Fujian Launches Provincial Level Real Estate Bailout Policy

There are a lot of policy changes. There is preferential sales tax on new home sales. For existing homes held for more than 5 years, there is no sales tax. People who pay off their mortgages in full qualify as as a first-time home buyer when borrowing again. There will be no limits on price adjustments for new home pre-sales. A lot of the measures are government related or not concrete: timely approval for developers, faster mortgage processing, etc.

The key to these reforms is market sentiment. All the reforms can support the market, but if sentiment doesn't turn around, these policy changes will not change the trend. At best they will nudge it, and a successful nudge will be evident in the data over the next month or two, but if sentiment doesn't turn, on a long-term price chart the bailout will barely be detectable.

Fujian is under serious economic pressure at the moment due to overcapacity in the textile and shoe industry weighs on local economies.


福建出台内地首个省级救市政策：放开限购 房贷优惠

China Securities Network (Reporter Guo Xiaoping) Fujian Ministry of Housing website on the 8th release "Fujian Provincial Department of Housing and Urban Several Opinions on Promoting the stable and healthy development of the real estate market", "views" a total of eight, which proposed the implementation of classification regulation, Fuzhou City, Xiamen City, according to local market changes, adjustments let housing restriction measures.

Opinion reads as follows

A reasonable guide housing consumption

(A) encourage municipalities, county government based on local conditions, buyers just need to be on the following preferential policies: a first purchase ordinary commodity housing, including the introduction of experts from outside the province, the headquarters staff of economic enterprises stationed Rumin, seeking refuge from the province (including foreign workers) for the first time to buy in Fujian children's parents and other staff at the local ordinary commodity housing; city business, agricultural workers transfer of population in urban areas for the first time to buy ordinary commodity housing; university graduates for the first time to purchase ordinary commodity housing; adult children for the first time to buy ordinary commodity housing. 2 first purchase improve sexual ordinary commodity housing (hereinafter referred to as the first change rooms), including increased housing area, increasing the elevator functions, optimizing the lot grade, buy "school district room" and so on. 3 is monetary compensation resettlement households purchase ordinary commodity housing.

(B) the residential district building floor area ratio above 1.0, a single set of building area of ​​144 square meters (including 144 square meters) of housing belonging to the ordinary commodity housing.

(C) the individual places to buy commodity housing, for themselves and their parents and minor children may be local household registration policy in cities and towns where the buyers settled. Encourage long-term city business, agricultural workers legally transfer of population transfer its original rural housing, housing purchases settled in the town.

(D) ensure that funds housing fund under the premise of safety and normal extraction, give priority to employees provident fund deposit for the first time the use of the loan fund housing demand. Implementation of the policy fund deposit workers in different places within this province to purchase a home can be extracted housing fund. Fund management institutions to make reasonable use of "revolution business", government debt and other financing methods to ease the financial pressure on the credit fund.

(Five) for families to buy the first suite area of ​​90 square meters (including 90 square meters), the deed tax levied at the rate of 1%; area of ​​90 to 144 square meters (excluding 90 square meters), the deed tax rate by 1.5% levy. Monetary compensation is resettlement households to purchase a commodity housing for resettlement, given Mianzhengqishui; purchase multiple sets of commodity housing, and is equal to the area of ​​resettlement housing part, give Mianzhengqishui. Around for monetary compensation is resettlement households, can give a certain percentage of reward by monetary compensation standards.

(Vi) the development of second-hand housing market, the transfer of individuals to buy more than 5 years (including 5 years) of ordinary housing, exempt from sales tax. Individuals to buy houses time to determine the time by entering into the sale of housing.

Second, the implementation of classification regulation

(A) in Fuzhou, Xiamen City, according to local market changes, adjustments let housing restriction measures.

(B) within the province to handle the purchase contract (net label), loans, property registration and other procedures, provided certain number of years without tax or social insurance contributions that. Home buyers who identified copy number does not include its self-help housing, housing reform, inheritance room, Resettlement housing and housing have been used to pay off the loan, which has a number of sets of queries only in the purchase of housing the seat of housing registration agency. Query proof housing registration issued by the agency only to buyers who have single-handedly set out in the copy number of housing situation. The first families to purchase housing reform identified by the first suite.

(C) After the buyers who pay off home loans, apply for loans to purchase again identified by the first loan. Financial institutions in loan down payment and interest rates low limit policy implementation in accordance with regulations.

Third, implement differentiated housing credit policy

(A) the commercial banks to increase the supply of housing development loans, and to actively seek to develop commercial Bank line of credit, give priority to ordinary commercial housing development projects reasonable capital needs, to further improve the efficiency of development loans credit approval. Credit conditions for achieving development loans, the timely release and promote the increased real estate market supply.

(B) the commercial banks should strive with sufficient amount of individual housing loans, personal priority to meet the needs of first-time buyers of ordinary housing loans. Accelerate the acceptance, approval, issuing housing loans to individuals, not pressure alone, without pressure loan. Remote buyers can apply for mortgage loans to purchase the seat commercial banks, commercial banks should support.

