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shanghai once again implemented comprehensive policies to optimize and adjust real estate market policies to respond to market housing demand. on the evening of september 29, the shanghai municipal housing and urban-rural development management committee, the municipal housing administration bureau, the municipal planning resources bureau, and the municipal taxation bureau jointly issued the "notice on further optimizing policies and measures for the city's real estate market" (hereinafter referred to as " notice"), proposing seven policy measures including adjusting housing purchase restriction policies, optimizing housing credit, and adjusting housing taxes. the "notice" will come into effect on october 1, 2024.

it is worth noting that this new policy comes only four months after the "shanghai nine articles" were introduced. why is shanghai taking multiple measures again? what signal does the new policy send? which groups of people will benefit from the various adjustment policies? with these focus issues of concern to citizens, reporters from liberation daily and shangguan news interviewed heads of relevant departments, heads of some real estate development companies, heads of intermediary agencies, as well as experts and scholars for interpretation.

seven measures reflect comprehensive policies

in terms of adjusting housing purchase restrictions, the "notice" clearly states:

first, for families and single persons who are not registered residents of this city and purchase housing outside the outer ring road, the number of years required to pay social insurance or personal income tax for the purchase of a house will be adjusted to one year or more of continuous payment before the date of purchase.

second, non-local resident families who hold a "shanghai residence permit" and whose points reach the standard value and have paid social insurance or personal income tax in this city for three years or more will enjoy the same benefits as shanghai resident families in purchasing housing units. house purchase benefits.

third, a more differentiated house purchase policy will be implemented in the lingang new area of ​​the free trade zone. for groups who work in lingang and have job-housing separation, on the basis of the existing housing purchase restriction policy, they can purchase an additional 1 house in the new area. provide housing and promote work-housing balance.

in terms of optimizing housing credit, the "notice" proposes:

first, implement the national policy on lowering existing mortgage interest rates and guide commercial banks to steadily and orderly reduce existing mortgage interest rates to close to the new loan interest rates to further reduce the mortgage interest expenses of home buyers.

second, the minimum down payment ratio for commercial personal housing loans for first homes is adjusted to no less than 15%. the minimum down payment ratio for commercial personal housing loans for second homes is adjusted to no less than 25%; the minimum down payment ratio for second home loans in areas with differentiated policies is adjusted to no less than 20%. the minimum down payment ratio for housing provident fund second home loans will be adjusted accordingly.

in terms of adjusting housing taxes, the "notice" proposes:

first, adjust the value-added tax collection and exemption period from 5 years to 2 years.

second, in accordance with national work arrangements, ordinary housing standards and non-ordinary housing standards should be canceled in a timely manner to better meet the demand for improved housing.

better meet rigid and improved housing needs

how has the shanghai real estate market responded since the implementation of the "shanghai nine regulations" four months ago? why is a new policy introduced again this time?

based on data from multiple real estate agencies, since the "shanghai nine regulations" were officially implemented on may 28, the policy effects have gradually emerged, the market as a whole has maintained a good upward trend, transaction activity has increased significantly, and the transaction volume of first-hand and second-hand houses has both increased. increased, and transaction prices were generally stable.

taking second-hand housing as an example, from june to august this year, the number of transactions in shanghai exceeded 15,000 "boost and bust lines" for three consecutive months, showing a momentum of "not slowing down in the off-season". overall, the "shanghai nine articles" have a significant stabilizing effect on shanghai's real estate market, effectively consolidating the healthy development of the market. the property market continues to lead the country in performance, showing strong market resilience and vitality.

the "decision" of the third plenary session of the 20th central committee of the communist party of china clearly stated that it is necessary to "accelerate the construction of a new model of real estate development...fully give each city government autonomy in regulating the real estate market, implement city-specific policies, and allow relevant cities to cancel or reduce housing purchase restriction policies, cancel standards for ordinary residential and non-ordinary residential houses”. on september 26, the politburo meeting of the central committee once again made it clear that "we must promote the real estate market to stop falling and stabilize... respond to the concerns of the masses, adjust housing purchase restriction policies, reduce existing mortgage interest rates, speed up the improvement of land, fiscal and taxation, financial and other policies, and promote the construction of real estate develop new models”. at the same time, relevant departments have noticed that since the introduction of the "shanghai nine regulations", many citizens have expressed the hope of further optimizing real estate control policies.

the purpose of this new policy is to thoroughly implement the latest decisions and arrangements of the party central committee and the state council, respond to the concerns of the masses, implement city-specific policies, better meet residents' rigid housing needs and diversified improvement housing needs, and promote the stable and healthy development of the real estate market.

focus on purchase restrictions, finance and taxation areas

what are the considerations for shanghai’s optimization and adjustment of real estate market policies and measures this time? what groups of people are mainly covered?

