2015 is a year of major adjustment in the property market. Although the inventory pressure across the country is very high, as the end of the year approaches, some large and medium-sized cities still show a clear momentum of recovery. This is in line with the various measures introduced in the property market over the past year. Loose policies are inextricably linked. Next, let us take stock of what national policies the government has launched since 2015 in order to rescue the market.

Policy 1 cuts interest rates

According to statistics, since November 2014, the central bank has cut interest rates 6 times and RRRR 5 times, with an average of one cut every two months. The base interest rate dropped from the original 6.15% to 4.9%, a decrease of as much as 25.5%. This is already the lowest level in the past decade, and the provident fund loan interest rate was already a "historically low" earlier.

Policy to reduce down payment for the second time

On March 30, 2015, the central bank issued a notice that for households that own one house and have outstanding home purchase loans to purchase a second house, The down payment ratio is adjusted to no less than 40%. If you use a housing provident fund loan to buy your first ordinary home, the down payment is 20%; if you own a house and have paid off the loan, you can apply for the housing provident fund again to buy a house, and the down payment is 30%.

On September 1, 2015, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, and the People's Bank of China notified that households that own one house and have paid off the corresponding home purchase loan can apply for housing provident fund again to improve their living conditions. For entrusted loans to purchase houses, the minimum down payment ratio is reduced from 30% to 20%.

On September 30, 2015, the People's Bank of China and the China Banking Regulatory Commission jointly issued a major policy on the real estate industry. In cities that do not implement "purchase restriction" measures, commercial personal housing loans will be provided to households purchasing ordinary housing for the first time. , the minimum down payment ratio is adjusted to no less than 25%.

Three policies to reduce taxes

On March 30, 2015, the Ministry of Finance of the People's Republic of China issued the "Notice on Adjusting the Business Tax Policy on Personal Housing Transfers", which required that, Starting from March 31, the business tax exemption period for personal housing transfers will be restored from 5 years to 2 years. If an individual sells a house that has been purchased for less than 2 years, the full amount of business tax will be levied; if an individual sells a non-ordinary house that has been purchased for more than 2 years (including 2 years), the business tax will be levied on the difference between the sales income and the purchase price of the house. Business tax; individuals who sell ordinary housing purchased for more than 2 years (including 2 years) are exempt from business tax.

Policy 4: Promote off-site loans

On September 30, 2015, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance and the Central Bank jointly issued the "Notice on Effectively Improving the Utilization Efficiency of Housing Provident Funds." Starting from October 8, the provident fund's off-site loan business will be fully implemented, and cities where conditions permit will implement asset securitization of housing provident fund personal housing loans.

Policy Five: Opening Up Two Children

The Fifth Plenary Session of the 18th Central Committee of the Communist Party of China, which concluded on October 29, 2015, proposed that the full implementation of one-to-one Couples can have two children policy. The introduction of the comprehensive opening up of second-child housing immediately aroused considerable repercussions in the property market. Four-bedroom units replaced three-bedroom units and became the mainstream in the market, with large units generally selling well.

Policy Six: Relaxation of “foreign restrictions”

On August 27, 2015, six ministries and commissions jointly issued a document announcing adjustments to the foreign investment access and management policies in the real estate market. The notice clarifies that qualified overseas institutions and individuals can purchase houses in China. This is the first time that the “Export Restriction Order” has been relaxed nationwide since it was promulgated in 2006.

Policy Seven Cancels the “7090” Policy

On March 27, 2015, the real estate “7090” policy, which had been in effect for 9 years, was officially withdrawn. The “7090” policy was introduced in 2006. In order to control the rapid rise of the property market, the government issued the "National Six Regulations" to regulate the property market, stipulating that for newly approved and newly started commercial housing, housing with an area of ??less than 90 square meters must account for more than 70% of the total development and construction area. The background at that time was to protect the immediate demand for small and medium-sized commercial housing and curb investment and speculative demand. However, this policy also "wrongfully killed" the improvement demand, resulting in insufficient supply of large-sized commercial housing in the market for many years.

In addition to these policies, there are still many rumors that are being brewed, such as: canceling educational real estate, canceling purchase restrictions in first-tier cities, provident fund subsidized loans, etc. If these policies can be implemented, I believe it will have a big impact on the property market.

(The above answer was published on 2015-12-17, please refer to the actual relevant current home purchase policies)

For comprehensive and timely real estate information, click to view