(C) the financing of real estate development projects included in the scope of corporate funds to coordinate emergency response mechanism. In the construction or sale of real estate projects appear liquidity risk, the establishment of the government, housing prices, banks, contractors cooperation and coordination mechanism, in accordance with the "Category disposal" principle, one policy, implemented by means of restructuring and other assistance, completion of the project promoting sales, and resolve risks. On the merger and reorganization of enterprises and projects related to real estate, financial institutions should actively provide financing support and related financial services.

Fourth, the optimization of market development environment

(A) further simplify administrative approval procedures and shorten the approval time. Real estate pre-licensing department of the sale price fluctuation range is not limited. Price department of real estate sale prices and changes in the magnitude of not filing. Electricity, gas, water, telecommunications and other sectors of the real estate project facilities construction, should actively cooperate to implement tracking service.

(B) For real estate companies adapt to market changes, not changes in the volume ratio, building density and other indicators, and meet parking and other public facilities in case, size adjustment made by the planning department shall timely approval. In addition to state-owned or state-controlled real estate projects, other real estate projects can independently direct contracting by development companies, select survey, design, construction and supervision units.

(C) to strengthen financial supervision of real estate sale, real estate sale license conditions "into the development and construction of capital construction projects reached 25% of total investment," defined as: the level and below (ie, nine and below) the image of the main building construction progress reached the ground floor, high-rise (ie, ten floors above and) building the image of the main construction progress reached the ground floor, high-rise (ie building height of 100 meters and above) the image of the main building construction progress reached ground ± 0.00.

(Iv) strengthen awareness contract, strict compliance with real estate sales contracts. Support for real estate enterprises to adapt to market conditions, make price adjustments accordingly. Local government and public security departments should resolutely stop "room downtown," pursue its legal responsibility according to the law and maintain social stability.

Fifth, to promote the construction of affordable housing

(A) accelerate the construction of the government to provide basic housing security-based, market-oriented to meet the needs of multi-level housing supply system. Adhere rental simultaneously to rent mainly to provide housing affordable housing projects to meet the basic housing needs. To consolidate the rental housing as the main form, for low-income and middle-income urban families with housing difficulties, and to transfer the agricultural population into urban housing security system. Perfect rental subsidy system, through payment of rental subsidies, to enhance the ability of low-income families rent housing on the market. Proper development of affordable housing and housing price of goods, there is a certain ability to pay for urban low-income housing for needy families. Vigorously promote the shantytowns, accelerate the implementation of the transformation of villages, stone structure housing reform, orderly comprehensive renovation of old residential quarters, dilapidated housing and non-housing reconstruction kits.

(B) municipalities, county government purchasing and storage methods can be taken to actively and steadily Shouchu commodity housing as affordable housing. Real estate development project, built by the government with the repurchase of affordable housing and resettlement housing, built with part of the sales tax levied by the Government to calculate the tax base repurchase price.

Sixth, encourage the development of green house

(A) the development and construction of green building residential quarters, calculated according to the following provisions, given the rate of increase in the volume of awards: one star green building, green building by calculating the total area of ​​0.5%; two-star green building, green building by calculating the total area of ​​1% ; three-star green building, green building by calculating the total area of ​​1.5%. Volume ratio reward indicators as part of the land transfer conditions.

(B) the purchase of a star green building commodity housing, deed to pay a reduced rate of 90%; purchase two-star green building commodity housing, deed to pay a reduced rate of 80%; purchase three-star green building commodity housing, deed to pay a reduced rate of 60% .

(C) to encourage the development and construction, purchase of commodity housing decoration, decoration part generated corresponding sales tax, deed tax shall be fully rewarded by the level of government finances. Specific measures for municipal and county governments based on actual development.

Seven, improve land supply mechanism

(A) cities, counties, according to local commercial housing inventory and changes in market supply and demand, reasonably determine the commodity supply of residential land, to avoid excessive concentration of commodity residential land delivery; and for changes in the market situation, no longer bundled with built-star hotel As the transfer conditions.

(Two) cities and counties to establish a tracking service delivery mechanisms to enhance the transfer of real estate projects that have been in the case of tracking actual delivery, enhance compliance awareness and timely delivery to solve problems encountered in the process, to ensure that the provisions of the contract by the land transfer full pay period to effectively solve the land after corporate transferee to delay delivery problem.


(C) For commercial inventories, to the period of over 24 months of city, county, should Tiaojian commercial residential land transfer size.

Eight, strengthen market analysis and monitoring

(A) increase the real estate market information disclosure efforts to publish timely and accurate market supply and demand information. Improve the real estate market risk early warning mechanism, municipalities, counties to establish market anomalies, sudden upward a government report important information system. Pressure on the stock market, big cities and counties to timely develop risk response plans.

(B) pay close attention to public opinion, strengthen public opinion guidance, stabilize market expectations, is conducive to the formation of a stable and healthy development of the real estate market continued atmosphere of public opinion.

Nine, this 'views' since August 1, 2014 implementation of preferential policies valid for one year. Municipalities, county government may in accordance with the "Opinions" requirement, study and formulate specific measures for implementation.

Fujian Provincial Department of Housing and Urban-Rural Development

July 29, 2014