bn yuan from the to slake the enormous unmet demand for low Confirmed central fiscal budget for rental housing development for cost housing options in these top-tier cities with a span for three years. high population inflows. 18 July 2019 Guangdong Guangzhou Rental housing Allows qualified retail and office properties to be Zero impact on the ordinary housing market. converted into rental housing. Partly reverses the recent policy direction of restriction on repurposing commercial property as residential housing for sale. Housing rental yields are generally very low 1- Confirmed 2%. Such conversions might help on the margin to mitigating oversupply in commercial and office buildings and boost rental housing supply. The effect might be limited in the short term before more detailed arrangement, such as access to education, is clarified.
17 July 2019 Zhejiang Ningbo Pre-sale Developers are only allowed to charge fees or collect Could slow down sales due to stricter regulation payment such as reservation payment after obtaining a enforcement of regulation on the requirement pre-sale license. of pre-sale license. Confirmed Reservation payment should not exceed the required amount of down-payment
17 July 2019 MOF, STA Land The jointly drafted land appreciation law expands the Aligns with the inclusion of collective land into appreciation tax scope to include transfers of collective land use the market. tax rights and buildings on the collective land on top of the The potential tax exemption/ reduction might provisional regulation. encourage/ increase supply of collective land. Confirmed Authorises the State Council and provincial governments to exempt/ reduce land appreciation tax Property built on collective land has shorter on certain conditions and local situations. land-use rights (usually 20-30 years) and weaker legal protection. 16 July 2019 Fujian Xiamen Talent Provides qualified top talent a subsidy of 1.3mn-2mn Minimal impact on ordinary property market. attraction yuan per year for home purchases over a span of ten The number of qualified ‘top talent’ is likely to Confirmed years, or 6,000-10,000 yuan per month for home be too small to affect the market. renting for up to five years.
90
Province/
Status Date ministry City Related Policy Details Impact 12 July 2019 NDRC Developer Restricts developers from issuing overseas bonds The intention is to cool down certain land finance except to refinance overseas medium and long-term markets, but it will also drive industry bonds maturing within a year. consolidation.
In 1H19 developers raised 430bn from Confirmed domestic and overseas bond funding and 450bn from trust companies vs >2trn yuan of land sales (+16% yoy) in the top 300 cities.
39 A-share developers or 33% of the total have asset-liability ratios over the 80% red line. 12 July 2019 MOHRSS Hukou Requires provincial capitals and lower tier cities to scrap Expected to build a bigger demand base in the MOE hukou restrictions for graduates of vocational schools, long run and accelerate urbanisation in more MPS Confirmed and domestic and overseas universities. attractive cities. MOF PBOC 12 July 2019 Zhejiang Ningbo Mortgage rates Many banks in Ningbo are said to have increased the Decreases property sales. mortgage rate for first-home purchases by 5ppt to a Unconfirmed premium of 10% above the benchmark rate.
11 July 2019 Hubei Wuhan Talent Aims to provide 50,000 units of subsidised rental Increases affordable housing supply and reduces attraction, housing to university graduates and build 1,000 units of living costs for talent. affordable shared-equity housing by this year. Wuhan has historically suffered from brain drain housing, Confirmed of locally educated graduates to tier 1 cites. This rental housing kind of program could help stem the outflow, but the availability of high-quality local jobs is key. 10 July 2019 Local CBIRC Developer Some local CBIRCs requested trust companies to obtain Developer financing via trust companies will be financing approval for any new real estate trust business and to monitored and controlled, putting pressure on Unconfirmed control the scale of real estate trust products. marginal developers.
10 July 2019 Shandong Hukou Streamlines hukou registration of rural migrants, Aims to increase urbanisation rate. Modest scrapped hukou restrictions in small- and medium- sized boost to property demand. Unconfirmed cities and administrative towns.
10 July 2019 China Banking Developer New report warned about higher financial risks in the Developer financing could be more restricted. Association financing, real estate industry, the illegal use of consumption loans Several banks reportedly were asked to control Confirmed Real estate to buy property, high debt ratios of developers, banks’ real estate loans. financial risk 91
Province/
Status Date ministry City Related Policy Details Impact high exposure to the real estate industry, and the large proportion of loans that were backed by property.
8 July 2019 Beijing Rental housing Published standard home rental contract, including In effect a supply reduction of low-end rental stipulations against modifying the interior structure for housing, driving up rental price. Confirmed sub-divided renting, average floor area per capita should at least 5m2, and each room should not house more than two persons. 8 July 2019 Guangdong Shenzhen Presale Guangming district MOHURD met 11 developers in a bid Aims to enforce rules and cool property sales regulation, to strengthen pre-sale price management and enforce and prices. A previous land bid at end of June in Unconfirmed Price control pre-sale approval rules. the district has reportedly attracted more than 30 developers. 6 July 2019 Jiangxi Shantytown Jiangxi MOHURD issued incentive measures for Could accelerate the progress of both redevelopment shantytown redevelopment. A certain number of cities shantytown redevelopment, which subsequently with good performance would be identified jointly with could boost home sales in lower-tier cites, Confirmed the provincial NDRC and MOF, and would be prioritised especially if a large share of relocated residents in the provision of funds for affordable housing plans are given cash compensation. and projects. 5 July 2019 Hunan Changsha HPR, Clarifies that overseas individuals with a 24-month Minimal impact, mainly reiterates/ summarises Talent payment record of income tax or social security may buy existing rules. Overseas individuals not likely to attraction Confirmed one property in restricted areas make up significant share of the market. Qualified Chinese green card holders may enjoy local hukou-equivalent property purchase policies. 5 July 2019 National Developer Regulators said to ask trust companies to limit the scale Squeeze developer financing, speed up industry financing of funding to the real estate sector, or in some cases to consolidation. Unconfirmed suspend it entirely.
4 July 2019 Zhejiang Ningbo Developer The Ningbo local CBIRC fined 12 banks for breaking rules Modest impact – enforcing existing rules. financing, with respect to developer loans for land purchase and Unconfirmed mortgage home purchase loans. lending 4 July 2019 Guangdong Shenzhen Rental housing Draft rental housing measures call for rental supply More orderly rental housing market. increase, contract filing, improvement of home renting Confirmed platform, preferential taxes, etc.
92
Province/
Status Date ministry City Related Policy Details Impact 3 July 2019 Hainan Sanya Regulation Inspections of suspected rule violations such as HPR Modest cooling effect on property sales. circumvention, illegal pre-sales. Confirmed
2 July 2019 Guangdong Guangzhou Rental housing Caps rental contract term to five years, pledges to Clarifies distinction between owned property increase land supply for rental housing, and regulates/ (70 year, extendable land-use right) and long- Confirmed limits the use of rental housing. term rental housing (<5 year term).
30 June 2019 Zhejiang Hangzhou Land bids, Piloted the first batch of land auctions for price-capped Price-capped housing is expected to be popular Price control property. among buyers but insufficient in supply to affect Developers are required to set price limits on maximum the ordinary housing market in Hangzhou in the Unconfirmed and average prices of units sold on the auctioned land. foreseeable future The maximum sales price is capped at 1.1 times the average sales price. 28 June 2019 Zhejiang Hangzhou Rental housing Hangzhou Home Renting Administration Association Minor impact and several online home renting platforms jointly Unconfirmed agreed to ensure the provision of accurate home rental information and strictly regulate home renting related loans. 27 June 2019 Hainan HPR, Shortened the requirement on social security or income Modest boost for demand. Talent tax payment history to one year for all non-hukou attraction holding talent working in the province.
Confirmed This requirement is waived altogether for non-local hukou holders in sectors with severe shortage in talent.
More experienced high-level talent may be eligible for the same property purchase rights as local residents. 26 June 2019 Shaanxi Xian Rental housing -Encourage property management companies to Aims to boost supply and demand for rental establish home renting companies housing. -Provide preferential taxes on property rental income Unconfirmed -Increase land supply for rental housing -Offer subsidies and local schooling access to tenants, -Provide financing to rental housing operators -Improve public rental housing management. 26 June 2019 Beijing Rental housing Required online rental advertisements to contain Expect market consolidation with smaller home rental platforms/ agents being squeezed out. Confirmed accurate photos, up-to-date prices, and agent commissions.
93
Province/
Status Date ministry City Related Policy Details Impact 25 June 2019 Ningxia Yinchuan Presale Several developers were punished for violating presale May slow sales. rules, such as deposit collection before obtaining Unconfirmed presale approval.
25 June 2019 Guangxi Nanning Price control The local MOHURD, MNR, SAIC, and UMLEB (Urban Minimal impact. Administrative and Law Enforcement Bureau) of Nanning have reportedly held a meeting with 120 Nanning is one of the four cities alerted by the developers and discussed speculative purchases, illegal MOHURD previously due to sharp growth in agency practices, price rigging, tax evasion, and illegal home prices and under pressure to take more Unconfirmed pre-sales price hikes. effective action.
Local officials warned of possible punitive measures such as placing firms on a blacklist, suspending licence approvals, and restricting land purchase or construction work. 21 June 2019 Jiangsu Suzhou Mortgages Several banks in Suzhou have reportedly suspended or Aims to cool the overheating property market. tightened home purchase mortgages. Unconfirmed MOHURD previously asked Suzhou to introduce more restrictions if prices aren’t under control by end of July. 20 June 2019 Shaanxi Xian HPR Released new HPR that require purchasers without a Decreases demand in the short term. Impact local hukou to obtain a social security/ income tax mitigated as it is relatively easy to get a local payment history of more than five years, increased from Xian hukou. two years previously, when purchasing their first home. Confirmed Xian home prices have increased the fastest Purchasers with a local hukou are required to have the among the 70 major cities for six months in a hukou for at least one year, or have a consecutive 12- row this year. month record of social security/ income tax payment. 20 June 2019 Zhejiang Hangzhou Mortgage rates Bank of China reportedly increased mortgage rates from If other banks also increase the mortgage rates, 5% above the benchmark rates to 8% higher. would decrease demand, though only Unconfirmed moderately considering the small rate increase.
17 June 2019 NDRC Hukou NDRC plans to allow rental housing residents to obtain Increases demand for rental housing. an urban public hukou that affords access to local public Confirmed services. It will facilitate hukou registration for rural migrant families and those with >5 years of stable residence.
94
Province/
Status Date ministry City Related Policy Details Impact 15 June 2019 Sichuan Chengdu Mortgage rates Chengdu PBOC has reportedly asked all local banks to May decrease demand though that much set mortgage rates at least 15% higher than the market rates were already close to the Unconfirmed benchmark rates for first-home purchase and 20% requested levels. higher for second-home purchases. 14 June 2019 Guangdong Guangzhou Population, Draft policy estimates for 5.1mn population increase Indicates long-term investment potential, urbanisation, and to build >2mn housing units by 2035, with rental drawing buyers and developers. property Confirmed housing accounting for at least 20% of newly built units. development, Rental housing, 14 June 2019 CBIRC Developer the CBIRC chairman Guo Shuqing, speaking at the Expect further restrictions on developer financing annual Lujiazui Forum 2019, said that the real estate financing in domestic financial markets. industry was “over financed.” He said the sector has Confirmed taken up credit resources that could be otherwise used for other industries, accelerated speculation, and worsened overheating, in the property market. 13 June 2019 Zhejiang Ningbo Pre-sale Home purchasers can opt to change/ cancel contract if Minimal impact on sales. the planned property purpose, floor area, plot ratio, Unconfirmed related facilities and public services, etc. are changed upon local MOHURD approval. 12 June 2019 Shenyang Dalian Talent Provided a family settlement allowance of 0.3-5mn yuan Moderate support for demand in home attraction to qualified high-level talent, and rental housing purchases/ rental housing if confirmed. Similar Unconfirmed subsidies or home purchase subsidies to other talented policies elsewhere have resulted in a short-term individuals over a timeframe of three years. sales spike. 12 June 2019 Hubei Enshi Price control The local real estate association has reportedly issued a Artificial price floor may stabilise official sale document that looks to regulate the property market price data, but will not resolve oversupply. It and set floor prices for home sales. could lead to a sharper slowdown in sales and Unconfirmed force weaker developers to consolidate earlier. But Enshi MOHURD reportedly stated the document is unofficial hence not mandatory. 10 June 2019 National Property tax The currently ongoing demographic census, which also Effective implementation of the property tax is including home ownership information, is said not to still likely to be several years away at least, with Unconfirmed serve as a basis for levying property tax. the Property Tax Law still going through the legislative process. 7 June 2019 Housing fund Beijing Accumulation Streamlined process for withdrawal of accumulation Modest support for rental housing demand. Management fund fund for rental housing/ home purchasing. Centre Confirmed Newly employed graduates and qualified two-child families who do not own property in Beijing may use their accumulation fund deposits for rental payment. 95
Province/
Status Date ministry City Related Policy Details Impact 6 June 2019 Beijing Purchaser Social security records can be used if income tax Minimal impact on sales. eligibility payment is not applicable due to tax cuts. Confirmed
6 June 2019 Guangdong Dongguan Land bids Published new rules on land bids that, when the price Doesn’t address underlying land supply-demand cap is reached, will set the final land transaction price at gap, but should prevent one-time price spikes. Confirmed the average of all the qualified offers made, with tenders bidding closest to this average price to win. 5 June 2019 Shandong Jinan Shantytown Call for better use of special bonds for shantytown Unclear based on published details – if special redevelopment redevelopment and accelerating the construction of bond funding is used for large scale cash Confirmed pending projects in central districts. compensation of relocated households, it could be a major demand boost. 5 June 2019 Shaanxi Xi’an Purchaser Strengthened examination of home purchaser eligibility. Limited impact on sales. eligibility Buyers with fake information will not be allowed to buy Unconfirmed a property for five years.
4 June 2019 Jiangsu Nanjing HPR All non local-hukou residents with a local employment Boosts demand if confirmed. contract would be eligible to purchase a property. Unconfirmed The previous requirement of two years’ social security or income tax payment receipts is dropped. 3 June 2019 Shaanxi Pre-sale Strictly regulates pre-sale approval process and Could indicate stricter presale price controls in strengthens supervision and inspection. cities with rapid price growth. May lead to a fall Confirmed in presale home supply.
2 June 2019 Beijing Talent Chaoyang district is said to provide public rental housing Moderate support for public rental housing and attraction and shared-equity housing to talent in the VC industry shared-equity housing demand. Unconfirmed
31 May 2019 PBOC, Developer PBOC and CSRC are said to suspend certain developers If a broader tightening is applied to other CSRC financing from issuing bonds and ABS due to concerns about developers, would slow down land demand. Unconfirmed overheating risks in the land market
29 May 2019 Hangzhou, Hukou, All cities eased requirements for hukou applications in Boosts housing demand. Chongqing, Talent part, if not all, of their districts. Tianjin attraction, Confirmed Rental housing Binhai New District of Tianjin provided rental housing allowance to qualified talent.
96
Province/
Status Date ministry City Related Policy Details Impact 28 May 2019 Guangdong Rental housing Issued a plan to promote general consumption that Increases land supply for rental housing. includes prioritising land supply allocation for rental Minimal impact on ordinary housing market. Confirmed housing and broadening access to public rental housing and housing accumulation funds. 28 May 2019 Hebei Xiongan Property Xiongan is said to publish policies related to property Minimal impact at this stage. development development and hukou registration. Confirmed
28 May 2019 Jiangsu Suzhou Price caps Suzhou is said to cap home price growth at 5% this year Rumours of possible future restrictions could and would reportedly issue stricter restrictions if key frontload sales in the short term. High-end property indicators were still out of control by July. developers likely find it harder to obtain presale Unconfirmed permit. The city is said to have prepared a long-term Nanning, Dalian, and Foshan, which were also stabilization plan that would soon be submitted to warned by the MOHURD, are also likely to issue MOHURD. measures to cool their overheated markets. 27 May 2019 Guangdong Shenzhen Land bids Invited bids for five parcels of land with price caps. Likely to boost rental housing supply a bit. When the price cap is reached, the tender offering the Confirmed highest floor area of rental housing wins the land bid.
27 May 2019 Hainan Land use Prohibited residential property development based on a Minimal impact. construction permit for a guesthouse. Confirmed
25 May 2019 Guangdong Zhuhai HPR Zhuhai is said to ease HPR for non-hukou buyers. Social Boosts home sales if reports are true. security records are reportedly not required for purchase of one newly built home for talent in all Unconfirmed districts and for others in certain districts. Residents from Hong Kong or Macau reportedly would be allowed to purchase two homes in certain areas. 25 May 2019 Anhui Hefei Rental housing Hefei is said to offer subsidies to companies involved in Boosts rental housing businesses and supply. rental housing construction, management, and agency Unconfirmed services.
24 May 2019 CBIRC Multiple Loans CBIRC has reportedly penalised banks and individuals The property market is most likely to remain regions for violations in loan issuances. strictly regulated for the stabilisation purpose. Unconfirmed
97
Province/
Status Date ministry City Related Policy Details Impact 24 May 2019 Beijing Shared-equity Beijing is said to be planning to lower shared-equity Aims to boost shared-equity home sales. Limited home home prices and ease the criteria for eligibility. impact on ordinary housing. Unconfirmed
24 May 2019 Hunan Accumulation Increased the maximum term of accumulation fund Boosts second-hand home purchases, small fund loans for second-hand home purchases from 15 years to boost for upgrader demand in first-hand home Confirmed 20 years. market.
23 May 2019 Jiangxi Nanchang Accumulation Increased the maximum withdrawal amount of Supports demand for rental housing. fund accumulation fund for rental housing. Confirmed
22 May 2019 Anhui Hefei Land bids Associated companies may not to participate in the Limited impact in cooling the heated land same land bid. market.
This policy aims to close a loophole. To cool a Confirmed heated land market, officials instituted a ‘lottery’ mechanism which developers got around by entering multiple associated companies.
21 May 2019 Beijing Talent Tongzhou district in Beijing is offering discounted rental Minimal impact on ordinary housing. attraction housing to qualified top talent. Confirmed
20 May 2019 Jiangsu Suzhou Education Restricted the enrollment for public primary and junior Boosts genuine demand for newly built homes rights, secondary school in the Suzhou Industrial Park. A family and slows down resale activity in the Suzhou talent wishing to send children to local public school must own Industrial Park. attraction a home in the catchment area. Previously a family buying a house in the area would need to wait until five years after the previous family’s children had last been enrolled in local schools, before being allowed to send Confirmed their own children to a local school. Under the new rules, that time is extended to nine years.
