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Yangzhou plans to reward new home buyers
By Cherry Cao |
May 9, 2012, Wednesday
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Print Edition
Print Edition
YANGZHOU City in Jiangsu Province intends to reward buyers of new homes smaller than 144 square meters, becoming the latest Chinese city to try to ease the tight housing policy despite failure of earlier bids by other cities.
For one year starting July 1, buyers of newly-built, decorated homes in Yangzhou will be paid between 0.4 and 0.6 percent of the total housing price depending on the home size, the city's finance and housing bureaus said in a joint statement on Monday.
The homes should be bought during the period and applications for the payment must be tendered within three months of the purchase, they said.
Homes not larger than 90 square meters will be eligible for a rate of 0.6 percent. Those above 90 square meters but smaller than 120 square meters will be paid at the rate of 0.5 percent and homes above 120 square meters but smaller than 144 square meters will be eligible for a rate of 0.4 percent.
"By fuelling some policy-loosening hopes among the public, the Yangzhou government is actually aiming to boost some confidence in the residential property market," Lu Qilin, a researcher at Shanghai Deovolente Realty Co.
But the market was sceptical over the policy which goes against the central government's determination to lower home prices to a "reasonable" level.
"Similar endeavors made earlier by some governments around the country all failed and the initiative in Yangzhou might be another short-lived one," said Sky Xue, an analyst at China Real Estate Information Corp. "The central government has been repeatedly reiterating its commitment to bringing housing prices down over the past few months."
In February, Wuhu in Anhui Province said it would waive a deed tax and subsidize home purchases. But it had to shelve the move a few days later due to opposition from the central government.
Sales of new homes, excluding government-funded affordable housing, in China fell by 15.5 percent annually to 133.87 million square meters in the first quarter, according to the National Bureau of Statistics. The value fell 17.5 percent year on year to 709.9 billion yuan (US$112.7 billion).
For one year starting July 1, buyers of newly-built, decorated homes in Yangzhou will be paid between 0.4 and 0.6 percent of the total housing price depending on the home size, the city's finance and housing bureaus said in a joint statement on Monday.
The homes should be bought during the period and applications for the payment must be tendered within three months of the purchase, they said.
Homes not larger than 90 square meters will be eligible for a rate of 0.6 percent. Those above 90 square meters but smaller than 120 square meters will be paid at the rate of 0.5 percent and homes above 120 square meters but smaller than 144 square meters will be eligible for a rate of 0.4 percent.
"By fuelling some policy-loosening hopes among the public, the Yangzhou government is actually aiming to boost some confidence in the residential property market," Lu Qilin, a researcher at Shanghai Deovolente Realty Co.
But the market was sceptical over the policy which goes against the central government's determination to lower home prices to a "reasonable" level.
"Similar endeavors made earlier by some governments around the country all failed and the initiative in Yangzhou might be another short-lived one," said Sky Xue, an analyst at China Real Estate Information Corp. "The central government has been repeatedly reiterating its commitment to bringing housing prices down over the past few months."
In February, Wuhu in Anhui Province said it would waive a deed tax and subsidize home purchases. But it had to shelve the move a few days later due to opposition from the central government.
Sales of new homes, excluding government-funded affordable housing, in China fell by 15.5 percent annually to 133.87 million square meters in the first quarter, according to the National Bureau of Statistics. The value fell 17.5 percent year on year to 709.9 billion yuan (US$112.7 billion).
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