Bei­jing to help with pur­chase of homes

China Daily (Hong Kong) - - TOP NEWS -

In a new mea­sure to sta­bi­lize the hous­ing mar­ket, Bei­jing is plan­ning to in­tro­duce homes with joint prop­erty rights shared be­tween the gov­ern­ment and buy­ers.

A doc­u­ment pub­lished by l ocal au­thor­i­ties on Thurs­day to so­licit pub­lic opin­ion says that in­di­vid­ual buy­ers will be able to buy a share of a house but still have the full “right of use.”

Chen Zhi, sec­re­tary-gen­eral of Bei­jing’s real es­tate as­so­ci­a­tion, said the new homes are meant to be part of the city’s long-term hous­ing con­trols, mak­ing the sys­tem fairer by al­low­ing more peo­ple to buy their own homes.

The pol­icy has sev­eral re­stric­tions. Buy­ers and their fam­i­lies can­not al­ready own homes in their name. Sin­gle buy­ers must be at least 30 years old, and a fam­ily can ap­ply for only one home.

“The new hous­ing pol­icy clearly tar­gets house­holds that have dif­fi­cul­ties in pur­chas­ing a home,” said Liu Weimin, a re­searcher with the State Coun­cil De­vel­op­ment Re­search Cen­ter.

Deng Liang, a Bei­jing­based lawyer, said the new homes would bet­ter sat­isfy hous­ing de­mand while curb­ing spec­u­la­tion. The gov­ern­ment of­fers sup­port in ar­eas such as land prices and poli­cies, while hold­ing a share of the prop­erty rights, and buy­ers must pay a por­tion of the price ac­cord­ing to their share of the rights.

Five years af­ter pur­chase, own­ers can sell their shares based on mar­ket price, but the gov­ern­ment or its as­signed man­age­ment agen­cies have right of first re­fusal to buy them back.

Zhao Xi­uchi, a pro­fes­sor at the Cap­i­tal Univer­sity of Eco­nom­ics and Busi­ness, said while it is more eco­nom­i­cal to rent, con­sid­er­ing cur­rent high prices, peo­ple still pre­fer to buy.

The new pol­icy will also help ease traf­fic in Bei­jing as peo­ple with lo­cal hukou (res­i­dence per­mits) or those that work within a dis­trict would en­joy pri­or­ity in buy­ing new homes within that dis­trict, ac­cord­ing to Zhao.

Liu Weimin said the pol­icy was key to Bei­jing’s plan to cre­ate a world-class, har­mo­nious and liv­able me­trop­o­lis, as it stip­u­lated that at least 30 per­cent of the homes would be of­fered to “new Bei­jingers”, re­fer­ring to peo­ple with­out a Bei­jing hukou but sta­ble jobs in the city.

China has re­cently taken a set of mea­sures to sta­bi­lize the hous­ing mar­ket and curb spec­u­la­tion. On July 17, au­thor­i­ties in Guangzhou de­cided to give ten­ants and home­own­ers equal rights to lo­cal ed­u­ca­tion re­sources.

In many cities, the right to at­tend schools is lim­ited to home­own­ers’ chil­dren rather than those of ten­ants. Guangzhou is the first top-tier city to grant such rights to ten­ants.

On July 20, a no­tice was is­sued by the Min­istry of Hous­ing and Ur­ban-Ru­ral De­vel­op­ment and other gov­ern­ment de­part­ments say­ing that mea­sures would be taken in cities with net pop­u­la­tion in­flows, in­clud­ing in­creas­ing rental hous­ing sup­plies and set­ting up a gov­ern­ment-backed home rental ser­vice.

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