Required developers to designate certain properties – accounting for at least 60% of floor area built in the Suzhou Industrial Park – to be offered for sale to qualified talent in advance of other buyers. 98
Province/
Status Date ministry City Related Policy Details Impact 20 May 2019 Nanjing, Mortgage rates Some cities including Nanjing in Jiangsu province, The rates increase is said to be in a limited Nanning, Nanning in Guangxi province, Bengbu in Anhui province, number of cities where home prices are growing Bengbu saw mortgage rate rebounding after a 5-month too fast. The rates hike would cool second-home Unconfirmed decrease, mostly for second-home purchases, in May. purchases in these cities.
The rates hike might also spread to other cities that have an overheated property market. 18 May 2019 MOHURD Suzhou, Price control MOHURD has warned four cities about sharp home Suzhou has already issued home resale Foshan, price increases in recent months. restrictions in certain districts. The other cities Unconfirmed Dalian, are likely to tighten policy somewhat. Nanning 17 May 2019 CBIRC Nationwide Developer Looks to prevent financial risks by regulation Enforces regulation. Restricts/ clamps down financing enforcement. The real estate industry is listed as a illegal developer financing. Confirmed major area to clamp down illegal financing.
17 May 2019 MOHURD Public rental Local governments are urged to ease eligibility for Upper-tier cities are likely to increase public NDRC housing lower-income applicants and to provide supportive rental housing supply as the plan notes MOF Confirmed measures in land supply and preferential taxing to insufficient public rental housing development MNR supplement public rental housing development. for several large & medium sized cities.
16 May 2019 Jiangsu Xuzhou Accumulation To pilot the combination of commercial loans and Boosts home demand. fund accumulation fund loans in property purchases from 1st Confirmed Jun.
16 May 2019 Guangdong Shenzhen Land supply, Qualified land for non-residence purpose could be used Increases land supply for affordable housing affordable for construction of affordable housing for talent at construction. Confirmed housing discounted market prices.
15 May 2019 Policy Property tax Zhang Yiqun, a senior official at the Society of Public It could imply that the legislation is more experts Finance of China, said that the property tax was not complex and more difficult than expected and a Unconfirmed likely to move forward now given economic fully-formed draft law would be difficult to be uncertainties and with large-scale tax and fee reductions completed soon. being implemented 14 May 2019 Guangdong Guangzhou Rental housing, Draft policy stipulates that land supply for rental Boosts rental housing supply. Talent housing is to account for at least 30% of total new land attraction Confirmed supply for property development in downtown areas, and to provide rental subsidies to qualified talent.
99
Province/
Status Date ministry City Related Policy Details Impact 13 May 2019 Jiangsu Nanjing Talent Plan to offer talent with a doctorate degree subsidised Limited impact on ordinary property market attraction rental housing or discounts to purchase property. Confirmed
11 May 2019 Guizhou Guiyang Overall policies Issued a circular to increase land supply, control land Targets to cool the overheated market in one of to cool market price hikes, restrict resale of newly built homes, and the fastest growing city economies in China. Unconfirmed promote rental housing market.
11 May 2019 Jiangsu Suzhou Resale Issued a plan aiming to stabilise its property market. Not a broad tightening but rather tweaks restriction, Measures include 3-year resale restriction for newly intended to clamp down on speculative buyers Land bids, built homes and 5-year resale restriction for second- and lower land bid prices. Limited impact on talent hand homes in certain areas, rules on land bids to genuine demand but could tighten the supply in attraction Confirmed facilitate lower resale prices, and prioritising home sales the short term. to qualified talent. Suzhou has seen its property market heating up much faster than most other T2 cities since late last year. 10 May 2019 MOHURD Rental housing Iterated the importance of public rental housing. Upper-tier cities are likely to introduce more Requested large and medium-sized cities with high measures to increase public rental housing population inflows to increase public rental housing supply. Public rental housing addresses a social Confirmed supply. need but has little material impact on supply- demand fundamentals in the ordinary housing market. 10 May 2019 MOF, Rental housing MOF and SAT jointly issued tax incentives for the Reduces costs of building and operating public SAT construction and management of public rental housing. rental housing. May attract more market Confirmed participants and increase supply.
7 May 2019 Shanxi Urbanisation Eased path to obtaining local hukou for people with Boosts home demand, as province targets local jobs or residence, college and vocational school increasing the registered urbanisation rate to Confirmed graduates, their families, as well as undergraduates and 44% by 2020 from the current 41%. skilled workers. 7 May 2019 MOF Land MOF circulated draft legislation on the land Formalises existing practice of practical LAT that appreciation appreciation tax (LAT). The LAT legislation would replace is manageable for developers, reduces risk tax the 1994 provisional regulation on LAT which was associated with the onerous original LAT draft. Confirmed onerous, impractical and heavily diluted in implementation. LAT exemption encourages construction of affordable housing and certain state-owned projects.
100
Province/
Status Date ministry City Related Policy Details Impact 6 May 2019 Shandong Qingdao HPR, Disclosed photos of a document show that Xihaian New If confirmed, would boost supply and demand Land supply District of Qingdao plans to increase land supply, Unconfirmed accelerate construction, relax pre-sale criteria, and ease HPR, etc. 6 May 2019 Guangdong Zhongshan HPR Relaxed HPR for qualified buyers from Hong Kong and If confirmed, might boost sales from genuine Macau. buyers from Hong Kong and Macau. Zhongshan Unconfirmed has lagged adjacent PRD markets, but could also get a lift from the completion of the HK-Macau- PRC bridge and the Greater Bay initiatives. 6 May 2019 NDRC Urbanisation Reiterated that relaxed hukou registration is not Provides political cover for local level hukou equivalent to property restriction loosening. Hukou easing that in some cases has boosted market easing is mainly targeted at rural migrant workers and sentiment and triggered higher home sales Confirmed their families who already work and live in urban areas. volume. Hukou easing can be seen as support for genuine home demand rather than speculative. 1 May 2019 Jiangsu Suzhou Rental housing Legalised sub-divided flats for rental housing. Allowing subdivided flats boosts the supply of rental units, making rentals more affordable, Confirmed (even if the unit size can be tiny).
30 April 2019 Liaoning Dandong New Expanded scope of existing restrictions to include all Targets to cool the overheated market. restrictions, districts and residents, and both newly built and Price caps second-hand properties. Confirmed Purchased homes need to be held for five years before resale. Price increases to be capped at 0.6% mom for units in the same development. 30 April 2019 Hainan Sanya Affordable Planned to build more than 16,000 units of affordable Boost affordable housing supply. housing housing this year and another 24,000 units within five Confirmed years.
30 April 2019 Jiangsu Suzhou New New restrictions are said to be prepared to cap price Expect more targeted implementation of restrictions surges. market-calming policies in T2 cities like Suzhou Unconfirmed than T1 cities.
29 April 2019 Guangdong Shenzhen Accumulation Drafted a plan to allow qualified employees to withdraw Supports rental housing demand. fund the same amount of their rent from accumulation fund. Confirmed
101
Province/
Status Date ministry City Related Policy Details Impact 29 April 2019 Guangdong Shenzhen Affordable Drafted plans to support and regulate affordable Boost affordable housing supply. housing housing construction and management. Property Does not address structural tightness in the Confirmed projects will be jointly developed with nearby cities. ordinary housing market.
26 April 2019 Hainan Rental housing Circulated proposal to support the rental housing Boosts rental housing supply. market, including the provision of tax reductions, Confirmed targeted loans, and discounted lands to rental property developers. 25 April 2019 Jiangsu Suzhou Talent Suzhou Wuzhong Economic Development Zone is to sell Minimal impact on housing market. attraction a limited number of properties to qualified high-tech Confirmed enterprises and high-level talents at 20-30% discount to market prices. 24 April 2019 Shaanxi Xian Accumulation Increased down payment ratio and suspended Targets to cool the overheated market. fund withdrawal of accumulation fund for home purchases Confirmed outside the city.
24 April 2019 Zhejiang Hangzhou Mortgage First-home mortgage rates dropped to 5% premium Supports sales from genuine end-users. Unconfirmed above the benchmark, down from 10-20% premium in 2018. 23 April 2019 MOF, Shantytown Reduced construction plan by 51% yoy to 2.85mn units The lower construction target and less cash MOHURD redevelopmen Confirmed this year. compensation would weigh on the property t sales. 23 April 2019 MOHURD Crackdown on MOHURD has reportedly asked its local branches to go Mainly targets illegal villa projects. But high-end, illegal villa Unconfirmed through all villa projects since 2003 and report the low-density projects may also face stricter, projects status of inspection and rectification on the illegal ones. slower approvals. 23 April 2019 Hubei Wuhan Price control Wuhan MOHURD is said to set caps in price increases in If confirmed, new restrictions should cool the housing, rent, and land sales. overheated market. In practice, Wuhan is likely Cumulative increases in residential housing prices and to be less stringent in implementation of price Unconfirmed land sale prices are said to be capped at 5% from 2019 caps than T1 cities. to 2021. Rental levels should be limited at 40% of average disposal income per capita. 22 April 2019 Shanghai Shared-home Residents in the city without a local hukou (household Encourages share-home ownership market and ownership registration) will be eligible to buy shared-equity homes boost demand; however, supply of affordable Unconfirmed from3Q19. housing remains insufficient to significantly impact the underlying supply shortage in the ordinary housing market.
102
Province/
Status Date ministry City Related Policy Details Impact 22 April 2019 MOHURD, Price control Joint survey by MOHURD and State Council Tier 2 cities identified as overheated are likely to State Council Development Research Centre shows Q1 property issue new restrictions such as price caps. But DRC Confirmed market is overheated in some Tier 2 cities. implementation is expected to be less stringent than in Tier 1 cities, allowing developers in Tier 2 cities some room for de facto price increases. 21 April 2019 Inner Mongolia Hohhot Talent Qualified graduates may purchase homes at half of Not much impact. Unless there is another attraction market prices and can enjoy a minimum 20% down commodity boom, Hohhot has few attractive Confirmed payment. economic opportunities for talent. Qualified talent may enjoy the first two years rent-free if living in rental apartments. 21 April 2019 Zhejiang Ningbo Talent Offers home purchase credit of 600,000 yuan for Potentially a big short-term boost for home attraction qualified high-level talent, and 80,000 yuan for qualified sales, given the experience of similar policies in Confirmed graduates up to 80,000 yuan. cities like Nanjing. Ningbo is an appealing T3 city in the core YRD region. 18 April 2019 MNR Land supply Requires prefecture-level or above cities to adjust land Gives guidance on land supply policies based on supply according to house inventory levels. Cities with house inventory. But implementation at local Confirmed house inventory of more than 18 months should governments might be slow in practice. reduce/ stop land supply; those with inventory less than 12 months should increase/ accelerate land supply. 16 April 2019 Hunan Changsha Second-home Provincial government increased deed tax to 4% by Moderate impact on second-home demand – purchase cancelling the previous preferential rates of 1-2% supply pipeline is more important. (depending on unit size) for second-home purchases. Tight new home supply in 1Q19 drove up prices despite lower sales volume. Key question for Confirmed price outlook is development speed on 18.18m m2 GFA land sold in 2018, up 49% yoy.
MOHURD identified Changsha as having an overheated housing and land market in 1Q19. 12 April 2019 National National Accumulation Reduced maximum accumulation fund loan size for Tweaked allocation of public housing loans to Housing Fund fund second-home purchases. encourage first-time buyers while restricting Management Confirmed second-home purchases, which include an Centre Streamlined procedures for first-home purchases of investor-buyers. affordable housing. 11 April 2019 Guangdong Foshan Accumulation Increased accumulation fund loan ceiling to 500,000 Moderate support for real demand. fund yuan Confirmed
103
Province/
Status Date ministry City Related Policy Details Impact 9 April 2019 NDRC Urbanisation 2019 Urbanisation Reform Plan calls for hukou reforms: National-level stamp of approval for ongoing - Cities with 1m-3m urban population: remove wave of city ‘talent attraction’ measures that all hukou restrictions involve eased hukou approval processes for key - Cities with 3m-5m urban population ease people. Confirmed restrictions for qualified population (work, education status etc) Will likely spur more such measures and - Megacities to improve hukou points system, intensify talent competition. increase scale of settlement - Deepen and support key city clusters 8 April 2019 PBOC Mortgage PBOC Credit Reference Centre tested a new personal Reduce investment demand when the new credit rating system that will crack down on sham system goes into operation, reportedly soon. Unconfirmed divorces used to avoid higher down payments and Market estimates are that such purchases made borrowing rates for second-home purchases. up to 20% of sales at certain times. 4 April 2019 Hainan HPR Exempted qualified ‘talented persons’ from the general Boosts home demand. purchase restrictions applied non-locals Confirmed
2 April 2019 Hebei Shijiazhuang Accumulation Suspended housing accumulation fund loan issuance for Aims to contain housing demand within the city; fund loan purchase of properties outside the city. small negative impact on neighbouring cities. Confirmed
2 April 2019 Beijing Shared-home Give shared-equity homeowners equal access rights to Makes shared-equity housing more desirable ownership local education. but doesn’t tackle the underlying home supply Confirmed shortage.
1 April 2019 MOHURD Construction New standards for construction safety takes effect. It Increases construction costs. safety increased the technical requirement for construction structures. Confirmed Rebar uses are expected to increase by 3%-5% for ordinary residential buildings and by 10% for basement parking. 27 March 2019 Shandong Jinan Property agent Jinan city issued circular targeting rumour-mongering Likely just a temporary measure, targeting property agents and developers strengthening the pre- property agents and rumour-mongering Confirmed sale project management process developers.
104
Province/
Status Date ministry City Related Policy Details Impact 26 March 2019 Hainan Accumulation Resume programme that allows homebuyers to transfer Loosen accumulation fund policy to support the fund their commercial bank's loan into accumulation fund rigid demand. Confirmed loan to enjoy a lower lending rate.
22 March 2019 Shandong Jinan Price control Remove home prices caps, while keeping house purchase Boost home demand and developer profits. restrictions in place. Confirmed
21 March 2019 Henan Zhengzhou Home provident First-home maximum loan size increased to 800,000 yuan Boost home demand. fund loan per household from 600,000 yuan
Confirmed Maximum loan size for other home purchases increased to 600,000 yuan from 400,000 yuan
21 March 2019 Hebei Shijiazhuang Hukou Scrap requirements on hukou applicants to provide Boost home demand. evidence of stable employment and housing situations. Confirmed The city then decided to fully remove restrictions for hukou applicants 20 March 2019 Shandong Heze Hukou A rural resident transferring their hukou to a local urban Boosts low end home demand. (Chengwu area may enjoy a first-home purchase subsidy of 300 country) Confirmed yuan/m2.
20 March 2019 Hainan Talent attraction R&F Property Chairman Li Sili claimed that Hainan Province The key question is if Hainan will relax purchase had drafted property sector loosening policy for release in restrictions on non-local buyers that traditionally Unconfirmed 1H18 that would include talent attraction policies. play an outsized role in the local market.
18 March 2019 National Overall Vice Premier Hang Zheng called for local governments to Property policy mechanism pilots (including the bear primary responsibility in market regulation. He stated property tax) are a small step towards eventual Confirmed that the government would implement a pilot scheme as implementation. part of a longer-term policy mechanism for the property market during an inspection at the MOHURD. 13 March 2019 Guangdong Shenzhen Mortgage The Shenzhen branches of the big four banks lowered their Eased mortgage availability set to boost sales in mortgage rates for first-time buyers from 10% (NOT ppts) Tier 1 and Tier 2 cities. Unconfirmed above the central bank benchmark rate to 5% above benchmark. 11 March 2019 NPC NPC Property Tax The NPC expects to draft a property tax law in 2019, Even if a draft law is completed, effective according to NPC Standing Committee Chairman Li implementation is a few years away. Confirmed Zhanshu.
105
Province/
Status Date ministry City Related Policy Details Impact 10 March 2018 Shanghai VAT Shanghai lowered its value-added tax (VAT) on second-hand The adjustment is symbolic but moderate as the home transactions to 5.3% from 5.6% with effect March 7. VAT accounts for only a small part of the total Unconfirmed transaction price.
7 March 2018 Jiangxi Ganxian Pre-sale Ganxian county in Jiangxi province has issued a circular to Indicative of downward price pressure in the local country forbid developers from selling homes at discounted prices. market. Confirmed
5 March 2018 NPC Overall This year’s Government Work Report omitted phrases like Confirms the shift away from national one-size-fits- “curbing the rise of real estate prices”. all property market policy to greater room for cities Confirmed to set property policy according to local market conditions. 2 March 2018 CBIRC, MNR Rural land The CBIRC and MNR jointly issued a circular extending rural Central government is taking a cautious approach reform land-backed collateral financing pilots to December 2019. to land reform, which involves conflicting vested Confirmed interests and social goals without a simple solution.
27 Feb 2019 Shaanxi Xian Hukou University-educated people and local business owners a Potentially a demand boost, as Xian hukous are eligible for a local hukou with immediate effect regionally attractive and may permit buying a Confirmed second property in the city.
25 Feb 2019 Jiangxi, Nanchang, hukou Newly offer a qualification path to a local hukou for non- Microeasing policy amid competition for talent Liaoning, Dalian, residents who hold a Secondary Vocational School among tier 2 cities. Gansu and Lanzhou, Confirmed Education diploma Jiangsu Xiangyang and Changzhou 21 Feb 2019 Anhui Fuyang Land Removed its price restriction policy on land sales The policy change is unsurprising given the sluggish land market in Fuyang this year. Several land Unconfirmed The city will no longer cap prices of projects built on land auctions in the city have failed in recent months, sold via primary land auctions sharply contrasting with Fuyang’s hot land market in 2018. 15 Feb 2019 Beijing Rental housing Lowered the rental tax for individual residential housing to Continue to support rental housing development. 2.5% from the previous 5%. Confirmed
14 Feb 2019 Shanghai Stock ABS issuance Tightened ABS issuance for developers and rejected Further restriction of developer financing Exchange several applications. channels and business expansion with impact on Unconfirmed smaller developers.
