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Shanghai details housing restrictions
By Cao Qian |
February 2, 2011, Wednesday
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Print Edition
Print Edition
BUYERS of second homes who apply to Shanghai's public housing fund will need to put down 60 percent of the price, up from 50 percent, the city government announced yesterday.
It was releasing details for the local implementation of the latest tightening policies issued by the central government in a bid to curb speculation.
Interest rates for such mortgages should be at least 10 percent above the standard level, a notice issued by the Shanghai Information Office said.
The measures came into effect yesterday, the Shanghai Provident Fund Management Center said.
Shanghai has also promised to announce its annual target of controls on new home prices by the end of March, a requirement by the central government.
"The latest increase in down payment for second home buyers under the city's public housing fund program, by itself, will have quite a small impact on the city's housing market due to the comparatively low lending ceiling of the program," said Ma Ji, research manager with Shanghai Centaline Property Consultants Ltd, which operates more than 240 brokerages across the city.
"However, the overall influence of the country's latest actions to curb property speculation, which include a stricter home purchase ban, will probably cut home sales significantly."
The transaction volume of homes, both new and existing, will likely drop at least 50 percent in the coming few months in the city, Ma said.
The lending ceiling for each household under Shanghai's public housing fund program is now 400,000 yuan (US$60,698) for second-home buyers but the majority of homes sold in Shanghai nowadays cost between 1.5 million and 2.5 million yuan, Ma said.
Currently, the provident fund center only extends loans to second-home buyers if the floor area of their first home divided by the number of family members is no larger than the local average of 34 square meters per person.
Meanwhile, Shanghai will ensure full implementation of all tightening policies introduced last week by central government, according to the notice.
The down payment for buyers of second homes at commercial banks will be raised to 60 percent from the previous 50 percent, with interest rates standing 10 percent above the standard level.
Local families who already own two or more houses and non-local families who have one home already in the city will be banned from buying any more homes here.
The home-purchase ban also applies to non-locals who cannot provide tax or social insurance certificates to show their length of residence in the city.
For local families who have one home already and non-local families who can prove their length of residence, they are both entitled to buy only one more home.
Residential properties in Shanghai will be charged a full transaction tax if they are sold within five years of purchase.
A separate notice, on the official website of the city's taxation bureau, says that owners of taxable homes are required to pay their annual property tax voluntarily by December 31 every year and a daily 0.05 percent surcharge would be levied if there was any delay.
It was releasing details for the local implementation of the latest tightening policies issued by the central government in a bid to curb speculation.
Interest rates for such mortgages should be at least 10 percent above the standard level, a notice issued by the Shanghai Information Office said.
The measures came into effect yesterday, the Shanghai Provident Fund Management Center said.
Shanghai has also promised to announce its annual target of controls on new home prices by the end of March, a requirement by the central government.
"The latest increase in down payment for second home buyers under the city's public housing fund program, by itself, will have quite a small impact on the city's housing market due to the comparatively low lending ceiling of the program," said Ma Ji, research manager with Shanghai Centaline Property Consultants Ltd, which operates more than 240 brokerages across the city.
"However, the overall influence of the country's latest actions to curb property speculation, which include a stricter home purchase ban, will probably cut home sales significantly."
The transaction volume of homes, both new and existing, will likely drop at least 50 percent in the coming few months in the city, Ma said.
The lending ceiling for each household under Shanghai's public housing fund program is now 400,000 yuan (US$60,698) for second-home buyers but the majority of homes sold in Shanghai nowadays cost between 1.5 million and 2.5 million yuan, Ma said.
Currently, the provident fund center only extends loans to second-home buyers if the floor area of their first home divided by the number of family members is no larger than the local average of 34 square meters per person.
Meanwhile, Shanghai will ensure full implementation of all tightening policies introduced last week by central government, according to the notice.
The down payment for buyers of second homes at commercial banks will be raised to 60 percent from the previous 50 percent, with interest rates standing 10 percent above the standard level.
Local families who already own two or more houses and non-local families who have one home already in the city will be banned from buying any more homes here.
The home-purchase ban also applies to non-locals who cannot provide tax or social insurance certificates to show their length of residence in the city.
For local families who have one home already and non-local families who can prove their length of residence, they are both entitled to buy only one more home.
Residential properties in Shanghai will be charged a full transaction tax if they are sold within five years of purchase.
A separate notice, on the official website of the city's taxation bureau, says that owners of taxable homes are required to pay their annual property tax voluntarily by December 31 every year and a daily 0.05 percent surcharge would be levied if there was any delay.
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