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City unveils restrictions on purchasing a property
By Han Jing |
March 8, 2011, Tuesday
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Print Edition
Print Edition
HANGZHOU unveiled its rules to restrict home purchases last week, becoming the latest city in the country to implement such bans following a central government call to cool down soaring property prices and curb speculation in the housing market.
Buyers of second homes who get loans from either commercial banks or Hangzhou's public housing fund should put down 60 percent of the price. Interest rates for such mortgages should be at least 10 percent above the standard level, according to the new rules.
Local families who have one apartment only and non-local households who do not own an apartment now but are capable of providing tax or social insurance certificates to prove their residence for an accumulative 12 months over the past two years in the city are entitled to buy only one more property, including a newly built commercial residence or second-hand home.
But local families who already have two or more houses and non-locals who have one or more houses will be banned from buying any more.
Non-locals who cannot provide tax or social insurance certificates to prove their length of stay won't be allowed to buy apartments in the city, according to an official document released by the city government. Those who violate the rules to purchase homes won't be granted with property registration.
Residential properties in Hangzhou will be charged a full transaction tax if they are sold within five years of purchase. Local government will step up the inspection of property projects priced much higher than the average home price level in the surrounding areas.
Hangzhou government will give priority to the construction of affordable housing and ensure at least 70 percent of the total housing land supply for affordable housing and medium and small residential houses. This year's commercial housing land supply will not be less than the actual annual supply average in the past two years.
The city will set aside 10 percent of the commercial housing land supply this year for the construction of affordable housing. According to the new regulations, the government will put more emphasis on public rental houses.
The city plans to construct 600,000 square meters of public-rent units, 70,000 square meters of low-rent houses, 800,000 square meters of budget houses and 2 million square meters of houses for residents relocated for the city urbanization projects this year. More than 5 million square meters of affordable houses will be finished by the end of this year.
The deadlock in Hangzhou's property market since the Spring Festival this year is much likely to be broken as the curb measures come out.
"If the property market is still stuck in a standstill and developers suspend the launch of new property projects, the house prices may well decline in some parts of Hangzhou in the second half of this year," said Ye Jian, president of Kunlun Properties.
The latest home-purchase restriction in Hangzhou, rather similar to what has been implemented in Shanghai and Guangzhou in Guangdong Province, is much more lenient compared with an earlier announced ban in Beijing.
According to an online survey, 70 percent of interviewees consider the home purchase curb slack and lenient while almost 60 percent think the restriction will deliver greater impact on non-local families. About 30 percent believe the new regulation will bring about a property price drop of no more than 10 percent while 40 percent hold the opinion that the home prices will continue to rise.
In the country's capital city, non-local families need to provide tax or social insurance certificates to show their residence in the city for five consecutive years so as to qualify to buy an apartment if they don't own one at present, the Beijing government announced in the middle of last month.
A couple of Chinese cities have recently announced detailed regulations to restrict home purchases in the same effort to curb housing speculation.
Buyers of second homes who get loans from either commercial banks or Hangzhou's public housing fund should put down 60 percent of the price. Interest rates for such mortgages should be at least 10 percent above the standard level, according to the new rules.
Local families who have one apartment only and non-local households who do not own an apartment now but are capable of providing tax or social insurance certificates to prove their residence for an accumulative 12 months over the past two years in the city are entitled to buy only one more property, including a newly built commercial residence or second-hand home.
But local families who already have two or more houses and non-locals who have one or more houses will be banned from buying any more.
Non-locals who cannot provide tax or social insurance certificates to prove their length of stay won't be allowed to buy apartments in the city, according to an official document released by the city government. Those who violate the rules to purchase homes won't be granted with property registration.
Residential properties in Hangzhou will be charged a full transaction tax if they are sold within five years of purchase. Local government will step up the inspection of property projects priced much higher than the average home price level in the surrounding areas.
Hangzhou government will give priority to the construction of affordable housing and ensure at least 70 percent of the total housing land supply for affordable housing and medium and small residential houses. This year's commercial housing land supply will not be less than the actual annual supply average in the past two years.
The city will set aside 10 percent of the commercial housing land supply this year for the construction of affordable housing. According to the new regulations, the government will put more emphasis on public rental houses.
The city plans to construct 600,000 square meters of public-rent units, 70,000 square meters of low-rent houses, 800,000 square meters of budget houses and 2 million square meters of houses for residents relocated for the city urbanization projects this year. More than 5 million square meters of affordable houses will be finished by the end of this year.
The deadlock in Hangzhou's property market since the Spring Festival this year is much likely to be broken as the curb measures come out.
"If the property market is still stuck in a standstill and developers suspend the launch of new property projects, the house prices may well decline in some parts of Hangzhou in the second half of this year," said Ye Jian, president of Kunlun Properties.
The latest home-purchase restriction in Hangzhou, rather similar to what has been implemented in Shanghai and Guangzhou in Guangdong Province, is much more lenient compared with an earlier announced ban in Beijing.
According to an online survey, 70 percent of interviewees consider the home purchase curb slack and lenient while almost 60 percent think the restriction will deliver greater impact on non-local families. About 30 percent believe the new regulation will bring about a property price drop of no more than 10 percent while 40 percent hold the opinion that the home prices will continue to rise.
In the country's capital city, non-local families need to provide tax or social insurance certificates to show their residence in the city for five consecutive years so as to qualify to buy an apartment if they don't own one at present, the Beijing government announced in the middle of last month.
A couple of Chinese cities have recently announced detailed regulations to restrict home purchases in the same effort to curb housing speculation.
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