106
Province/
Status Date ministry City Related Policy Details Impact 12 Feb 2019 Shanghai Prices control Shanghai Housing Management Bureau reiterated that With signs of local mortgage loosening, this aims its policy priority for the housing market in 2019 is to to limit market expectations on price rises. Confirmed keep Shanghai home prices stable
9 Feb 2019 Hainan Haikou HPR Prevent home buyers from using a fake document to Closes a loophole in existing policy controls. purchase a home, thus circumventing HPR Confirmed
30 Jan 2019 Shanghai Property tax Raise deduction ratio for commercial property value This does not apply to residential property and is assessments in determining property tax to 30% from part of the tax and fee cuts the government is Confirmed 20%. The change is aimed at reducing property tax for introducing throughout 2019. enterprises and individuals. 27 Jan 2019 Sichuan Chengdu Accumulation Chengdu city required to use mortgage records when Echoes national policy framework of policy fund identifying second-home buyers for the purposes of the tightening. Confirmed housing accumulation fund loan process
24 Jan 2019 The CPC Central Xiongan The central government will encourage real estate Mixed ownership model aimed to make housing Committee and property investment trusts and other property-related financial affordable for all to live in; the State development innovation products for the new Xiongan economic zone Council south of Beijing. Confirmed Xiongan’s property development will focus on the shared ownership (government/individual homebuyer) model.
20 Jan 2019 MOHURD Rental housing Expand the pilot programme to build rental housing on Continue to support rental housing projects collectively owned rural and urban land to 18 cities from while preventing developers from using Confirmed previous 13 cities “substituting leasing for buying” to sell rental housing; 14 Jan 2019 Hainan Haikou Home sales Prohibited public institutions and companies from Aimed non-local speculators and target investors buying homes who might look to get around existing Confirmed restrictions by buying homes through Restricting second-home purchases by residents who companies; had moved to the city before 22 April 2018 9 Jan 2019 Guangdong Guangzhou Hukou Guangzhou lower its age threshold for people with Will potential boost property sales, as bachelor from outside the city to become Guangzhou Guanghzou hukou are desirable. Confirmed residents. Qualified candidates have a bachelor degree and aged 40 years old or under up from previous 35; has a master degree and aged 45 years old or under from 107
Province/
Status Date ministry City Related Policy Details Impact previous 40; or has a Phd degree and aged 50 years old or under from previous 45.
4 Jan 2019 Shandong Qingdao Pre-sales Qingdao’s Gaoxin district government suspended the This particular story concerning Gaoxin district in lottery system for house purchases. Qingdao gained a lot of traction domestically, as some saw it indicative of weak demand Confirmed pressures more broadly; compounding recent negative headlines concerning China’s economy. However, we see this as indicative of the hyper- localised real estate market in China. 28 Dec 2018 Hunan Henyang Prices Capped Henyang initially issued a circular to remove its cap on The local government stated that it misjudged new home prices, but within a day revoked the circular, the complexity of house price dynamics. We Confirmed thereby reinstating the cap. suspect it overstepped the bounds of permitted loosening and retreated after guidance from provincial or national authorities. 24 Dec 2018 NPC Rural land The NPC, while reviewing draft amendments to the Law on Land Management and to the Law on Urban Real Estate Management, deleted the provision that land for Local governments remain in control of land non-agricultural construction must be state-owned or supplies and further changes may increase more Confirmed originally be rural collectively-owned land. industrial land being supplied on the market. This would be beneficial to larger cities that are The NPC also approved plans to extend rural land facing land supply shortages. reform pilots by another year, to 31 December 2019.
21 Dec 2018 Guangdong Guangzhou HPR Removed restrictions that prohibited individual homebuyers from purchasing residential flats in In effect, this makes more supply of affordable developments zoned as commercial property, such as Confirmed housing available and is unlikely to spur converted office blocks. speculation in the current environment.
21 Dec 2018 Guangdong Guangzhou Price caps It has been reported that some developments were allowed to increase prices, however, this is believed to Unconfirmed Very soft easing measure be within certain limits.
108
Province/
Status Date ministry City Related Policy Details Impact 20 Dec 2018 Guangdong Zhuhai HPR According to unconfirmed internet reports, Zhuhai city in Guangdong province has partially eased purchase It is too early to say whether these are indicative restrictions in two districts, by allowing non-locals to of loosening. It is clear that policymakers still Unconfirmed buy a single property providing they show one-year of tax receipts, rather than the previous requirement of remain satisfied with current housing curbs five-years’ worth.
19 Dec 2018 Shandong Heze Sales Heze initially announced it would scrap the requirement restriction that a homebuyer must hold onto a property at least two years after purchase before being allowed to sell it Heze become the first city to remove home on. resale restriction since 2016 Confirmed Soon afterwards, the Shandong provincial-level housing bureau said it was looking into the situation, but so far it seems the policy has been allowed to stand.
18 Dec 2018 NPC Rural land The NPC may approve plans to extend rural land reform We think the main reason for the extension reform pilots, according to 21st Century Business Herald. concerns issues regarding the revision of land administration laws, indicating central Confirmed government wariness of conflict with local governments when implementing reforms.
14 Dec 2018 NDRC Bond issuance The NDRC has issued a circular encouraging enterprise bond issuance by NDRC-approved companies; however, Intended to support the real economy. Confirmed funding usage is constrained to social housing projects only and may not be used to finance commercial real estate projects. 12 Dec 2018 Liaoning Cash subsidy Continued destocking policy: encouraging rural people Liaoning is the only province to announce it will to move to the cities by offering them a cash subsidy for continue property destocking policy, indicating Confirmed home purchase and calling for banks to offer that its property markets are behind in the preferential mortgage lending rates to such buyers. recovery cycle.
6 Dec 2018 Guangdong Dongguan Ordinary The city has raised the city’s price standard for ordinary Allows more home buyers to benefit from lower housing housing by 117 yuan per sqm for 2018. Confirmed tax rates for ordinary housing transactions.
109
Province/
Status Date ministry City Related Policy Details Impact 4 Dec 2018 Guangdong Guangzhou Rental housing Guangzhou has forbidden developers to sell their self- Minor impact in the context of already tight held rental housing. local policies. Confirmed
3 Dec 2018 Shanghai Shanghai Rental housing Shanghai offered three plots of land designated for Shanghai planning to have a total of 200,000 developing purpose-built rental housing to the market Confirmed rental units available by year-end (in total at least 3,200 units).
30 Nov 2018 State Council Regional The State Council said that China would assist regions City cluster formation supports urbanisation and development with slower economic growth and take measures to long-term demand property demand. Confirmed combat financial risks. The creation of a regional development coordination mechanism will help the city cluster development plan 28 Nov 2018 Guangdong Mortgage Local officials in Guangdong denied a report that a local Illustrates market sensitivity to home default court was collecting data on individual mortgage hints. defaults, which sparked market speculation that the Unconfirmed housing mortgage default rate was rising in the province.
26 Nov 2018 Jilin Changchun Pre-sale Changchun city, the capital of Jilin province, will require Increases financing costs for developers, and developers to set aside at least 30% of pre-sale reduces flexibility in cash management for land Confirmed proceeds to ensure that projects are completed. purchase.
21 Nov 2018 Beijing, Mortgage Some banks have reportedly cut mortgage interest rates The market thinks mortgage rates may have Shenzhen, in major cities including Beijing, Shenzhen, Guangzhou, reached a peak and will now enter a downturn Guangzhou, Hangzhou, Ningbo, Foshan cycle. Unconfirmed Hangzhou, Ningbo, Foshan 20 Nov 2018 Hebei Guan HPR Guan is rumoured to be considering easing home Substantial move if concerned as HPR was purchase restrictions for employees of local companies regarded as a central government line in the Unconfirmed that have paid >1mn yuan in tax over the past 12 sand for policy loosening months 17 Nov 2018 Jiangsu Nanjing Mortgage Some banks in Nanjing have cut mortgage interest rates Rumour fuels speculation that policy is turning for first home buyers from 1.20x benchmark rate to supportive. Unconfirmed 1.15x
110
Province/
Status Date ministry City Related Policy Details Impact 16 Nov 2018 Zhejiang Suzhou Home purchase Xiangcheng district in Suzhou city tightened home Innovative further policy against investment restrictions purchase restrictions, by adding a requirement that demand that may inspire other districts and non-locals score 600+ points on the hukou application cities to follow suit. scoring system in order to buy a local property, on top of Confirmed showing proof of one-year’s local tax payments.
This is on top of the existing requirement to provide a one-year tax payment receipt. 14 Nov 2018 Jiangxi Land and rental Pledge to increase the supply of land and rental housing Minor impact in context of already tight local housing supply in order to stabilise the property market. policies. Confirmed
12 Nov 2018 MOHURD Property agents The Ministry of Housing and Urban-Rural Development The latest announcement follows a government and developers (MOHURD) listed 101 dishonest behaviours that would enforcement campaign kicked off in July, aimed affect the credit scores of property developers, agents at clamping down on market misinformation and Confirmed and financial institutions in MOHURD’s property sector similar behaviour seen to have fueled price credit rating system. speculation.
8 Nov 2018 Guangzhou Shenzhen Talent housing Low-cost land to be supplied (70% discount to market Negligible impact on the ordinary housing value) for developing housing designated for talented market, which is structurally undersupplied Confirmed workers.
28 Oct 2018 Guangdong Shenzhen Mortgage Some banks in Shenzhen have cut mortgage interest Still believes such news a mitigate downward rates for first home buyer from 1.20 above the central market pressure; not major support yet Unconfirmed bank benchmark rate to 1.10 above according to China Securities News 25 Oct 2018 Guangdong, Guangzhou, Mortgage Some banks have cut mortgage interest rates in major Mitigate downward market pressure; not major Beijing, Zhejiang Beijing, cities including Beijing, Hangzhou and Foshan, according support yet Unconfirmed Hangzhou to 21st Century Business Herald. and Foshan 20 Oct 2018 National Income tax The Ministry of Finance and the State Administration of The government intention is to boost household deduction Taxation jointly released a proposal for public disposable income and make housing more consultation for changes to the personal income tax that affordable for first-time home buyers. would go into effect on 1 January 2019. Confirmed Boost home purchases by first-time buyers, at a Mortgage interest payment on a first home would time when price cap policies, purchase be tax deductible for up to 12,000 yuan per year restrictions, resale restrictions and mortgage (one taxpayer per household, first home only). restrictions remain in place.
111
Province/
Status Date ministry City Related Policy Details Impact Rental tax deduction ranges from 800 yuan/month May cushion sales but seems unlikely by itself to in small cities to 1,000 yuan in mid-sized ones and trigger another boom. 1,200 yuan in big cities.
18 Oct 2018 Guangdong Shenzhen Land Developers are required to complete all residential Does not solve underlying supply shortage issue property projects within four years, while all new for Shenzhen, only ameliorates it. projects must be started within one year of land purchase. Similar measures were adopted before in Confirmed Guangzhou and Beijing and have long existed on paper in national regulations. However, they have never become widespread because most local governments are reluctant to risk scaring off developers. 15 Oct 2018 Fujian Xiamen HPR The media reported that the city would totally remove Unlikely to happen as it would contradict central purchase restrictions this year. government policy, but it indicates downward Unconfirmed pressure in the local market.
14 Oct 2018 Guangdong Zhongshan Pre-sale Zhongshan pilot program that adds a “sale on If the Zhongshan pilot is successful, other cities completion” clause—ie precludes presale—for a series may follow suit. Confirmed of land parcels up for auction between 10 Oct – 14 Nov.
9 Oct 2018 State Council Shantytown The State Council reiterated its position that the Dragging effect on home sales in lower tier cities rebuilding shantytown redevelopment compensation changes that adjust policy. Confirmed should be implemented based on local conditions.
8 Oct 2018 Zhejiang Hangzhou hukou Hangzhou has eased hukou restrictions by providing a Potentially a significant demand boost, as qualification path to a local hukou by providing for Hangzhou’s hukous are very desirable and may Confirmed skilled people under 45 and working in Hangzhou for 3 allow buying another property in the city. years, and their spouses. 1 Oct 2018 Fujian Xiamen hukou Xiamen has loosened hukou restrictions by offering a Potential demand boost, as Xiamen hukou are qualification path to a local hukou for non-residents quite desirable and may allow buying another Confirmed who have paid five years’ social security tax payments property in the city. and own a local property. 27 Sep 2018 Guangdong Guangzhou hukou Guangzhou has loosened its hukou restrictions by Smaller policy change than Xiamen and shortening the required social security tax payment Hangzhou (above), but Guangzhou is a first-tier Confirmed term to six months from the previous 12 months city with a stronger appeal for migrants.
112
Province/
Status Date ministry City Related Policy Details Impact 25 Sep 2018 MOHURD + 6 Pre-sale system MOHURD reportedly asked 6 provinces to carry out an Long-term risk that is tricky to gauge at this provinces in-depth study of the presale system and whether it point. (Hubei, Sichuan, Unconfirmed should be retained Jiangsu, Henan, Guangdong, Liaoning) 23 Sep 2018 Guangdong Pre-sale system Guangdong Provincial Housing Association is soliciting This is at an early stage of policy formation, and public opinion on the proposal to phase out the presale if goes ahead, it will not be in the short term but Confirmed system of housing development. phased in over years and likely on a regional basis. It would likely start with pilots in select large cities. 19 Sep 2018 MOF Mortgage MOF is reportedly drafting rules to allow income tax If it goes ahead the aim would be to support interest deductions based on mortgage interest payments or consumption rather than drive up house prices. Unconfirmed payment rental payments effective 1 January 2019 As such it might be limited to lower-priced deductions ‘ordinary’ housing. 16 Sep 2018 Policy expert Propery tax Jia Kang, director of China Academy of New Supply-side Even if we see progress on property tax Economics and former head of the finance ministry’s legislation, effective implementation will still be Unconfirmed research institute, said the submission of the property several years down the road. tax bill to the 13th NPC on 7 September means the NPC will consider it within five years 14 Sep 2018 Beijing Beijing Accumulation Accumulation fund borrowing limit to depend on how Minor impact in context of already tight local fund loan many years the employee has made contributions. policies
Confirmed Broader definition of second-home buyers to include anyone who has ever taken out a mortgage or accumulation fund loan. 5 Sep 2018 Guangdong Zhanjiang Market order Month-long crackdown on property agent and Likely just a temporary measure, targeting developers that have violated regulations. property agents and rumour-mongering Confirmed developers.
3 Sep 2018 Qinghai Property agents Qinghai province issued circular targeting property Largely symbolic and developers agents and rumour-mongering developers and Confirmed strengthening the pre-sale project management process
30 Aug 2018 Jilin Changchun Shantytown Replace cash subsidies with compensation in the form of Will damp local market sentiment, could slow sales rebuilding physical housing units for shanty town rebuilding projects projects Confirmed
113
Province/
Status Date ministry City Related Policy Details Impact 28 Aug 2018 Sichuan Down Raise the minimum down payment for second home Moderate impact on a segment of demand payments purchase in some regions to 50% from 40% (with higher Confirmed down payment requirements in many districts of Chengdu, the capital)
27 Aug 2018 Hainan Haikou Pre-sales Developers with pre-sale or completed property for sale Will slow reported primary price growth, while may not increase property prices for six months secondary market prices are likely to outpace Confirmed primary
22 Aug 2018 CBRIC Developer Regulators reportedly told trust companies to stop Chokes off funding to smaller developers, thus financing issuing new trust products to finance real estate driving industry consolidation. Unconfirmed projects
21 Aug 2018 Beijing Beijing Rental housing Ten property rental agencies announced self-regulatory A stop-gap measure that seeks to address rising Realtor rent measures to stop "malicious competition" such as using social concern over sharp rental increases. Association loans to acquire apartments at above-market prices However, there is unresolved conflict between Confirmed affordability and the much higher rents needed Several agencies, eg Homelink and 5i5j.com, pledged to make rental housing development not to raise rents and to release more rental units commercially attractive. 20 Aug 2018 MOHURD Haikou, Home prices MOHURD held meetings with local officials with in five Continued spread of local-level policy tightening Sanya, Yantai, control cities with rapid house price growth in July among more lower-tier cities in response to Confirmed Yichang, and local market conditions, while avoiding a Yangzhou national-level general tightening. 16 Aug 2018 Hainan Land usage Hainan is tightening the terms on which it grants land Land-use grants are one tool among many for for non-real estate uses. promoting industrial upgrade and encouraging service sector growth. Typical terms for industrial land use are a five-year initial phase, with the possibility of renewal no more Confirmed than twice.
Land-use terms are set ten years for modern service industries such as tourism, convention and exhibition, medical and healthcare, and low-carbon manufacturing, and 15 years for military-civilian integration. 15 Aug 2018 Guangdong Shenzhen Property Shenzhen issued a circular targeting property agents Stop-gap measure that does address supply- agents and rumour-mongering developers demand fundamentals. Confirmed
114
Province/
Status Date ministry City Related Policy Details Impact 15 Aug 2018 NDRC Price control NDRC pledged the government would continue property More central government coordination of local control policy and keep home prices stable government property policy as new cities see Confirmed home prices gather steam.
14 Aug 2018 Chongqing Price Police will take part in the city’s housing speculation Curbing any unlawful activity would have a speculation investigation symbolic effect on market dynamics.
11 Aug 2018 Jiangsu Nanjing Sales Restrictions on housing purchase by quasi-public Minor impact Restriction institutions and enterprises Confirmed
9 Aug 2018 Shanghai Mortgage ICBC and ABC branches in Shanghai initially reported to Not a signal of impending nationwide easing. Lending have lowered their mortgage lending rates, but they Confirmed later reversed this policy after media publicity
8 Aug 2018 MOHURD MOHURD Investigation MOHURD officials discussed high home prices with The central government will continue to officials in Chengdu and Sanya coordinate local governments in policy Confirmed adjustment.
6 Aug 2018 Liaoning Shenyang HPR Shenyang, the capital city of Liaoning province, has Continues policy aimed at curbing speculative expanded the HPR policy to all of the city demand. Confirmed
31 July Politburo Overall The Politburo maintained the home price control policy We expect that tight policy towards the property sector will continue. More cities will tighten Confirmed local policy and the mortgage lending rate will increase. 30 July Jilin Changchun Price control All units from developers including completed units Closes the loophole whereby developers were must receive housing bureau sale price approval before allowed to adjust prices of completed units (but Confirmed sales begin not units sold pre-completion).
