Shenzhen made major adjustments to home buying rules yesterday in a bid to help boost home sales and stabilize the city's real estate market.
According to a notice issued by the city's housing authority, the residency duration requirement for residents with hukou (permanent residency permit) will be canceled and requirements for paying personal income tax and participating in social security for a certain period of time will also be removed.
A household that has at least one hukou holder can purchase up to two homes while a single adult with a hukou (including divorcees) can purchase one apartment.
Families without a hukou-holding member and single individuals (including divorcees) without hokou, who can provide proof of continuous payment of personal income tax or social security in the city for the previous three years, can each purchase one apartment.
The new policy is effective from the date of issuance.
According to financial and property market analyst Liu Xiaobo, the new policy has greatly eased home buying restrictions for residents who hold hukou.
Previously, an individual was required to hold hukou for at least three years and continuously pay social security or personal income tax for at least three years before being allowed to purchase a home in Shenzhen.
Under the new policy, an individual is eligible to purchase a property in Shenzhen upon obtaining Shenzhen hukou as long as they are 18 years of age or older. Parents who relocate to Shenzhen to reunite with their adult children with Shenzhen hukou are also eligible to purchase homes.
In addition, local youths with hukou who reach 18 years old can now purchase properties without having to pay social insurance for three years.
Additionally, the new policy has relaxed purchasing restrictions for non-hukou populations.
Previously, non-hukou residents who were eligible to purchase a home were required to provide documents proving that they have paid personal income tax or social security in the city for five years or more without interruption before the purchase date. The new policy cut the five years to three.
Currently, the strictest cities in China in terms of home purchase restrictions are Beijing, Shenzhen, Shanghai, and Guangzhou.
The restrictive home buying policy was first introduced by the State Council in April 2010 to limit the number of properties local residents could purchase in more than 40 cities with soaring real estate prices.