Introduction: Shenzhen's property market has ushered in a wave of major adjustments, and four new policies for the property market that attracted national attention were announced on July 3. The implementation of these policies will have a profound impact on many fields, such as public rental housing, affordable rental housing and shared ownership housing. Among them, the price, area, sales method and other aspects have been clearly regulated, aiming to provide more affordable housing to meet the needs of different families. This article will give you a detailed explanation of this series of policies and an in-depth look at their potential impact.
Shenzhen, July 3, 2023, the property market has made a comeback.
On this day, the Shenzhen Housing and Urban-Rural Development Bureau announced four blockbuster property market policies, which completely changed the urban housing pattern. The implementation of these policies will have a profound impact on many fields, such as public rental housing, affordable rental housing and shared ownership housing.
To understand the importance of these policies, it is first necessary to clarify the content and purpose of these four regulations. These regulations regulate a number of key factors, including the availability of housing, application conditions, price standards, area requirements and sales methods, with the aim of providing more affordable housing to meet the needs of different groups of residents.
This series of policies will be officially implemented on August 1.
Price division of public rental housing
Among the many policies, the price issue has attracted much market attention. The Measures for the Administration of Public Rental Housing clearly state that the rent of households that meet the property limit standards for income from public rental housing will be 30% of the market reference rent. The special hardship cases, families with minimum livelihood support and marginal families with minimum livelihood support will enjoy lower rent levels, only 3% of the market reference rent. This policy will effectively reduce the rental burden of low-income families and is expected to improve their quality of life.
Identify the three main categories of affordable housing
Among the four regulations, the Shenzhen Administrative Measures for the Planning and Construction of Affordable Housing is known as the "General Principles", which clearly defines three categories of affordable housing: public rental housing, affordable rental housing and co-ownership housing.
Public rental housing is a policy preferential policy provided by the government, and the rent and construction standards are restricted, and it is aimed at residents with household registration with housing difficulties and front-line workers. Affordable rental housing mainly provides policy support for new citizens, young people and various talents, and the rent is relatively low. As for co-ownership housing, the type, price and use rights are clearly restricted, and the government and buyers share the property rights.
In addition, the regulations also encourage enterprises, financial institutions and social organizations to participate in the investment and financing of affordable housing projects, and support the issuance of real estate investment trusts and asset-backed securities in affordable rental housing projects. For violations by development and construction units, the regulations also specify legal liabilities, including fines.
Price differentiation and area standards
In terms of price, these policies adopt differentiated rental and sale prices. Rent and sales prices vary depending on the type of housing and the object of protection. For example, rents for affordable rental housing are set at 60 per cent of the market reference rent, while the average sales price of condominium projects is 50 per cent of the market reference price.
This differentiated pricing helps to better meet the needs of different groups of residents.
In addition, there are detailed regulations in terms of area standards. Different types of housing have different floor area restrictions to ensure the quality and suitability of the housing. For example, the floor area of public rental housing is mainly less than 60 square meters, while the area limit of newly constructed affordable rental housing is less than 70 square meters, and the floor area of co-ownership housing is mainly less than 90 square meters.
These regulations also reflect the government's good intentions to increase the utilization rate of housing through reasonable area restrictions and ensure that more families can enjoy suitable housing.
Rental standards for public rental housing
In terms of allocating rents to public rental housing, the regulations specify the floor area standard. Depending on the size of the household, the floor area also varies. The built-up area for single residents does not exceed 35 square meters, and for a family of 2 people does not exceed 50 square meters, while
The floor area of families with more than 3 people is mainly no more than 60 square meters. For houses with a construction area of more than 70 square meters, the policy will give priority to allocating rent to families with more than 5 people, and according to supply and demand, it can also consider allocating rent to 4-person families to better meet the actual needs of families.
Size standards and sales methods for condominiums
The size standard for condominium housing projects is also determined according to the size of the household, with a floor area of about 65 square meters for families of less than three or more people or single residents, and about 85 square meters for families with more than four people. For listings with a construction area of about 85 square meters, the policy will also consider selling to families of 3 people according to the actual situation, and the specific details will be specified in the placement notice.
Special attention should be paid to the fact that condominiums are in the form of closed circulation. After 5 years after signing the sales contract, if the buyer needs to transfer the purchased co-ownership house, he can apply to the housing security implementation agency to transfer it to eligible objects, and the transfer price will be determined by negotiation between the two parties.
This provision helps protect the rights and interests of home buyers, and also promotes the stability of the housing market.
epilogue
Taken together, Shenzhen's four new policies for the property market are intended to provide citizens with more affordable housing to meet the needs of different resident groups. Through differentiated pricing policies, clear area standards and diversified sales methods, the government is committed to creating a fairer, healthier and more sustainable housing market. The implementation of this series of policies will have a profound impact on the Shenzhen property market, which is expected to improve the quality and quantity of housing supply and provide a better living environment for the general public.