29 July Hubei Wuhan Rental housing Wuhan government pledges to increase rental housing Continue to support rental housing projects supply in cities. However, the city is capping the rental while preventing developers from using Confirmed housing leasing period at 20 years, while prohibiting “substituting leasing for buying” to sell rental “substituting leasing for buying”. housing
115
Province/
Status Date ministry City Related Policy Details Impact 25 July 2018 Guangdong Shenzhen Sales Homebuyers may not resell a property until at least Aimed at curbing speculative demand restriction three or five years after obtaining the property ownership certificate Confirmed
Tightens rules around housing purchases by quasi-public institutions and enterprises in a bid to curb speculation. 24 July 2018 Hunan Differential The province will implement a differentiated property Echoes national policy framework of policy property control policy to strictly cap home price growth for cities tightening in overheated, while policy support in control policy with property inventory turnover ratios of less than 6 high-inventory cities months.
Reduce cash subsidies for shantytown rebuilding Confirmed projects in cities with property inventory turnover ratios of less than 15 months.
The province will continue to implement a cash subsidy policy and destocking policy for cities with high property inventory. 20 July 2018 Nationwide Property tax The central government has plans to accelerate Our view of the news is that work regarding preparation work for a property tax, according to the property tax legislation will likely be accelerated, Unconfirmed 21st-Century Business Herald. but implementation is unlikely to be moved forward. 19 July 2018 China Local branches of China Development Bank (CDB) We expect that a tightened policy on shanty Development reportedly retain their approval authority regarding town rebuilding projects and efforts to move Bank Confirmed loans for new shanty town rebuilding projects, away from a cash subsidy for physical housing according to Xinhua news, quoting an interview with could have a negative impact on property CDB officials. markets in some small cities. 12 July 2018 MOHURD Shanty town China said to implement shantytown redevelopment The move to end cash compensation for rebuilding reform on a case-by-case basis displaced residents in shantytown Confirmed redevelopment schemes will be encouraged in cities with tight local government financing conditions. 4 July 2018 Guangdong Land and Guangdong issued five measures for the property Provincial focus on housing supply issues will affordable sector. have a long-term impact only. Cities are housing Increase residential housing supply supplementing this with demand-management projects Confirmed Increase affordable housing supply policies to influence short-term price trends Preventing property-related financing risks Improve compensation mechanism for land requisition and land requisition procedures 116
Province/
Status Date ministry City Related Policy Details Impact Improve rural infrastructure-related issues such as redeveloping old villages, upgrading farms
3 July 2018 Chongqing Chongqing Mortgage Removes first-time buyer mortgage subsidies that could Removes strong supportive policy, and helps subsidy be as much as 40% of the home buyer’s income tax alleviate fiscal burdens for local government. payment. Confirmed Increased various property taxes on buyers and developers such as land-value appreciation tax for certain types of commercial property. 2 July 2018 Hunan Changsha HPR, sales Homebuyers may not resell a property until at least five Aimed at curbing speculative demand restriction years after obtaining the property ownership certificate.
Local residents may only buy a second property at least four years after purchasing the first and obtaining the property ownership certificate.
Confirmed Non-local residents need to have settled in the city with stable employment for one year to be eligible to buy a property.
Bans companies from purchasing property.
Local government pledges 60% of new housing supply will be affordable housing. 2 July 2018 Shanghai Sales Tightens quasi-public institutions and enterprises from Follows Xian in both curbing speculation and restriction housing purchases in a bid to curb speculation. guarding against corruption. Confirmed
1 July 2018 Hebei Dachang Individual Real Dachang country in Hebei province issued a Aimed at curbing speculative demand as some estate circular to suspended individual real estate of home buyers use collateral business as a way Confirmed collateral collateral business to avoid home purchased restriction policy business 1 July 2018 Yunnan Kunming HPR, price cap Homebuyers from outside Yunnan province may not buy Moderate dampening a second property in the capital, Kunming (five central Confirmed districts and three national level tourism parks). According to market estimates, Kunming local residents accounted for 40% of home sales in 2017, other Yunnan buyers 24%, 117
Province/
Status Date ministry City Related Policy Details Impact Effective price cap of +6% over 12 months imposed via out-of-province buyers 36% (compared with presale approval system. historical peak of 80%).
29 June 2018 MOHURD + 6 Market Broad efforts to crack down on irregularities in 30 These efforts in themselves are largely agencies compliance major cities symbolic, but local officials in the 30 major Punishing property agencies and local developers cities identified will feel pressure to cool off that mislead home buyers by falsely advertising their markets. apartments.
Confirmed Punishing property agencies and local developers that offer pre-sales units at prices above those approved by the local government.
Punishing any property agency that did not meet compliance requirements or violated laws and regulations. 28 June 2018 Chongqing Broad Banks may not extend new mortgages to households These measures may cool off a hot market; if regulation that already own two residential units and have not the local government will continue to including outstanding related housing loans, nor to non-local tighten after municipal officials were mortgages residents without one-year of local social security or interviewed by MOHURD. business tax contributions.
Local bank regulators to ensure that down payments are not funded through bank loans. Confirmed
At least 70% of residential development land to be allocated for ordinary commercial residential development; increase share of small and medium-sized units.
Homebuyers may not resell units for two years after purchase. 28 June 2018 NDRC Overseas bond An NDRC official reportedly called for developers to use Further restriction of developer financing issuances funds raised from overseas bond issuances for domestic channels and business expansion with bigger Confirmed debt repayment rather than for investing in domestic impact on smaller developers. property projects or replenishing working capital.
118
Province/
Status Date ministry City Related Policy Details Impact 27 June 2018 CDB Shanty town China Development Bank (CDB) denied reports that it A sudden stop scenario is unlikely amid jittery rebuilding had halted PSL financing for cash compensation in markets and with real estate is propping up projects shantytown redevelopment projects, claiming instead industrial activity. that some local governments had halted these projects owing to greater scrutiny on local debt. A gradual roll-back seems plausible: now that Unconfirmed small city inventories are down and markets CDB will reportedly also centralise approval rights for have improved. This obviates the need for this new projects in the bid to increase control and improve support that accounted for around 20-30% of management over shantytown rebuilding projects. transactions in smaller cities last year and this year ytd. 26 June 2018 Zhejiang Hangzhou Sales Suspend quasi-public institutions from housing Follow Xian to curb speculation as well as restriction purchases in a bid to curb speculation. prevent corruption. Confirmed
25 June 2018 Hunan Changsha Resale Homeowners must hold their real estate registration Further example of tightening measures restriction certificate for at least five years before being permitted extending to lower-tier cities. Confirmed to resell their property.
25 June 2018 Shaanxi Xian Sales Xian issued a circular to suspend quasi-public Aims to curb speculation as well as corruption. restriction institutions from housing purchases in a bid to curb Confirmed speculation.
19 June 2018 Ministry of Real estate The real estate registration database has gone into Not likely to accelerate the implementation of Natural Registration operation, connecting local databases across China. property tax (excluded from the legislative Confirmed Resources database agenda this year).
6 June 2018 Guangdong Shenzhen Housing 60% of new developments must be used to construct Squeeze in commercial residential land supply is system reform policy-supported housing, such as rentals for talented likely to sustained continued home price growth workers, affordable and public rental housing. in Shenzhen over the long term.
The remaining 40% can be used for commercial Confirmed residential development
Home supply plan 2018-20: 420k new homes, of which 250k policy units 2021-25: 450k new homes, of which 250k policy units 2026-31: 830k new homes, of which 500k policy units
119
Province/
Status Date ministry City Related Policy Details Impact 5 June 2018 Hubei Yichang Resale Homeowners must hold their real estate registration Further example of tightening measures restriction certificate for at least three years before being extending to lower tier cities Confirmed permitted to resell their property
5 June 2018 Jiangsu Xuzhou Resale Homeowners must hold their real estate registration Further example of tightening measures restriction certificate for at least three years before being extending to lower tier cities Confirmed permitted to resell their property
1 Jun 2018 CBIRC Rental housing Will allow insurance funds to invest in long-term rental Minor impact in the near term given low rentals housing market in selected cities directly or via asset Confirmed management subsidiaries
29 May 2018 Shaanxi Xian Rental housing New housing developments required to designate a Modest support for rental housing development portion of the project for rental housing Confirmed
28 May 2018 Shanxi Taiyuan Mortgage Raised the down payment ratio for first-home buyers to Moderate impact on end-user demand 30% from 20% Confirmed
25 May 2018 Shandong Dalian Land Cap land premium ratio at 70% (defined as bid price Dalian policy is a continuation of tightening premium over opening price in primary land bids) measures to control land prices in line with the Confirmed Politburo decision that intends to take regulatory aim at the so-called ‘bubble assets’ 22 May 2018 Guangdong Zhuhai hukou Zhuhai raised the ceiling on first-home housing We are seeing increasingly aggressive policies in accumulation fund loans to talented people to 2.5m tier 2 and 3 cities in order to attract talent. Confirmed yuan from previous 500, 000 yuan.
20 May 2018 MOHURD MOHURD MOHURD Ordered local governments to stick to property control Overall property market policy likely to remain policies to ensure the stability of house prices. tight Confirmed
18 May 2018 Shanxi Taiyuan HPR Local residents restricted to owning no more than two A further example of local level tightening properties in six downtown districts and Gaoxin measures spreading to lower-tier cities. Industrial Park Confirmed Non-locals restricted to owning no more than one property in the downtown area
120
Province/
Status Date ministry City Related Policy Details Impact Non-locals are required to provide 12 months tax receipts in order to purchase their first home
17 May 2018 NDRC Theme park Much tougher requirements on theme park Raise scrutiny of theme park projects, especially development, including land use, and warns against large theme parks in lower-tier cities that may Confirmed property development disguised as theme park not be feasible development.
16 May 2018 Sichuan Chengdu HPR Extended HPR policy from individuals to households. This policy is in line with other local-level Only one family member per household may purchase policies that target speculative property property in the downtown area, whereas before demand. Confirmed multiple individuals from the same household could buy a downtown property each.
15 May 2018 Guizhou Guiyang Resale Prohibits selling newly built homes within three years of Part of an increasing number of lower-tier cities restriction purchase. issuing local-level restrictions targeting the Confirmed selling process.
15 May 2018 Liaoning Dandong Resale Non-local residents are not allowed to sell newly built Dandong lies on the border with North Korea, restriction homes within two years of purchase. and the government is targeting speculation Confirmed related to an anticipation of North Korea opening up. 9 May 2018 Guangdong Dongguan Price Developers restricted to setting presales prices for a Continuation of house price restrictions restriction given project no more than 10% higher than the spreading to lower-tier cities. developer’s previous project, down from the previous Confirmed 15% cap. This restriction is valid for six months after receiving the pre-sales license.
Developers are required to obtain local government approval before increasing prices. 8 May 2018 Heilongjiang Harbin Resale Buyers are forbidden from selling their property for This policy is in line with other local-level restriction three years after initial purchase. policies that target speculative property Confirmed demand.
121
Province/
Status Date ministry City Related Policy Details Impact 8 May 2018 Beijing Mortgage The Beijing branches of CCB,ICBC, and ABC have raised Modest further tightening for first-time buyers . lending their mortgage rate for first time buyers from 1.05 Unconfirmed above the central bank benchmark rate to 1.10 above according to Caijing News. 7 May 2018 Four Ministries Real estate Four ministries pledge to prevent overheating in lower- Aims to forestall speculation and rapid price development tier cities in areas near high-speed rail stations. rises, though local policy will be key Confirmed
4 May 2018 Guangdong Dongguan Accumulation Raise ceiling on first-home housing accumulation fund Support for genuine home demand, raising first- fund loans to 1.2mn yuan from 800,000 yuan. home ceiling in line with recent price rises, while seeking to cap investment demand Confirmed Keep upper limit on second-home housing accumulation fund loans at 800,000 yuan.
2 May 2018 Hubei Wuhan Accumulation Raise ceiling on first-home housing accumulation fund Support for genuine home demand, raising first- fund loans to 700,000 yuan from 500,000 yuan. home ceiling in line with recent price rises, while Confirmed seeking to cap investment demand Keep upper limit on second-home housing accumulation fund loans at 500,000 yuan. 1 May 2018 MOHURD Xi'an, Overall Officials from the Ministry of Housing and Urban-Rural The government vowed to keep property Haikou, property Development held meetings with governors in 12 cities regulation policies stable and consistent, and Sanya, policy emphasizing that the goal to regulate property sector introduce a long-term mechanism for real Changchun, remains unflinching and the controls will not be estate regulation. Harbin, relaxed. Confirmed Kunming, Dalian, Guiyang, Xuzhou and Foshan 27 April 2018 CBIRC Credit risk Nationwide inspections of riskiness of banks’ household Slow mortgage growth loan portfolios, including consumer loans misused for Confirmed property purchase
27 April 2018 CSRC, MOHURD Rental housing Encourage rental housing asset-backed securitization Modest support for rental housing development
Confirmed Pilot REIT issuance
122
Province/
Status Date ministry City Related Policy Details Impact 24 April 2018 Jilin Changchun Minimum Homebuyers must hold the related ownership Drives out short-term investors, slows sales ownership certificate for three years before selling on their volume overall period Confirmed property.
23 April 2018 Politburo Broad Called for close monitoring of financial and real estate Overall property market policy likely to remain markets to guard against risks tight Confirmed
19 April 2018 Hainan Minimum Homebuyers must hold the related ownership Aims to suppress potential speculative fever ownership certificate for five years before selling on their property. following the announced plan for Hainan to Confirmed period become a free-trade port status by 2025.
19 April 2018 Shandong Qingdao Minimum Homebuyers must hold the related ownership Expected to slow home sales and slow home ownership certificate for five years before selling on their property. price growth period Confirmed Local residents may not buy a second home in the downtown area 19 April 2018 Hainan Sanya Property Punish property agencies and local developers that Part of a likely slew of measures to tighten the agency mislead home buyers by falsely advertising apartments. property market in Hainan. Confirmed
17 April 2018 Hainan Crackdown on Punish property agencies and local developers that offer This follows the set of guidelines aiming to turn agencies and pre-sales units at prices above those approved by the Hainan into a free-trade zone by 2020, and a developers local government. free-trade port by 2025, the announcement of Confirmed which could spark fever-pitch speculation on the island, as investors seek to cash in on Hainan’s economic future 11 April 2018 MOHURD Accumulation MOHURD has announced a policy to reduce the Over time, it will reduce the size of local fund financial burden on individuals and enterprises by accumulation funds, a key funding source for Confirmed cutting their housing fund payments until 2020. home purchases.
10 April 2018 Hubei Wuhan Rental housing Wuhan city has pledged to offer at least 30,000 units of The aim is to ensure all residents can afford rental housing this year some kind of housing. Confirmed
123
Province/
Status Date ministry City Related Policy Details Impact 9 April 2018 Beijing Beijing Rental housing The Beijing branch of Development bank of China, ABC, This is helpful but may not be sufficient to bring CCB and Hua Xia bank have been selected to be the first funding costs below low rental yields in Beijing. Confirmed batch of banks to pilot programe that offer bank loans This means SOEs will take the lead in building to rental housing proejcts. The maximum loan period is rental housing. set at 25 years 4 April 2018 Hebei Shijiazhuang Subsidy for University graduates eligible for first-home purchase We are seeing increasingly aggressive policies in home purchase subsidy of 50,000-150,000 yuan depending on their tier 2 and 3 cities in order to attract talent. Confirmed educational level.
4 April 2018 Guangdong Shenzhen Housing Shenzhen plans to combine the mortgage and tax The intention is to dissuade homebuyers from information certificates related to home purchase into a single overstating the value of their property in order Confirmed system document. to obtain a higher mortgage.
3 April 2018 MOF Bond Allow local governments to issue special purpose bonds This should be used to replace existing for shantytown redevelopment projects. contingent liabilities from LGFV debt, as Confiremd opposed to encouraging local governments to take on new liabilities. 2 April 2018 Hainan HPR and Non-local residents will be banned from buying more Hainan is particularly susceptible to a frothy mortgages than one residential property in Hainan housing market as it is a popular vacation home destination. Downpayments set at 70% for non-local residents
Confirmed Homebuyers are only permitted to sell after holding the property for over five years
Developers cannot raise home prices within 6 months of registering them with the local government 30 Mar 2018 Shaanxi Xian Lottery system Limit construction of new downtown residential units The policy aims to curb the practice of for home Introduce a lottery system for homebuyers developers of giving preferential treatment to
buyers buyers who pay in cash.
27 Mar 2018 Guangdong Shenzhen Shantytown Sets max floorspace of new shanty town redevelopment Shantytown rebuilding projects are the main projects to 1.2 times the size of the original demolished source of land for local governments. It is likely unit. that developers leasing the new land will also Confirmed have to build a portion of affordable housing. Permits revelant departments to use legal means to force through the demolishment of the shanty towns.
124
Province/
Status Date ministry City Related Policy Details Impact 25 Mar 2018 Anhui Fuyang HPR Fuyang issued a new regulation that residents owning May put off short-term investors but little effect county two properties or more must hold a real estate on regular owners of property. registration certificate for five years before selling on Confirmed their property
24 Mar 2018 Liaoning Dalian HPR Local residents restricted to owning no more than two Expected to cool home sales in downtown area, properties in four downtown districts plus Gaoxin with prices supported by limited supply Industrial Park
Non-locals restricted to owning no more than one property in the downtown area
Resale of property bought in the downtown area only allowed after holding the associated real estate title for two years
Maximium home accumulation fund loan cut to 400,00 yuan from 450,000 yuan
Second-homes bought with home accumulation fund loans subject to a 60% down payment and lending rate 1.1 times the benchmark 21 Mar 2018 Hubei Wuhan Rental housing Rental housing offered to graduates at 20% discount to Expected to benefit more than 100,000 new market prices, and with lease terms up to five years graduates annually and provide incremental Confrimed (instead of three years normally) support for the property market over time.
