Hangzhou in East China's Zhejiang Province has implemented several new housing policies, targeting optimizing the transactions for second homes, improving tax regulations, and better meeting the demand for housing for families with three children, to promote the stable and healthy development of the local real estate market.
The fresh move comes in line with the country's vows that housing is for living not for speculation, according to an official Wechat post released by the provincial government.
For qualified second-hand housing purchases, households settled in the city less than five years no longer need to pay for the urban social insurance for 24 consecutive months prior to the date of purchases.
Meanwhile, non-residential households can only pay for the urban social insurance or personal income tax for 12 consecutive months before the date of purchase instead of the previous 48 months.
In respect to tax optimization, the notice said that the value-added tax exemption period will be adjusted from five years to two years for individuals transferring their only properties within the limits of purchase restriction.
Households with three children can purchase an additional property within the restriction requirements, while eligible families with three children can enjoy benefits as applicants without any property when applying for commercial housing purchases.
The policies implemented in Hangzhou suggest a continuous relaxation of housing policies with positive signals which will help promote the subsequent stable and healthy development of the real estate market, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, said on Tuesday.
Yan noted that the change further relieved the restrictions for new city residents and non-residential population which will help revitalize second-hand houses in the city and accelerate the circulation of local properties.
China's central bank and banking and insurance regulator on Sunday moved to lower the interest rate floor on mortgages for first-time homebuyers by 20 basis points off the benchmark loan prime rate.