Housing market Photo:VCG
Beijing Eases Housing Restrictions to Boost Market and Job-Housing Balance
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Beijing announced meaningful optimizations to its housing policies on Friday, aiming to stabilize the market and improve the alignment between employment and housing opportunities. Key changes include removing purchase restrictions for eligible families outside the fifth ring road.
Expanded Eligibility and Loan Support
Families meeting Beijing’s commodity housing purchase requirements – including registered Beijing families and non-Beijing residents with at least two years of continuous social insurance or income tax payments – can now purchase an unlimited number of new or resale properties beyond the fifth ring road. Single adults face the same restrictions as families.
The city is also expanding support for first-home buyers utilizing provident fund loans. Borrowers with a previously repaid housing loan elsewhere will now qualify as first-time buyers, possibly reducing down payments by up to 600,000 yuan and monthly payments by 253 yuan for a 4-million-yuan property with a 1-million-yuan, 30-year loan.
Increased Second-Home Loan Amounts and Standardized Down Payments
Second-home provident fund loan limits are increasing from 600,000 yuan to 1 million yuan. Borrowers meeting green building standards or those with multiple children can access loans up to 1.4 million yuan. The minimum down payment for second-home loans is now standardized at 30 percent, regardless of location.
Market Stabilization and policy Precision
Yan Yuejin, research director at E-house China R&D Institute, stated that these changes, following the July 30 policy meeting, represent a significant move towards stabilizing the market and preventing further decline.He emphasized the focus on achieving a better job-housing balance and highlighted the precision of the implemented measures.
Regional Trend Towards Market Stabilization
Beijing’s move aligns with a broader trend across china, with several regions unveiling plans to stabilize the real estate market in the second half of the year. Jiangsu Province, such as, is prioritizing market stabilization, urban renewal, and increased housing supply. Yunnan Province is also focusing on a balanced approach to real estate development.