20 Mar 2018 PBOC and Rental housing MOHURD Minister Wang Menghui restated government The central government is aiming to create a MOHURD intention to speed up development of rental housing long-term mechanism that would ease demand and shared ownership housing. and supply pressures on the property market, - 30% of new land supply in 2018-2020 would with rural housing and shared ownership be allocated to these two housing types housing being two options to do so. Confirmed - 51 SOE leading companies set up in 12 pilot cities
PBOC is likely to introduce preferential policies to support rental housing development in 1H2018,
125
Province/
Status Date ministry City Related Policy Details Impact according to Pan Gongsheng, vice governor of the central bank.
16 Mar 2018 Fujian Fuzhou Mortgage Increased mortgage rates to 10%-15% and 15%-20% We think that raising mortgage rates is an lending above the benchmark rates for first and second home effective tool for curbing housing sales, more so Confirmed purchases respectively than property purchase restrictions
15 Mar 2018 NPC Property tax The National People Congress did not include the China will not draft a property tax law this year property tax law into this year’s NPC legislative plan Confirmed
14 Mar 2018 Jiangxi Public rental Plans to extend the maximum duration of public rental Greater stability for tenants housing housing leases to five years, up from the previous three Confirmed years
12 Mar 2018 Guangdong Shenzhen Mortgages Mortgages (first or second home) are available only at Mortgage availability will remain tight in first-tier 5.88%, or 20% above 4.9% benchmark and heated second-tier cities owing to regulatory guidance and higher bank funding Unconfirmed A six-month application time is generally required for a costs 5.39% first-home mortgage, though a few banks are offering it conditional on buying 500,000 yuan of WMPs or certain insurance products from the bank 7 Mar 2018 NPC Property tax Zhang Dejiang, NPC head, said legislators would Property tax law is likely to be enacted by 2019 research and draft the property tax law this year. It is or 2020, but local governments are expected to Confirmed considered a “crucial” task by the Chinese Communist have free rein to determine crucial details on Party implementation 4 Mar 2018 Premier Affordable China to start construction on 5.8mn shantytown Shantytown redevelopment may slow gradually housing redevelopment units this year, according to the in 2018-2020, but the market impact may Confirmed government work report remain large owing to larger role of cash compensation for relocated households 6 Mar 2018 Hubei Affordable Hubei will provide a pathway for qualified tenants to Makes it somewhat easier to finance housing purchase commercial rental housing or affordable rental development of these kinds of housing over the Confirmed housing after living in it for five years long run and expands the property-owning class
2 Mar 2018 Yunnan Kunming Mortgage and Homeowners must hold their real estate registration This policy is in line with other local-level resale certificate for at least three years before being policies that target speculative property demand Confirmed restriction permitted to resell their property
126
Province/
Status Date ministry City Related Policy Details Impact Raised the down payment ratio for a second home to 45% from the previous 30%
1 Mar 2018 CITIC Bank Beijing Beijing CITIC Bank’s Beijing branch has reportedly suspended The halt is reportedly due to the bank’s mortgage loans above 2m yuan, according to Caixin. commercial decision, as opposed to regulator’s Confirmed window guidance
Hainan Sanya Prices capped Caps prices of newly-built home at February 2017 levels Strong measures needed to curb the impact of 28 Feb 2018 investment buyers from other provinces – Confirmed Hainan is primarily a vacation home market
27 Feb 2018 Jiangxi Jiangxi Crackdown on The province will conduct a three-month inspection Part of a wider government crack down on property campaign on property agencies property agencies since 2H16 Confiremd agencies
12 Feb 2018 Hebei Xiongan Rental housing Build a rural rental housing system, set up a big data The aim is to ensure all residents can afford system, and encourage major property agencies to rental housing, changing China’s traditional bias Confirmed enter the local property market towards purchasing property
9 Feb 2018 CBRC Developer loan Prohibits banks from offering working capital loans to Further closing of financing channels for developers developers Unbconfirmed
8 Feb 2018 NDRC Rental housing Statement of support for companies and institutions No specific policy was released, but it is that promote the development of the rental market indicative of China’s push to develop its rental Confirmed market
7 Feb 2018 Seven cities Beijing, Mortgage Banks in Tier 1 cities have raised mortgage rates due to We expect to see mortgage rates continuing to Guangzhou, lending tight lending quotas, higher financing costs, and HPR rise, as the government seeks to limit funding to Unconfirmed Shenzhen policy the property sector
6 Feb 2018 Hainan Hainan Accumulation Bans users from using accumulation fund loans to Very small impact, given that such individual fund purchase commercial property, including hotels, offices, loans are small and would only fund strata-title Confirmed and shopping malls. units not entire projects
127
Province/
Status Date ministry City Related Policy Details Impact 5 Feb 2018 State Council Rural land ‘No.1 central document’ said government would Expect cautious moves towards making more ‘moderately relax’ controls on rights for rural rural land available for property construction, Confirmed homestead land and houses left vacant by rural migrant especially rental homes workers (eg 15% of 730,000 rural homes in Wuhan city were left vacant year-round in 2016) 1 Feb 2018 CBRC Shanghai Developer loan Tighten scrutiny for loans to developers for project Modest impact on secondary market for projects acquisition to ensure they aren’t used for land purchase Unconfirmed Project must be 25% completed
31 Jan 2018 Guangdong Guangzhou Mortgage Big four state-owned banks reportedly raised mortgage Rising mortgage rates expected to ensure that lending rates for first time buyers in Guangzhou to 10% above home sales remain slow in Guangzhou Confirmed benchmark mortgage rate. Rates for second home (Residential GFA sold fell 16% in 2017 to 13.6mn buyers raised to 20% above benchmark m2) 31 Jan 2018 Beijing Rental housing Beijing’s government will reportedly cooperate with Without government guarantees, it will be hard banks to create financial products that support rental to design financial products based on rental Confirmed housing projects, according to Zhou Jingsong, deputy housing that appeal to the market head of the Beijing Housing Management Bureau.
30 Jan 2018 Zhejiang Land A firm’s performance will be evaluated based on its use In line with MLR’s policy to control the total of government land, with the aim of improving land- supply of land and focus more on improving land Confirmed usage efficiencies. usage efficiency
30 Jan 2018 Shanghai Shanghai Overall Pledge to continue property control policies and prevent Reinforces ongoing property control policy in tightening a financial risk 2018 Confirmed
29 Jan 2018 MLR Land rights Pilot scheme for rural collective property rights system Of the rural pilot programmes, the rural land Confirmed to be expanded to 50 cities, then trialed in an province, backed-lending programme is one that is likely before rolled out nationwide to see a breakthrough 26 Jan 2018 Hainan Land supply Plan to reduce total commercial residential land supply The scale of property development in the this year province is likely to slowdown with a lag, Confirmed perhaps starting next year
24 Jan 2018 Beijing Overall Pledge to continue property control policies and stop Mainly focuses on consumer loan fund flows in tightening prohibited funding entering the industry. the property sector Confirmed
128
Province/
Status Date ministry City Related Policy Details Impact 21 Jan 2018 Some banks Developer Banks are becoming more selective in determining Reinforces ongoing industry consolidation trend finance which developers can access developer loans Unconfirmed
21 Jan 2018 Shanghai Rental housing Set up rental housing brand, Cheng Fang, under the Given low market yields, SOE development of state-owned Shanghai Land Group rental housing seems the most viable way for rapid construction. Shanghai Land Group set up rental housing development alliance with more than 20 companies Expected impact on ordinary housing market is Confirmed including CCB, CITIC Securities and Alicloud not significant in next five years, given strong demand for any kind of affordable housing and The firm aims to invest 17bn yuan to build 20,000 rental tight supply of ordinary housing units on 17 parcels of land by 2020; of this 4,000 units will be completed in 1H18 21 Jan 2018 Jiangsu Nanjing Rental housing Pledged to supply 1mn sq.m in rental housing in 2018 Rapid growth of rental housing not expected to have a major impact on Nanjing’s ordinary Land for rental housing development to account for 30% housing market this year Confirmed of total housing land soppy in 2018
ICBC Nanjing agreed to provide 500bn yuan credit line for rental housing development 18 Jan 2018 Hubei Wuhan Rental housing Wuhan is encouraging companies to rent empty Wuhan’s move is in line with central government apartments from individual homeowners, then renovate aims to ease property market pressures via Confirmed and lease them to long-term tenants rental housing development
18 Jan 2018 CBRC Lending policy Will continue the property control policy to curb Expect more regulatory measures to close up bubbles forming in the real estate market loopholes and squeeze funding to smaller Confirmed developers
17 Jan 2018 MOHURD Overall policy Will continue to implement property tightening policies Property policy is likely to remain negative in order to curb speculative activities overall, with restrictions on developer funding channels in place, and purchase restrictions Unconfirmed remaining in key cities. Policy support will, however, be provided for first-time buyers and rental market development. 16 Jan 2018 MLR Land policy Studying ways to make collective land available for Land supply should eventually increase, but this homebuilding, especially rental housing, including by is a tricky area that will take several years to see Confirmed companies other than property developers material progress
129
Province/
Status Date ministry City Related Policy Details Impact 11 Jan 2018 Shanghai Stock Bond issuance The Shanghai Stock Exchange (SSE) will accelerate Supports funding for large developers, while Exchange developers’ bond approvals, according to Caijing News. small developers are squeezed by the shadow Unconfirmed However, there are no reports of the SSE loosening banking crackdown (eg recent entrustment loan bond issuance standards. rules)
10 Jan 2018 Hainan Land bureau Land Tightened up land use and development policy, Tougher environmental policy will slow down development following severe criticism by central government the process and raise the costs of land Unconfirmed inspectors on overdevelopment and ecological damage. reclamation property development projects This includes a reported suspension of development of Haihua Island, where Evergrande plans a tourism project 10 Jan 2018 Tianjin Hukou and HPR Eased hukou application for rental housing tenants and Microeasing policy amid competition for talent qualified rural residents among tier 2 cities Confirmed
10 Jan 2018 Shandong Qingdao Eased hukou application for rental housing tenants and Microeasing policy amid competition for talent qualified rural residents among tier 2 cities
10 Jan 2018 Fujian Xiamen Pledged to support first-home buyers and upgraders’ Expect some modest targeted support policies housing purchases, without providing specifics not an aggressive loosening
9 Jan 2018 Nanjing Jiangsu Talent A person considered as grade A talent may apply for up Most aggressive talent-attraction policy that we attraction to 3mn yuan in cash subsidy for a home purchase have seen so far, with potential to shore up local property market sentiment Confirmed Various talent grades may also access local rental housing and mixed-ownership property schemes
8 Jan 2018 Gansu Lanzhou HPR Loosened HPR in some districts, while tightened resale Response to high home inventories; other cities restrictions citywide – buyers must hold onto a property may follow suit if local market conditions Confirmed for at least 3 years, up from 2 years previously warrant similar action
4 Jan 2018 Sichuan Chengdu Rental housing Allowing residents to use their rental property as proof Aim is to remove one barrier to rental market of residence in registering their children to schools growth Confirmed
130
Province/
Status Date ministry City Related Policy Details Impact 3 Jan 2018 Fujian Xiamen HPR Pledged to continue implementing home purchase Indicates no change in local policy settings restrictions in 2018 Confirmed
2 Jan 2018 Central Rural Rural land Rural land reform pilot will expand to cover 300 Large agribusinesses to benefit as they will be Economic Work counties, up from the current 129 able to lease more land (though issues remain Confirmed Conference regarding the length of the lease right and subsequent private sector take-up) 27 Dec 2017 NDRC, MOF and Accumulation Require developers to accept home purchases funded Hard to enforce MOHURD fund by accumulation fund loans, despite the long processing Confirmed time in some cases
21 Dec 2017 Central Rental housing Echoed the end-year Politburo statement in calling for Big push on rental housing development is not Economic Work speeding up housing system reform and building the expected to be disruptive for the ordinary Conference property long-term mechanism without mentioning a housing market next year. property tax. Confirmed Property tax law likely by 2019 or 2020, but local Confirmed that property policy would be differentiated governments expected to have free rein to according to local market conditions and that property determine crucial details on implementation. policy powers would be divided between central and local governments. 20 Dec 2017 Ministry of Land Rural land The MLR issued a statement to help collective entities in The plans are both moves to help with rural and Resource reform impoverished rural areas make better use of idle poverty alleviation. homesteads and land, by allowing flexibility for owners We believe that these reforms will continue to Confirmed to rent out their land as well as allowing collectives to face headwinds from strong vested interests, become shareholders in agribusinesses. and do not expect to see large deviations from the current slow progress of rural land reform in the near term 20 Dec 2017 Hunan Changsha Capped prices Changsha city issued regulation to cap developer’s profit Private developers aren’t usually interested in margins at 6-8% for price-capped housing projects. affordable housing development and this may Confirmed reinforce that.
15 Dec 2017 Shanghai Shanghai Rental housing Shanghai government have release plan to auction The scheme has already been implemented four three plots of land to be used solely for rental housing, times in Shanghai this year, the first of which Confirmed came in July 2017, and prohibits a total of 21 plots of land so far from being sold for 70 years.
131
Province/
Status Date ministry City Related Policy Details Impact 14 Dec 2017 Sichuan Chengdu Rural land Chengdu is piloting a program under which farmers can We believe that rural land reform still faces reform voluntarily waive their housing land use right in return strong opposition from vested interests. As a Confirmed for financial compensation result, we do not expect to see large deviations from the current slow progress of rural land reform in the near term. 13 Dec 2017 Beijing Beijing Beijing, Tianjin The municipal government of Beijing will begin moving Despite this slowdown of increased in migrant and Hebei to the suburban district of Tongzhou next week, with workers, Beijing has remained congested, which integration Unconfirmed about 400,000 set to move. has driven the local government’s decision for plan the current move away from the downtown district 12 Dec 2017 Beijing Rental housing Local officials warned that developers selling rental-only This shows that even SOEs are reluctant to housing will be banned from land bids and lose their develop and hold onto rental housing because of licences. yield and cashflow issues. Confirmed Followed a TV expose of a property subsidiary of China Railway Construction asked rental housing applicants to pay 10 years of rental fees and 20 years’ worth of deposits upfront. 8 Dec 2017 Politburo National General Called for speeding up the implementation of the long- We expect a property tax on paper by 2020, but term mechanism for property and pushing forward with limited implementation, as well as a ramp Confirmed comprehensive reform. up of rental housing building
6 Dec 2017 NDRC Specialised 16-point guideline that calls for the market to play a Could lead to a slowdown in urban construction towns larger role in the development of characteristic towns, activity in small towns thereby reducing the need for debt-based investment Confirmed from local governments. It also narrowed the definition of a specialised town, as based on a distinctive, strong industry rather than other features such as tourist attractions and tourist attractions 30 Nov 2017 Ministry of Land Land reform 28 provinces have issued certificates allowing farmers to Farmland reforms are totally separate from rural and Resources lease out their farmland. The certificates cover 1.52bn construction land reform. The latter can be more Confirmed mu of land, accounting for 82% of rural farmland easily converted into urban construction land for real estate development, whereas farmland is highly protected. 29 Nov 2017 ICBC Beijing Beijing Rental housing ICBC Beijing to offer 600bn yuan lending facility for Explicit credit support for developers to rental housing over the next five years, and extend 25- construct rental projects, though no details on Confirmed year loans to developers for rental housing projects the lending rates. We think this will be a prevailing trend
132
Province/
Status Date ministry City Related Policy Details Impact 29 Nov 2017 MOHURD, National Property policy China may change property policy focus from reducing We do not anticipate significant demand-side PBOC, MLR strategy property inventory to improving housing supply, policy loosening, but rather an incremental shift Unconfirmed including rental housing towards encouraging more housing supply to alleviate price pressure, and building a long- term mechanism. 28 Nov 2017 Guangdong Accumulation Will set up a monitoring system for its housing The reason behind this policy is to provide fiscal fund accumulation loan fund safeguards should there be sustained increase in Unconfirmed demand to tap its accumulation loan fund.
24 Nov 2017 Tianjin Accumulation Cracking down on account holders making illegal Relatively minor tightening measure, aiming to fund withdrawals from their housing loan accumulation fund dampen funding flows for second and third Confirmed homes.
23 Nov 2017 Anhui Hefei Rental housing Hefei city’s government announced a plan to supply a Moves such as these will be part of a key multi- total of 160,000 units of rental housing by 2020 and year development as the government is trying to Confirmed pledged to set up a unified rental housing platform entice more people to rent.
23 Nov 2017 Shanghai Shanghai Rental housing Shanghai recently released a draft mapping out plans The scheme has already been implemented for six plots of land to be used solely for rental housing three times in Shanghai this year, the first of which came in July 2017, and prohibits a total of Confirmed 12 plots of land so far from being sold for 70 years.
22 Nov 2017 MOHURD, PBOC Overall policy Pledge to continue current property policies and keep We expect the next step for regulators would be and MLR the property sector stable, while pushing the to crack down further on illegal funding Confirmed development of China’s rental housing market. channels for the property market
21 Nov 2017 Leading Group Leading Rural home President Xi making specific mention of a cautious We believe that rural land reform still faces for Deepening Group for site lands sales implementation of rural land reform to ensure state strong opposition from vested interests. As a Overall Reform’s Deepening Confirmed ownership of rural land. result, we do not expect to see large deviations Overall from the current slow progress of rural land Reform’s reform in the near term 20 Nov 2017 Chongqing Chongqing Rental housing Chongqing housing management bureau has signed More local level support for developing the financing cooperation agreements with China Construction Bank rental housing market Confirmed and will offer 100m yuan rental housing loans to individuals and corporations.
133
Province/
Status Date ministry City Related Policy Details Impact 17 Nov 2017 MOHURD Housing price Requires that inspections in specified cities must be Implies that some local officials have been Inspections carried out by officials from other provinces (Beijing, turning a blind eye to de facto breaches of Confirmed Nanjing, Suzhou, Hangzhou, Jiaxing, Hefei, Jinan, housing price caps; stronger enforcement Qingdao, Zhengzhou, Changsha, Guangzhou, Foshan, Haikou, Sanya and Xian) 17 Nov 2017 Beijing and Beijing and Rental housing Beijing will supply 1000 hectares of collective land used Beijing’s policy merely offers further details of a Shanghai Shanghai for public rental housing development, with tenancy pilot it is currently undertaking, and the impact capped at ten years. is limited to subsidies housing, so impact should Confirmed be small. Shanghai has signed an agreement with 14 local rental agencies in creating a ‘one-stop service’ for employees Shanghai is more significant as it offers financial to withdraw their accumulation fund to pay rent. incentives for residential rental housing. 16 Nov 2017 Zhejiang Zhejiang Rental housing Zhejiang province issued a circular promoting rental These policy announcements come as China housing projects, pledging to ensure that rental housing looks to develop its rental housing market, supply would account for 20% of total housing supply in which is being pushed as a long-term means to Confirmed cities, and 10% in counties, over the next five years. combat speculation-driven house price volatility, Wenzhou, Shaoxing, Jiashan, and Yiwu cities have been ease the demand-supply mismatch in higher tier selected to pilot this plan. Chinese cities, and promote urbanisation.
16 Nov 2017 Sichuan Chengdu Rental housing Chengdu published its five-year housing development Tier city -level support policy for more rental plan, pledging to supply 1.51m units of rental housing housing Confirmed by 2021.
15 Nov 2017 Guangdong Shenzhen Accumulation Allowing employees to make withdrawals from their The circular is part of a nationwide policy move fund housing loan accumulation fund. The original limit was to promote rental housing, which is being 50%, this has been extended to 65% of their total pushed as a means to combat speculation- Confirmed driven house price volatility, ease the demand- supply mismatch in higher tier Chinese cities, and promote urbanisation. 15 Nov 2017 NDRC NDRC Overseas bond China may loosen the overseas bond issuance threshold We do not see this as having a significant impact issuance for property developers, according to Bloomberg News. on residential construction, and is therefore not Confirmed indicative of a reversal in policy direction
14 Nov 2017 Fujian Quanzhou Price cap Will not grant presale licenses for newly built We believe the measures to be a short-term cap commercial residential housing that have a selling price on headline prices, as the local government Confirmed exceeding 1.3x the Quanzhou average home price in wishes to control strong price growth in order to October 2016 hand in a better report card to Beijing for its annual review
134
Province/
Status Date ministry City Related Policy Details Impact 13 Nov 2017 Ministry of land Ministry of Land The Ministry of Land and Resources (MLR) has The investigation into land hoarding for 70 cities and Resources land and conducted a nationwide investigation into 70 cities as will probably include lower-tier cities, showing Confirmed Resources the latest step up in efforts to combat land hoarding. that tightening measures are spreading nationwide. 10 Nov 2017 Henan 5 Provincial Land/hukou Henan province will reward provincial cities with more Innovative effort to speed up urbanization that departments construction land quota if they offer more hukou to could be trend-setting Confirmed migrant workers, thereby integrating them into the urban welfare system 8 Nov 2017 MOF MOF Property tax Finance Minister Xiao Jie said that China is planning to The Property Tax is likely to require several years charge property tax based on appraised value of to pass the legislative process and become law. Confirmed industrial, commercial and residential properties Even then, effective implementation could take years more.
7 Nov 2017 Jilin Home price Month-long inspection into whether properties are Artificial price control that doesn’t address being sold at higher prices than the approved presale underlying causes of price pressure Confirmed prices
6 Nov 2017 Guangdong Shenzhen Rental housing China Construction Bank to provide low-interest loans to Small increase in rental housing supply 11 real estate companies to launch 5,481 rental housing Confirmed units in Shenzhen
6 Nov 2017 Shaanxi Xian Home price Month-long inspection into whether properties are Artificial price control that doesn’t address being sold at higher prices than the approved presale underlying causes of price pressure Confirmed prices
3 Nov 2017 Beijing Land sale Beijing saw its first failed land auction for two years Developers are running out of firepower and will when a 3.6ha mixed-use site on the outskirts of the city be more selective in land purchase in Pinggu district did not attract any bids; other parcels Confirmed closer to the centre in Haidian and Chaoyang districts have sold recently but at low premiums to the starting price partly as they were for joint-ownership affordable home construction 3 Nov 2017 10+ cities 10+ cities Rental housing Over ten unspecified cities may unify their respective We think that users (rental housing applicants) rental housing platforms before end-2018 will be able to use the existing platforms of popular property agencies, with the property Confirmed agencies themselves allowing supervisory access by uploading information onto the centralised platform.
135
Province/
Status Date ministry City Related Policy Details Impact 2 Nov 2017 PBOC MOHURD PBOC Anti-money Aim to root out money laundering proceeds in the real Money laundering is partly due to a lack of a and CBRC MOHURD laundering estate industry nationwide information sharing system on Confirmed and CBRC money laundering. The move may help push China to complete this system 1 Nov 2017 Beijing Beijing Rental housing Beijing municipal government launched a rental This is part of China’s wider plan to encourage property platform yesterday, requiring existing residents to take up rental housing and provide Confirmed platforms from property agencies to be monitored by stable market development for rental housing. Beijing. 31 Oct 2017 Shanxi Taiyuan Rental housing Guidelines to encourage local real estate companies to A further example of a local level government pivot from selling housing to providing rental properties implementing measures designed to develop Confirmed the rental housing market.
30 Oct 2017 Zhejiang Hangzhou Rental housing Selling a land site that may only be used for rental More large cities expected to follow suit, in line housing development with emerging national policy to promote rental Confirmed housing
30 Oct 2017 Hainan Land Hainan will suspend secondary market trading of land Follows restriction on land supply for the primary market, as local government seeks to Confirmed contain potential land price surge that would send a signal to property investors 30 Oct 2017 PBOC,CBRC and Consumption Banks to cut off credit lines to providers of loans used Reduce risk and main impact on a subset of MOHURD loan for down payments on property, including real estate investor buyers rather than end-users Unconfirmed developers, agencies, internet financing platforms, micro credit companies 26 Oct 2017 MOHURD and House price Month-long joint investigation into house price growth, Tackles symptom, not the cause of upward price NDRC growth in particular market attempts to circumvent restrictions pressure and thus only a short-term remedy Confirmed on price increases
25 Oct 2017 Shanghai Stock Poly REITs Poly allowed to sell 5bn yuan of REITs backed by rental More developers likely to get approval to sell Exchange flats REITs, but the prospect of tax-efficient REIT Confirmed investment policies is still uncertain
24 Oct 2017 Shandong Shandong Rental housing Eligibility for school attendance determined by place of Modest encouragement for rental market residence, even if rented development Confirmed Plan to allow residents to draw the housing accumulation fund to pay rent
136
Province/
Status Date ministry City Related Policy Details Impact 20 Oct 2017 Zhejiang Kunshan HPR Kunshan issued a new regulation scrapping home Not change in housing policy, but rather a talent- purchase restrictions (HPR) for home buyers that hold attraction measure Confimred bachelor’s degrees or higher
17 Oct 2017 Guandong Shenzhen Rental housing Guangzhou and Shenzhen local governments have This is in line with recent developments from the and released plans to auction plots of land to be allocated Ministry of Housing and Urban-Rural Guangzhou Confirmed solely for rental housing Development, which are aimed at accelerating the development of the rental housing market.
16 Oct 2017 MOHURD MOHURD Rental housing Ministry of Housing and Urban-rural Development The central government views this as a long- (MOHURD) and the law office of State Council are term solution that could ease demand and Unconfirmed working together to accelerate work on a national supply pressures on the property market rental housing draft regulation 13 Oct 2017 Zhejiang, Shaoxing, Resale Homeowners most hold the real estate registration In line with other local level policies on targeting Yunnan and Kunming and restrictions certificate for two years as a prerequisite to resell their speculative property demand Confirmed Shanxi Taiyuan property
12 Oct 2017 Fujian Personal Fujian province issued a statement cracking down on These rules follow similar developments in consumption the illegal use of personal consumption loans for Beijing, Nanjing, and Shenzhen, with the Confirmed loans mortgage down payments intention of preventing consumer loans from being used to purchase homes. 11 Oct 2017 Shanghai Land The Shanghai planning and land resources bureau Shanghai’s second round of selling rental invited bids for five parcels of land to be used solely for housing only-land. The first round saw land sites Confirmed rental housing sold at lower prices than comparables and local SOEs as the main buyers. 9 Oct 2017 Hainan Sanya HPR and sale Non-residents must provide two years’ of tax receipts to Major impact given the high share of vacation restrictions purchase a property and must hold it for five years homes bought by non-residents, which make up Confirmed before being allowed to sell it on a large part of the market given Sanya’s attraction as a tourist destination. 1 Oct 2017 Guangdong Guangzhou Rental housing The new regulation issued by the Guangzhou Local governments are toeing the line in government seeks to regulate rental housing, requiring cooperating with the central government’s aim Confirmed the area of such housing to be larger than 5m per sqm of promoting affordable housing and rental per person living there housing supply 1 Oct 2017 Tianjin Tianjin Mortgage The majority of banks in Tianjin have adjusted mortgage Slower sales volume expected, but prices rates by 5 or 10 percent above the benchmark rate. cushioned by limited supply unconfirmed Bank of Tianjin and China Merchants Bank are the only two banks to hold rates at the benchmark,
137
Province/
Status Date ministry City Related Policy Details Impact 30 Sep 2017 Zhejiang Ningbo Restrictions on Ningbo has banned the re-sale of properties purchased In line with other city policies on targeting property sales within the last two to five years speculative property demand Confirmed
30 Sep 2017 Hainan Hainan Construction Hainan province issued a new regulation banning the Hainan, as a very popular tourist destination, is a construction of new residential housing projects with special case in that localized demand restrictions Confirmed units smaller than 100m2 have little effect.
28 Sep 2017 Guangxi Guilin restrictions on Guilin city in Guangxi province has banned the reselling The new round of policies shows the property and of home buyers’ third or more homes for two years, for government’s determination in continuing Confirmed sales those with three properties or more
27 Sep 2017 Jiangxi Jiangxi consumption Jiangxi issued a circular on the beginning of an These rules follow similar developments in loans investigation on the illegal use of consumption loans in Beijing, Nanjing, and Shenzhen, with the Confirmed mortgage down payments, with personal consumption intention of preventing consumer loans from loans of 100,000 yuan or more being targeted being used to purchase homes.
26 Sep 2017 MOHURD MOHURD Rental housing MOHURD, in cooperation with other regulators, will The government sees rental housing as a means accelerate work on a draft for rental housing regulation, to achieve its aim to create a long-term Confirmed according to Yang Jiayan, deputy director of MOHURD’s mechanism that would ease upward demand real estate market supervision department. and supply pressures on the property market.
25 Sep 2017 Hebei, Hunan, Shijiazhuang, restrictions on Shijiazhuang (5 yrs), Changsha (3 yrs), Chongqing (2 The new round of policies shows the Chongqing, Changsha, property yrs), Nanchang (2 yrs), Nanning (2 yrs), and Guiyang (3 government’s determination in continuing Jiangxi, Chongqing, purchases and yrs) have banned the re-sale of properties purchased property market tightening as China Guangxi, Nanchang, sales within the last two to five years. Xi’an and Wuhan have approaches its peak sales season. We expect Confirmed Guizhou, Nanning, and issued regulations restricting pre-sales by developers more smaller cities to follow suit. Shanxi, Hubei Guiyang Xi’an and Wuhan 21 Sep 2017 Beijing Beijing Shared-home Under the new guidelines, Beijing plans to supply Assuming no additional land supply for MOHURD ownership 50,000 share-ownership units in 2017 and 250,000 units residential development, these units would Confirmed in total in the next five years displace the supply of ordinary housing. It could even strengthen upward price pressure on ordinary housing.
138
Province/
Status Date ministry City Related Policy Details Impact 21 Sep 2017 Guangdong Guangzhou Consumption PBOC’s Guangzhou branch has prohibited commercial These rules follow similar developments in loan banks from issuing consumer loans of more than 1m Beijing, Nanjing, and Shenzhen, with the Confirmed yuan or with terms longer than 10 years intention of preventing consumer loans from being used to purchase homes.
20 Sep 2017 Beijing Beijing Mortgage Several banks in Beijing raised mortgage rates for first- China’s deleveraging drive is impacting the real lending time home buyers on 14 September. This move has economy, as banks continue to pass on their Confirmed received support from the PBOC, according to the higher borrowing costs to consumers central bank’s Beijing branch.
18 Sep 2017 Beijing Beijing Suspended All major public construction projects in Beijing will be The bans on construction may cause a shortage constriction suspended in winter-2017 to improve the city’s air of housing supply in 2018, which would provide Confirmed quality upward price pressures.
15 Sep 2017 Beijing Beijing Consumption Types of debt to be scrutinized to make sure funds were Money being fungible, expect a continued cat- loan not used for home purchase: and-mouse game between investors and - personal consumption loans of 200,000 yuan or more regulators Confirmed - self-owned business property mortgages of 1m yuan or more - credit card debt of 200,000 yuan or more 14 Sep 2017 Shannxi Xi’an HPR Intensified HPR Moderate further tightening step aimed at - bans residents from buying a third home investment buyers Confirmed - bans non-residents from buying a second home
13 Sep 2017 Hunan Changsha Capped prices Changsha has broken ground its first batch of 11,682 Aims to stabilise home prices by increasing the units capped price housing units, of which 2,702 units are amount of low-cost housing, while making Confirmed expected to be put onto the market this year. homes more affordable for residents
12 Sep 2017 MLR MLR Rural land The central government has approved the MLR’s plan to Land reforms are politically very difficult with reform extend rural land reform pilots by a year (until end- multiple competing interests. Expect progress to Confirmed 2018) remain slow.
12 Sep 2017 Jiangsu Nanjing Mortgage Ban the illegal use of personal consumption loans for Enforcement of existing rules intended to down mortgage down payments in home purchases manage risks by controlling leverage in home Confirmed payments purchase
139
Province/
Status Date ministry City Related Policy Details Impact 6 Sep 2017 Beijing Beijing Mortgage CBRC’s and PBOC’s Beijing branches are investigating Enforcement of existing rules intended to down the illegal usage of consumption loans as mortgage manage risks by controlling leverage in home Confirmed payments down payments in home purchases purchase
5 Sep 2017 Hubei Hubei Real estate Local SASAC told SOEs to suspend new investment in Reduce pressure on land prices, manage SOE investment real estate exposure to slowing property market Confirmed
30 August Gansu Lanzhou HPR and pre- Lanzhou issued a circular to strengthen its pre-sale Short-term measure to manage officially 2017 sale system system by implementing a “one unit one price” policy. reported transaction prices Confirmed Lanzhou has also included Xigu district in its home purchase restriction policy. 29 August Jiangsu Zhangjiagang Resale Homeowners must hold a real estate registration Might put off short-term investors but little 2017 restriction certificate for two years as a prerequisite to selling their effect on end-user buyers Confirmed property.
29 August 13 pilot cities Beijing, Rental housing Allow development of rental housing on collectively Could free up a lot of rural land for financially 2017 Shanghai, / land reform owned rural and urban land viable low cost rental housing development. Nanjing, Hangzhou, One question is local government enthusiasm Hefei, for spending on transport infrastructure and Xiamen, Confirmed other amenities to make these new Zhengzhou, communities attractive places to live. Wuhan, Guangzhou, Foshan, Another issue is cultural desire for Zhaoqing, homeownership, as a precondition for marriage. Chengdu 29 August Hubei Wuhan hukou Plan to remove hukou restrictions for university The aim is to encourage an influx of talent, with 2017 graduates in 2017, offer graduates housing units at a the view to increase long-term demand. Confirmed 20% discount to market prices and implement a new minimum annual salary. 25 August Jiangsu Suzhou Mortgage Some Suzhou banks has increased mortgage lending Financial sector deleveraging is expected to 2017 lending rates for first-time home buyers to 10bps above the affect mortgage pricing and availability in the Confirmed benchmark. coming months.
140
Province/
Status Date ministry City Related Policy Details Impact 22 August MOHURD MOHURD Shantytown New starts on 4.7mn shantytown redevelopment units Given that the number of units is unchanged 2017 redevelopment in January-July, or 78% of 6mn target for 2017. yoy, we believe the increase in investment is Investment in shantytown redevelopment units rose explained by the shift towards cash Confirmed 42% yoy reached 1.17trn yuan in January-July. compensation for relocated shantytown residents. This has been a driver of ordinary home demand.
21 August Hunan Changsha HPR Trial regulations that waive HPR for people who hold a This policy loosening is not a removal of HPR, as 2017 diploma degree or above. it only exempts those with higher education. The Confirmed aim is to encourage an influx of talent, with the Home purchase subsidy of 30,000-60,000 yuan per unit view of increasing long-term demand. is available for those with a master’s degree or above.
18 August Beijing Rental housing The Beijing municipal government has issued draft The notice seeks to support the housing rental 2017 measures on rental policy for public consultation. market, in accordance with the State Council’s Confirmed aim of having a stable home-rental market system by 2020.
18 August Hainan Land The province will continue policy issued on June 26: Hainan, as a very popular tourist destination, is a 2017 - suspend new land supply to developers in cities special case in that localized demand restrictions Confirmed with high inventory levels have little effect. suspend the approval of new hotel or commercial real estate projects 15 August Beijing Shared- Beijing city will allow purchasers of shared-ownership Beijing MOHURD is trying to encourage lower- 2017 ownership properties (part-state, part-privately owned) to apply for cost home purchases in the city. Confirmed properties a local hukou
14 August Shanghai Commercial Shanghai is planning to draft rules allowing developers Commercial buildings repurposed as residential 2017 Properties to convert commercial buildings into rental apartments properties serve a purpose in stabilising property prices through increasing supply in Tier Unconfirmed 1 cities. Local governments therefore have to strike a balance between curbing price growth and cracking down on illegal home sales. 10 August Beijing Price control Granted pre-sale approvals for three residential housing Likely a gentle recalibration of policy settings 2017 projects with average prices above what had been rather than harbinger of significant loosening Confirmed viewed as the local government’s price ceiling of 80,000 yuan/m2
141
Province/
Status Date ministry City Related Policy Details Impact 8 August 2017 Ningxia Shizhuishan Talent Cash subsidy for new graduates wishing to buy a local Unlikely to dramatically change Shizhuishan’s incentives home. The subsidy level ranges from 30,000 yuan to appeal for talent. Only a marginal impact on Confirmed 250,000 yuan per unit, depending on the buyer’s home demand education level. The total subsidy funding is set at 50mn yuan.
4 August 2017 Liaoning Shenyang Resale Residents owning two properties or more must hold the Aims to reduce investment purchases and may related real estate registration certificate for five years also reduce supply of existing housing for sale. Confirmed before selling on any of their properties
4 August 2017 Beijing Beijing Shared The Beijing municipal government has issued a Increased supply of such low-priced affordable ownership regulation for shared ownership (state/individual) housing would stabilize the overall market Confirmed properties transaction price, but is unlikely to resolve supply issues for ordinary housing.
3 August 2017 Wind Wind Bond issuance - Property firms raised 25.6bn yuan through Authorities have strengthened control over overseas bond and note issuance in the first various sources of funding for developers. Some Confirmed seven months of 2017, a 209% yoy increase developers have therefore turned to the overseas market to seek financing
2 August 2017 Guangdong Guangzhou Prices Multiple bureaus including local PBOC and CBRC enforce Likely to choke new housing launches as price control measures on pre sales (transaction price is developers wait for a more liberal environment Confirmed not to exceed approved price in the presale documents) for pricing policy
1 August 2017 Hubei Wuhan Rental market Tenants to enjoy the same rights as home owners in Rental prices in good school districts to surge terms of educational access, tax rebates, and financial Confirmed support
1 August 2017 Jiangsu Wuxi Rental market Registered tenants will be eligible for local household Rental prices in good school districts to surge Guangdong Guangzhou registration (hukou), enabling local school enrolment Confirmed Henan Zhengzhou and access to public services
31 July 2017 CBRC Lending policy Strictly enforce existing restrictions on bank loans to Big developers gain market share at the expense property developers and local governments of funding-strapped small developers Confirmed
142
Province/
Date ministry City Related Policy Status Impact Details 24 July 2017 Politburo General China to continue property control policies; concerns No change in direction for property market property policy remain over house prices; discuss long-term mechanism policy Confirmed
21 July 2017 Shanghai Property buyer Guideline on plans for lottery-like registration system for This doesn’t tackle the underlying issue of lottery homebuyers, which involves developers notarizing and undersupply coupled with price controls Confirmed publishing the list of eligible homebuyers and properties
20 July 2017 Nine Ministries Nine Rental market Promote development of rental homes in cities with Helps make rental property development a more Ministries growing populations, by providing more land for rental attractive business opportunity as China’s Confirmed property development and enhancing financial support property markets mature
17 July 2017 Jiangxi Ganzhou HPR and Expanded HPR to include more districts Expanded targeted tightening on a Tier 3 city Mortgage outside historically heated urban mega-clusters Confirmed No one may buy a third home in the city’s downtown area
14 July 2017 Shanghai and Mortgage Mortgage lending declined in Beijing and Shanghai in H1 Financial sector deleveraging is expected to Beijing affect mortgage pricing and availability in the Confirmed coming months.
13 July 2017 Jiangxi Jiujiang HPR Non-residents need to provide one year of tax receipts Jiujiang is the third city in Jiangxi province to to purchase a first home in the downtown area implement HPR policy Confirmed Local hukou residents limited to owing two properties
13 July 2017 Beijing Prices capped The Beijing municipal government has pledged to keep Developers will likely respond to the price cap by home prices flat mom in 2017 holding back property launches in anticipation Confirmed of looser controls in six months or next year
12 July 2017 Shanghai Stock Shanghai Bond issuance The Shanghai Stock Exchange (“SSE”) rejected a 10bn We expect a continued tight approach to Exchange Stock yuan corporate bond issuance by Sunac China Holdings developer financing Confirmed Exchange
8 July 2017 Shanghai Five Year Shanghai plans for 1.7mn new housing units to enter The big increase is in residential leasing units to Housing Plan the local market, up 60% on the previous 5-year period 700,000 in 2016-20 compared with 200,000 Confirmed public rental units in 2011-15. - 450,000 commodity houses for sale at market prices
143
Province/
Status Date ministry City Related Policy Details Impact - 550,000 affordable homes for sale The planned volume of new commodity - 700,000 units for residential leasing residential units, at 450,000, is less than half the 918,000 commodity residential units sold in 50mn m2 of old residential black to undergo repair and 2011-15. This suggests continued high prices for renovation in the next 5 years commodity residential property in Shanghai.
6 July 2017 Shanghai Shanghai Land bids Shanghai land bureau invited bids for two parcels of This model of land contract is unlikely to get land with two key conditions attached: many bidders given the strict terms. It is unlikely to see widespread adoption given that it would - The winning bidder must hold onto the land and damage local government finances, overturn property built on it for the entirety of the 70-year land- Confirmed China’s urban development financing model and use right collide with cultural preferences on home ownership. It appears to be designed with -The developer can only build units for rent not sale on specific buyers in mind (to get around the rule the land site on fair and open bidding).
5 July 2017 Hunan Changsha Price caps Changsha has capped prices at October 2016 levels. This is aims further tighten the presale system for new projects and stable home prices. Confirmed A fully decorated unit may not be priced more than 15% higher than that of a bare-shell unit
3 July 2017 Sichuan Chengdu Hukou Non-locals with university education working in This policy to encourage a talent influx should Chengdu are eligible to apply for a Chengdu local hukou create a modest, long-term increase in housing Confirmed demand
29 June 2017 Shaanxi Xian Restrictions on Property owner must have held the real estate Might put off short-term investors but little resale registration certificate for five years before being effect on end-user buyers Confirmed allowed to resell a property
27 June 2017 Beijing Beijing Land supply Beijing government supply of residential land in H1 Land supply is up but a very low base – not reached 2.9mn m2 buildable area, more than total expected to resolve fundamental undersupply supply in 2016 situation, particularly after earlier restrictions on flats built on commercial-use land Confirmed Moreover, new land supply is entirely for affordable housing indicating no relief for supply shortage in market-priced housing market
144
Province/
Status Date ministry City Related Policy Details Impact 23 June 2017 Jiangsu Nanjing Mortgage Four local banks in Nanjing have suspended their Tighter mortgage conditions expected to filter mortgage business down to lower-tier cities following financial Unconfirmed A state-owned bank raised their mortgage lending rate sector tightening and cool buyer sentiment on existing homes
16 June 2017 Shanghai Shanghai Mortgage Shanghai new mortgages were 15.5bn yuan in May, New mortgages declined in Shanghai in line 3.1bn yuan less than April following local mortgage policy tightening Confirmed
15 June 2017 Jiangxi Nanchang Mortgage Nanchang stated it has not suspended mortgage Tighter mortgage conditions expected to filter CBRC lending but confirmed that some banks did increase down to lower-tier cities following financial Confirmed mortgage rates for individual buyers, according to the sector tightening and cool buyer sentiment CBRC Nanchang Branch
13 June 2017 Hubei, Wuhan Decoration Several local governments said to have reached a Decoration contracts are in a legal grey area and Guangdong Foshan contracts compromise with developers regarding decoration provide a channel for effective price increases Jiangsu Nanjing Unconfirmed contracts, allowing developers to bypass price limits by given controls on formal transaction prices amid hiking up decoration fees. supply shortages
12 June 2017 Commercial Mortgage 20 banks out of 533 banks have reportedly suspended Most likely these are small city or rural banks mortgages commercial banks that are running low on Unconfirmed lending capacity following interbank liquidity tightening in the run-up to end-June
7 June 2017 Zhejiang Hangzhou Mortgage Some banks in Hangzhou have raised the mortgage Further damping effect on already slowing sales lending rate to 10% higher than the benchmark for first volume, but prices still supported by limited Unconfirmed home buyers. supply
7 June 2017 Shanghai Shanghai Mortgage Certain banks in Shanghai such as China Minsheng Bank Further damping effect on already slowing sales have increased mortgage rates to 10% above the volume, but prices still supported by limited Unconfirmed benchmark rate for first home-home purchases supply as presale approvals held up by disagreements over pricing.
6 June 2017 Jiangsu Xuzhou Restricted for Residents owning two properties or more must hold a Might put off short-term investors but little sale real estate registration certificate for two years before effect on end-user buyers Confirmed selling on either property
145
Province/
Status Date ministry City Related Policy Details Impact Developers are forbidden from selling at a higher price than agreed in the presale approval document
5 June 2017 Hebei Langfang Price cap and Cap average home prices at the October 2016 level Langfang’s curbs are in response to Xiongan- HPR Beijing market fever Confirmed Non-residents must provide three years’ tax receipts to purchase their first home
1 June 2017 Guangdong Foshan HPR Expanded HPR to include existing properties (usually Integration with neighbouring Guangzhou is HPR applies to only new properties) drawing substantial investment demand, which Confirmed this policy seeks to ward off
31 May 2017 Jiangsu Huaian HPR Non-residents limited to owing one property and must Huaian is a special case given that there is large provide one year’s tax receipt to buy property scale redevelopment work in the city. Confirmed Local hukou residents limited to owing two properties.
26 May 2017 NDRC NDRC Overseas bond Some developers are planning to issue dollar dominated Aims to choke off funding for land purchases issuance bond with maturities under one year overseas market to Unconfirmed avoid NDRC regulations, according to Bloomberg news.
25 May 2017 State Council State council Shanty town China will redevelop 15m shanty town units in the next The government is likely to increase cash redevelopment three years leading up to 2020 subsidies for potential home buyers in order to Confirmed reduce unsold inventories rather than further stepping up affordable home building
25 May 2017 Guangdong Zhuhai Land sales Three plots of land put out for bidding carry the Zhuhai is the second city to implement such a contractural condition that flats built and sold on it must policy after Baoding, near Xiongan New Area. Confirmed be held for ten years before resale is permitted
24 May 2017 CBRC CBRC Developer CBRC local branches to conduct an investigation into Further squeeze on funding for smaller refinancing trust companies funding real estate developers developers, which have fewer funding options Unconfirmed than large players
23 May 2017 Gansu Lanzhou Prices capped Actual transaction price per unit may not exceed price Short-term cap on headline price without stipulated in the presale permit addressing underlying supply-demand gap Confirmed
146
Province/
Status Date ministry City Related Policy Details Impact 23 May 2017 Shenzhen Shenzhen Mortgage Some banks in Shenzhen including the Agricultural Bank We see mortgage tightening as a larger threat to of China (ABC) and China Construction Bank (CCB) have transaction volume than house purchase Confirmed scrapped the mortgage lending rate discount relative to restrictions, and we expect to see similar rules the benchmark for first home buyers administered across large cities in China 22 May 2017 Hebei Baoding Land sales A plot of land put out for bidding carries the This looks like a very impactful measure to contractural condition that flats built and sold on it must prevent speculation on new properties if it Confirmed be held for ten years before resale is permitted becomes widespread in the vicinity of Xiongan
19 May 2017 NDRC NDRC Enterprise Overseas enterprise bond issuances by real estate We believe central government will likely to bond issuance developers have reportedly been suspended since Q2 of continue to implement stricter rules to restrict Unconfirmed this year according to Reuters developers’ financing channel
18 May 2017 Hebei Tangshan HPR Non-residents must provide one year of tax receipts to Home prices saw a large growth in Tangshan in purchase their first home April due to home demand increased as around Confrimed seven cities implemented a HPR since March Raised down payments on first homes from 20% to 30%
18 May 2017 Shanghai Shanghai Commercial Citywide crackdown campaign on developers selling It is expected the crackdown will involve 17m use residential commercial property for use as residential housing sq.m of projects and may cause a Shanghai housing Confrimed property supply shortage in a short time it rougthly equal 84% total residential sales GFA in Shanghai in 2016
16 May 2017 Hebei Qinhuangdao Mortgage Raised down payment ratio for first-home buyers from Response to the provincial circular on 15 March 20% to 30%. ordering cities near Beijing and the Xiongan New Confirmed Economic Area to strengthen their regulation on the property sector.
16 May 2017 Hebei Chengde HPR Non-residents may no longer buy a second home Response to the provincial circular on 15 March ordering cities near Beijing and the Xiongan New Confirmed Local residents are forbidden from buying third homes Economic Area to strengthen their regulation on the property sector.
15 May 2017 Hebei Hebei HPR Hebei province issued a circular ordering cities near A fresh wave of policy tightening has started in Beijing and the Xiongan New Economic Area to require the region due to price acceleration in Beijing Confirmed non-residents to provide three years’ tax receipts to buy nearby cities. local property.
147
Province/
Status Date ministry City Related Policy Details Impact 15 May 2017 Jiangsu Nanjing HPR Property owners must hold a real estate registration Aims respond to some policy loosening issued certificate for three years before selling their property, last week, allowing non-local workers with a Confirmed up from two years before. master degree or above to buy a house without having to demonstrate income tax contributions.
12 May 2017 Shenzhen Shenzhen Commercial Shenzhen has banned developers from designing Shenzhen’s tightening is not as strict as Beijing, use residential commercial buildings with characteristics similar to which banned outright sales of even existing Confirmed housing residential housing commercial-use residential developments
10 May 2017 Jiangsu Nanjing HPR Non-local workers with a master degree or above are Very modest loosening of HPR policy shows that permitted to buy a house without having to local governments will respond to local market demonstrate income tax contributions. Confirmed conditions. Home prices in Nanjing saw a 0.2% mom decline in March, having making it four straight months of price falls.
10 May 2017 Jiangxi Designated Mortgage The following apply to cities with less than six months’ Provincial-level differentiated mortgage policy cities in inventory absorption period: aims to tailor policy according to local market province conditions. Suspend mortgage lending for third-time Confirmed home buyers
Suspended accumulation fund loans for second home buyers
10 May 2017 Beijing Beijing Property Beijing Homelink Real Estate Brokerage a large property The regulator began a crackdown campaign on agency agency, will shut 87 outlets in the city, citing to meet property agencies since H2 of last year and compliance requirements. MOHURD has repeatedly ordered local Confirmed governments to investigate and punish real- estate agencies that violate laws and regulations
8 May 2017 Guangzhou Guangzhou Mortgage Four big SOEs banks in Guangzhou have scrapped the We see the policy as more effective in curbing 10% discount of the benchmark mortgage rate for first transactions than the more draconian household Confirmed home buyers starting May 6 restrictions
5 May 2017 Shanghai Shanghai Presale lottery Shanghai Housing Management Bureau is introducing a Helps government manage headline price system lottery system for project presales. A developer may not growth in the short term, but doesn’t address Confirmed sell a unit at a higher price than set in the presale underlying supply-demand gap. document. But in a seller’s market some developers
148
Province/
Status Date ministry City Related Policy Details Impact have been circumventing these policy controls by charging additional fees.
2 May 2017 Beijing Beijing Mortgage Several Banks in Beijing have raised mortgage lending A fresh wave of policy tightening has started due interest rates for first- and second-home buyers after to price acceleration in March; this emphasis on Unconfirmed the May holiday. mortgage policy suggests more local mortgage tightening measures to come. 28 April 2017 Guangdong Heshan Mortgage Heshan, a Tier 3 city in Guangdong province, has Modest tightening in a lower-tier city may banned mortgages on third homes and raised down dampen buyer sentiment Confirmed payments on first homes to 30% from a previous 25%.
27 April 2017 Shanxi Linfen, Cash subsidy Cash subsidies for any urban property purchase by a Given these small cities are in the coal mining Luliang and for home rural resident of 200-300 yuan/m2. region and likely afflicted by high property Confirmed Jizhong purchase inventories, such policies will likely only have a minor impact. 25 April 2017 CBRC CBRC Developer Control developer’s financing growth and prevent bank Little impact on large developers, but could put financing funding going into real estate industry illegally pressure on some small developers. Confirmed
21 April 2017 CBRC CBRC Trust finance May start a new round of investigation into Continued tightening on real estate refinancing trust companies mainly affecting for smaller developers Confirmed
19 April 2017 Shanghai Stock Shanghai Bond issuance The Shanghai stock exchange may allow property This policy is designed for developers to Exchange Stock developers whose non-property revenue accounted for contribute more to the real economy as Exchange more than 30% of their overall revenue to issue bonds opposed to engaging in speculation, by using Confirmed their expertise to develop properties that can be useful for the public or to promote consumption. 19 April 2017 NDRC NDRC Long Term Working on a long-term mechanism to ensure stability We believe that a long-term mechanism is still mechanism in the housing market and will implement it at the right many years away, and the status quo of leaving Confirmed time local governments to set their own HPR or mortgage restrictions will continue. 19 April 2017 Zhejiang Pingpu HPR Non-residents are forbidden from buying a second This marks the second county in Jiaxing city to county, home implement a HPR policy. The city is due to be Confirmed Jiaxing city integrated with Shanghai, which has ignited fervent speculation in the area.
149
Province/
Status Date ministry City Related Policy Details Impact 19 April 2017 Shaanxi Xian Mortgage Minimum down payment raised to 30% for first home New round of tightening measures on Tier 2 buyers up from previous 25% cities with rapidly increasing home prices
Confirmed Requires property owners to hold a real estate registration certificate for two years before selling their property.
14 April 2017 Hainan Hainan HPR Non-residents are forbidden from buying a second Hainan is a popular tourist destination, making home. the island a hotbed for property investment.
Mortgage lending for third homes is suspended.
Confirmed Second home downpayment raised to 50% from 40%
Hainan also requires property owners to hold a real estate registration certificate for two years before selling their property.
13 April 2017 Hebei Chengde HPR Chengde city in Hebei is requiring property owners to A renewed effort from Tier 3 cities to curb hold their real estate registration certificate for two speculation and reduce house price growth. years before selling their property. Confirmed While the city bans residents from buying a second home in downtown areas and banning non-residents from buying a second new home in all districts
12 April 2017 Hainan Hainan Misleading online Hainan province announced it will further step up Cracking down on misleading information that advertisements housing purchase restrictions in a bid to stem exacerbates property speculation Confirmed speculation in the market while cracking down on misleading rumour mills
12 April 2017 Beijing Beijing Misleading online Beijing city government has ordered key property Cracking down on misleading information, which advertisements websites to withdraw misleading online advertisements, can exacerbate property speculation such as references to “school district houses”, as well as Confirmed dual-purpose buildings with residential and commercial units which have been attracting intense investor speculation are strictly forbidden
150
Province/
Status Date ministry City Related Policy Details Impact 11 April 2017 Fujian Quanzhou HPR Minimum down payment raised to 40% for homebuyers Modest tightening measure seeking to use housing provident funds to buy a second Confirmed home from 30% before
11 April 2017 Guangdong Dongguan Selling restriction Property owners must hold their real estate registration Modest tightening measure certificate for two years before being allowed to resell Confirmed their property.
10 April 2017 Beijing Beijing Land supply Beijing plans to supply 6,000 ha housing land for Falling land supply for housing construction is a construction of 1.5m housing units over the next five key long-term support for Beijing house prices, Confirmed years vs 7,468 ha housing land delivered in previous five even with the Xiongan New Area plan. years and target of 9,950 ha for the same period
10 April 2017 Guangdong Zhuhai HPR Zhuhai has upgraded its HPR policy by requiring non- New round of tightening measures on Tier 3 residents to provide five years tax receipts to purchase cities with rapidly increasing home prices Confirmed their first home
7 April 2017 Beijing Beijing Mortgage and prices Beijing will begin a pilot program to allocate “capped- Refinement of existing policies to better capped housing price housing” to people with desired expertise to allocate subsidized housing while clamping attract the skills in the area. down commercial-use residential units.
Confirmed PBOC Beijing branch issued a circular banning commercial banks from offering mortgages to individuals buying commercial-use residential properties
6 April 2017 MOHURD MOHURD Land supply MOHURD said cities with less than a year's supply of China continues to implement a differential housing inventory should increase the amount of land supply policy Confirmed residential land for sale, and cities with more than three years’ supply should suspend residential land sales.
6 April 2017 Hebei Renqiu HPR Residents are limited to owning two properties in the Not expected to diminish speculative buying downtown area; non-residents restricted to one appetite in the region Confirmed property and must provide two years tax payment receipts to buy their first home.
151
Province/
Status Date ministry City Related Policy Details Impact 6 April 2017 Hebei Baoding HPR and Mortgage Baoding city has extended their home purchase Not expected to diminish speculative buying restriction policy to Manchen district (near Xiongan appetite in the region Confirmed new area); Baoding is required to use mortgage records as well as ownership certificates when identifying second home buyers.
05 April 2017 Hebei Wenan HPR Non-residents will no longer be able to buy a second Not expected to diminish speculative buying county home in the city. Downpayments also raised for non- appetite in the region Confirmed residents from 20% to 50% for their first home.
05 April 2017 Hebei Bazhou HPR and Non-residents will no longer be able to buy a second Not expected to diminish speculative buying Mortgage home in the city. Downpayments also raised for non- appetite in the region Confirmed residents from 20% to 50% for their first home.
04 April 2017 Beijing Beijing HPR Beijing to include one-story homes into home purchase The specific ban towards one-story homes restrictions policy according to Beijing Municipal relates to what is known as “school estates”, Commission of Housing and Urban-Rural Development. whereby uninhabitably small homes are bought in order to obtain a hukou, which would allow Confirmed children to attend schools in Beijing. School estates are considered to be a type of speculative housing investment.
01 April 2017 Hebei Xiong, Freeze Local governments have banned property transactions in Any property transactions in the area are forced Rongcheng, purchases the Xiongan New Area (formed from 3 counties); sealed onto the blackmarket. Anqin Confirmed projects and agencies; threatened speculators with Counties arrest.
01 April 2017 Tianjin HPR, Mortgage Single adults and non-local households limited to one Full on HPR and strong second-home down property payment tightening will hit short-term transactions Confirmed Local households limited to two properties
60% down payment for second home
31 Mar 2017 Shandong Qingdao Mortgage Local banks in Qingdao are required to use mortgage New round of tightening measures on Tier 2 records when identifying second home buyers. Requiring cities with rapidly increasing home prices Confirmed property owners to hold their need their real estate registration certificate for two years before selling their property
152
Province/
Status Date ministry City Related Policy Details Impact 31 Mar 2017 Guangdong Guangzhou Commercial- Ban individuals from purchasing commercial-use Continued tightening measures similar with use residential residential properties. Beijing properties and Further tightening measures also include requiring sale Confirmed property owners to hold their need their real estate registration certificate for two years before selling their property
30 Mar 2017 MOHURD MOHURD Property Agent The Ministry of Housing and Urban-Rural Development This is the latest event confirming that March has released a 30-strong list of blacklisted property agent has marked a fresh round of tightening Confirmed offices and developers found to have violated regulations. measures designed to cool the property price growth
30 Mar 2017 Jiangsu Nantong Accumulation Raises the down payment ratio on second home buyers Relatively minor tightening measure, aiming to fund applying to use their accumulation fund loan to part-fund take the heat out of upgrader demand Confirmed the purchase to 40% from previous 30%.
29 Mar 2017 Beijing Beijing Affordable The Beijing municipal government said that it will provide Beijing is looking to further stabilise its local housing more than 15,000 so-called “commodity houses for living market by expanding the supply of low-cost Confirmed purposes;” such houses are generally priced ~30% lower units in the city. than ordinary commodity housing.
29 Mar 2017 Guizhou Guiyang Accumulation Guiyang raised the minimum down payment level for This policy is part of a new round of tightening fund second home buyers with accumulation fund loans to Confirmed measures on Tier 3 cities with rapidly increasing 30% from a previous 20%. home prices.
29 Mar 2017 Fujian Fuzhou Mortgage and Non-locals will no longer be able to buy a property in 5 Short-term impact on sales volume; less impact HPR urban districts by making back payments of social on prices expected security or income taxes Confirmed Local residents buying second homes in 5 urban districts need to put down a 50% down payment up from 30%
29 Mar 2017 Fujian Xiamen HPR Xiamen has prohibited sales of large homes (more than We believe mortgage tightening to be more 180 m2) to non-residents who cannot provide three effective in constricting demand than purchase Confirmed years’ tax receipts. restrictions.
153
Province/
Status Date ministry City Related Policy Details Impact 29 Mar 2017 Zhejiang Hangzhou Mortgage and Local banks in Hangzhou are required to use mortgage Hangzhou implementing similar severity HPR records (including accumulation fund loans) when tightening measures to its Tier 1 counterparts. Confirmed identifying second home buyers. Singles and non- residents in Hangzhou will be limited to purchasing one home in the downtown area of Hangzhou.
28 Mar 2017 Henan Henan Supportive Henan province will support migrant workers looking to Henan is the latest province to release policy for purchase homes via increasing mortgage lending and supportive policies for the property sector, migrant financial support for workers looking to buy homes in Tier Confirmed which indicates the province will still focus on workers 3 and 4 cities within the province. cutting property inventory in small cities this year.
27 Mar 2017 Beijing Beijing Commercial- Beijing banned individuals from purchasing commercial- While this might cause short-term supply use residential use residential properties, limiting such purchases to shortage, we do not think that this will directly properties Confirmed registered companies only. increase prices in Beijing, given that the local government maintains strict control over prices.
27 Mar 2017 Guangdong Zhongshan HPR Zhongshan (Tier 3) has begun implementing a home New round of tightening measures on Tier 3 purchase restriction policy for the city. Non-residents cities with rapidly increasing home prices must provide six months’ tax receipts before purchasing a Confirmed newly-built first home, and all residents are banned from purchasing newly-built third homes.
24 Mar 2017 Beijing Beijing Mortgage Banks are to count a divorced spouse’s purchase as a Continued tightening measures in Beijing, this second home if the divorce occurred less than one year policy is meant to combat couples filing for prior, this means divorced couples would have to pay a divorce in order to take advantage of financing Confirmed down payment ratio of 80%. loopholes.
24 Mar 2017 Sichuan Chengdu HPR The province has released a new circular expanding home Chengdu has upgraded its HPR policy three purchase restrictions (HPR) to include existing homes. times since Oct 2016. Continued tightening in large Tier 2 cities Confirmed
154
Province/
Status Date ministry City Related Policy Details Impact 22 Mar 2017 Zhejiang Jiaxing Mortgage Non-residents need pay a minimum 50% down payment New round of tightening measures on Tier 3 restrictions on their first home, an increase from 30% cities with rapidly increasing home prices Confirmed
22 Mar 2017 Hebei Langfang Mortgage Non-residents need pay a minimum 50% down payment New round of tightening measures on Tier 3 restrictions on their first home, an increase from 30% cities with rapidly increasing home prices Confirmed
21 Mar 2017 Beijing Beijing Mortgage Banks in Beijing will raise mortgage lending rates by New round of tightening measures on Tier 1 restrictions scrapping the discount from benchmark rates. Previously, cities with rapidly increasing home prices. Unconfirmed the discount on benchmark for mortgages in Beijing was typically 10%
19 Mar 2017 Hebei Shijiazhuang HPR Shijiazhuang residents who own property may not New round of tightening measures on Tier 2 purchase additional properties; non-residents must cities with rapidly increasing home prices provide one year in tax receipts before buying a first Confirmed home.
19 Mar 2017 Hunan Changsha HPR and Non-Changsha residents who already own property may New round of tightening measures on Tier 2 Mortgage not purchase additional properties. cities with rapidly increasing home prices.
Confirmed The minimum down payment on first homes will be raised to 30% from 20%.
19 Mar 2017 Hebei Baoding HPR Residents are limited to three properties in the New round of tightening measures on Tier 2 downtown area; non-residents limited to one property. cities with rapidly increasing home prices Confirmed
155
Province/
Status Date ministry City Related Policy Details Impact 18 March Guangdong Guangzhou HPR and Banks in Guangzhou must include mortgage records Home prices in Guangzhou saw a large m/m mortgage to distinguish between first or second home buyers. increase in Feb. The tightening measures are a restrictions Singles and non-residents will only be limited to response to resilient demand. purchasing one home Confirmed The minimum down payment on second homes will be raised to 50% from 40%. Guangzhou’s non-residents must provide five years’ tax receipts, an extension from the previous two-year receipt policy.
18 March Beijing Beijing Mortgage Local banks in Beijing are required to use mortgage After Beijing, all Tier 1 cities have implemented restrictions records (including accumulation fund loans) when new tightening measures on mortgages. The identifying second home buyers policy is specially targeting on upgraded Shorten the mortgage repayment period to 25 years demand Confirmed from previous 30 years. Raised down payment ratio for second homes to 60% in ordinary homes and 80% for luxury homes, from previous a 50% and 70% respectively.
16 March Zhejiang Nanjing HPR Nanjing extended its existing HPR policy to include more New round of tightening measures for Tier 2 Confirmed districts cities with rapidly increasing home prices
16 March Shandong Qingdao HPR Residents are banned from buying second homes in the New round of tightening measures for Tier 3 city’s downtown area: Non-residents will need to provide cities with rapidly increasing home prices Confirmed one years’ tax receipts to buy their first home
16 March Jiangxi Ganzhou HPR Residents are banned from buying a third home in the New round of tightening measures for Tier 3 city’s downtown area. Non-residents will need to provide cities and higher-tier suburbs coming under Confirmed two years’ tax receipts to buy their first home. Minors increased speculation. are also forbidden from having property registered in their name.
15 Mar 2017 Shanghai Shanghai Affordable Shanghai will supply 10,000 public rental housing units Public rental housing units are preferable for housing for both local Shanghai residents and migrant workers Confirmed migrant workers, many of whom find the price not holding a Shanghai hukou of public housing too expensive.
156
Province/
Status Date ministry City Related Policy Details Impact 14 Mar 2017 Zhejiang Jiaxing HPR Jiashan County to expand home purchase restrictions While central government looks set to continue (HPR) to encompass the whole county, as well as include Confirmed to tighten mortgage policy, mortgage lending existing homes into its HPR policy growth will likely slow down this year
13 Mar 2017 PBOC PBOC Mortgage The CBRC and PBOC have reportedly told banks to curtail We expect a resumption of bifurcated property new mortgage lending policy, with loosening in Tier 3 and 4 cities while Unconfirmed tightening the regulatory vice grip on Tier 1 and large Tier 2 cities.
13 Mar 2017 Hainan Sanya Mortgage Sanya has banned mortgages on third homes, Despite being a Tier 3 city, Sanya is a popular and down payments on second homes raised to tourist destination, making it a hotbed for Confirmed 50% from previous 30%. property investment.
13 Mar 2017 Ministry of Ministry of Mortgage Ministry of Finance (MOF) is researching Given the concerted effort to reduce both Finance Finance income tax deductions on mortgage payments, mortgage lending and house price growth, we Confirmed according to Zhu Guangya, vice minister of do not expect this policy to be implemented in MOF 2017.
10 Mar 2017 Jiangxi Chuzhou Mortgage Chuzhou raised down payment ratios for second and Rampant demand in satellite cities has been a third homes to 40% and 60% from previous 30% and recent theme following the property tightening 40%. campaign in October centering on large cities. We expect tightening measures in more of these cities to follow.
9 Mar 2017 Jiangxi Nanchang HPR Nanchang may ban residents from buying a second Continued targeting of cities with hot property home. Non-residents will need to provide two years’ tax markets. Confirmed receipts to buy their first home. Minors (below the age of 18) are also forbidden from having property registered in their name 7 Mar 2017 Hebei Zhangjiakou HPR and Chongli District intensified its HPR. While raising down Continued targeting of cities with hot property Mortgage Confirmed payment ratios for second and third homes to 50% and markets. 70% for ordinary and non-ordinary housing 7 Mar 2017 Anhui Land Suspend new residential land supply in small cities with Gradual impact on supply-demand imbalances high property inventories, while increasing supply in hot at best (much slower than demand-side policies Confirmed markets such as its capital city Henafei like mortgage and purchase limits)
7 Mar 2017 NPC Property tax NPC will not review the property tax this year, though is The NPC must review the draft, and solicit spokesperson Confirmed in its five-year plan, according to Fu Ying, NPC public opinions, repeating the process at least twice before passing it. 157
Province/
Status Date ministry City Related Policy Details Impact We do expect the property tax to be in place by 2020, though local implementation may take longer.
3 Mar 2017 Zhejiang Hangzhou Home purchase From half-strength to full-strength purchase Likely to slow sales volume as similar restrictions restrictions: purchase restrictions have in other cities Adds restriction on local residents (may not buy more Confirmed than two properties) and tougher qualification for non- residents (new condition that now must show two year’s tax receipts) 2 Mar 2017 CBRC Mortgage New CBRC head Guo Shuqing says banks will pursue Overall mortgage stance expected to be bifurcated policy on property. Tightening in Tier 1 and tight for now given priority of controlling Confirmed hot Tier 2 markets, while prioritising destocking in Tier heated market prices 3 and Tier 4 cities. 2 Mar 2017 Hebei Zhuozhou HPR & Forbids non-residents from buying a second home. HPR to stabilise the local property market as Mortgage Raise down payment ratios on first and second homes home prices have risen rapidly on the back Confirmed to 30% and 50% from 20% and 30%, respectively. of Beijing’s development plans.
1 Mar 2017 Beijing Beijing Capped prices unit Beijing will not allow residents who have bought or Aims to ensure that low income families Confirmed sold a property in the past three years to buy capped- have better access this this kind of price units subsidized housing. 1 Mar 2017 Guangdong Guangdong Mortgage term Banks in Guangdong province (excluding Shenzhen) can Higher effective mortgage rates likely to offer a maximum 10% discount to the benchmark dampen market sentiment. Unconfirmed mortgage rate for first-home buyers, down from previous 15% 28 Feb 2017 Fujian Lianjiang HPR Forbids non-residents from buying a home smaller Continued targeting of cities with hot Confirmed than 144sqm. property markets.
24 Feb 2017 Shanghai Shanghai Property sales Minhang and Jiading districts are cracking down on Squeezes effective housing supply, Confirmed sales of commercial property for residential use. supporting prices in the face of slowing demand. 23 Feb 2017 Vice Housing Property tax Lu Kehua talked about speeding up property tax Not likely to come out this year given the Minister Confirmed legislation. legislative process and political obstacles.
22 Feb 2017 Beijing Beijing Land Beijing’s 2016 land supply plan envisages a cut in new Supports continued high land prices and Confirmed land supply to 3,900 ha in 2017 from 4,100 ha in 2016 housing prices, despite slowing housing sales and tighter mortgage policy
158
Province/
Status Date ministry City Related Policy Details Impact 21 Feb 2017 Guangdong Guangdong Land Guangdong provincial land management bureau said Increasing land supply as a strategy makes the government would increase residential land supply sense to tackle high home prices, but has a Confirmed in cities with rapidly increasing prices and reduce land weak track record in China as local supply in cites with excess inventory governments have a monopoly on new land and tend to hold back supply. 20 Feb 2017 Anhui Hefei Pre sales Hefei released new policies to crack down on developer Intention is to boost new supply and cap practices: prices – could have a short-term effect in - holding back housing that is ready for sale in price curbs, but longer term could have the Confirmed expectation of price appreciation opposite effect by discouraging housing - in effect raising prices by adding high extra fees for development. parking spaces or decoration 20 Feb 2017 Big four banks Developers’ The big four state-controlled banks have tightened Likely to cool land market auctions and may financing developers’ financing have a larger financing impact on smaller Unconfirmed developers with few alternative funding channels 17 Feb 2017 Beijing Price cap 80,000 yuan/m2 price cap on completed new homes in Development of high-end projects may slow Beijing, according to developers (ie not presale, which while price caps remain in place, leading to Unconfirmed are already closely regulated). more existing home transactions and price rises. 14 Feb 2017 AMAC Developer Asset management products suspended from investing Further tightening on developer financing. financing Confirmed in property projects in 16 cities on the property price watch-list 13 Feb 2017 Guangdong Shenzhen Price cap 60,000 yuan/m2 price cap on new homes in Longhua Development of high-end projects may slow District, according to a developer, and vs comparables while price caps remain in place, leading to Unconfirmed of 100,000 yuan/m2 more existing home transactions and price rises. 10 Feb 2017 Beijing Mortgage Banks in cities such as Beijing, Guangzhou and Nanjing Higher effective mortgage rates likely to Guangdong Unconfirmed can only offer 10% discount of the benchmark damp market sentiment. Jiangsu mortgage rate. 9 Feb 2017 PBOC Shanghai Mortgages PBOC directive on banks to delay draw down of Continued mortgage tightening in large city mortgages by up to 3 or 4 months. markets. Banks are required to ensure that new mortgages in Q1 Unconfirmed < Q4. New mortgages in Shanghai fell to 14-month Banks to monitor mortgage amount every 10 days low of 15.5bn yuan in Dec, down by 10.1bn instead of monthly. from Nov.
8 Feb 2017 Beijing Beijing Existing home Maximum mortgage duration cut to 25 years from 35 Existing home market likely to see slower mortgages Unconfirmed years for existing homes sales activity.
159
160