in line with the requirements of the party central committee and the state council, relevant departments continue to strengthen policy pre-research reserves, timely enrich the policy reserve toolbox, promote the superposition of incremental policies and existing policies, promote collaborative linkage in the policy implementation process, and amplify the combined effect of policies.

since the implementation of the "shanghai nine regulations", relevant departments have closely monitored market data, and at the same time worked with relevant departments to conduct in-depth analysis and judgment of market trends. they have widely listened to the opinions and suggestions of experts, scholars, market entities, etc., and formed a series of policy measures.

this new policy focuses on three aspects: purchase restrictions, finance, and fiscal and taxation, reflecting the overall and systematic nature. for example: in terms of housing purchase restriction policies, based on serving stable housing and promoting work-housing balance, the number of years for non-shanghai residents to purchase houses and pay social security has been shortened. in terms of housing credit policies, the minimum down payment ratio and first home loan have been reduced to 15% to meet the reasonable demand for home purchase loans. in terms of taxation, the value-added tax collection and exemption period is adjusted from 5 years to 2 years.

cui guangcan, director of the real estate and urban development research center of shanghai normal university, said that this policy optimization mainly reflects three considerations. focus on affordable housing, start from the demand side, promote job-housing balance, and further support the demand for improved housing; implement classified policies, such as on the demand side, based on serving affordable housing, differentiate and optimize housing purchase restriction policies in different regions according to regional market characteristics, and shorten non-shanghai the number of years that chinese nationals need to pay social security or personal income tax when buying a house. on the credit side, the minimum down payment ratio for second home loans is differentiated. precise policies should be implemented, such as implementing more differentiated home purchase policies for groups who work in lingang and are separated from work and housing.

adjustment of social security payment period for non-shanghai residents

in this adjustment to the housing purchase restriction policy, the conditions for purchasing houses for non-local residents and single persons have been relaxed. compared with the previous policy, what are the main aspects of this adjustment?

young talents from all over the country are an important component and development driver of the city of shanghai. in response to the housing needs of this group of people, shanghai continues to optimize house purchase rules so that these young talents can live and work in peace and contentment in shanghai, creating a "strong magnetic field" for talents.

therefore, a very critical point in this optimization and adjustment of shanghai's real estate policy is to adjust the social security payment period for non-shanghai residents.

the previous "shanghai nine regulations" clarified that non-shanghai residents who purchase houses in shanghai must pay social security or personal income taxes in shanghai for three years or more; among them, if they are purchased by non-shanghai talents in key areas such as new cities and north-south transformation, only it is necessary to pay continuously for 2 years or more. non-shanghai talents purchasing houses in the lingang new area of ​​the free trade zone need to pay continuously for 1 year or more.

this adjustment policy covers all the above groups, that is, all non-shanghai resident families and single persons. if you buy a house outside the outer ring road, the number of years you need to pay social insurance or personal income tax in shanghai will be adjusted to one continuous year or more before the date of purchase.

data shows that non-shanghai residents have a large demand for housing outside the outer ring. taking the newly built commercial housing market as an example, since the implementation of the "nine shanghai measures", more than 20% of home buyers are non-shanghai residents, and 60% of this group the above purchases are new houses outside the outer ring road, so this policy meets the needs of non-shanghai home buyers.

pay attention to people with residence permits

this new policy also covers people holding "shanghai residence permit". for them, what conditions must be met to enjoy the new policy? what are the specific changes?

in 2002, shanghai began to implement a residence permit system. since its establishment, this system has been designed to encourage domestic and foreign talents to come to shanghai for employment, thereby improving the city's comprehensive competitiveness. this new policy is aimed at citizens holding residence permits in shanghai. by intensifying improvements in housing, all kinds of talents who have contributed to shanghai can live and work in shanghai in peace and contentment.

according to the "shanghai residence permit points management measures", shanghai implements a residence permit points system. points are awarded to holders who legally and stably live and are legally and stably employed in shanghai. those who reach the standard points can enjoy children's education and social insurance. corresponding public service treatment. the total standard score is 120 points.

this time, shanghai has implemented preferential and supportive policies for residence permits, giving residence permits more rights to purchase houses. if a non-shanghai resident family (non-single person) holding a "shanghai residence permit" reaches 120 points and has paid social insurance or personal income tax in shanghai for 3 years or more, the number of housing units purchased in shanghai will be the same as that of shanghai residents. families with registered residents enjoy the same treatment for buying houses, that is, families with no children or one child can buy two houses, and families with two or more children can buy three houses.

for non-shanghai households holding a "shanghai residence permit", on the premise of meeting the standard score, there are still some people who need to wait up to 7 years to "transfer residence" (settling in shanghai). for this group of people, they can now enjoy the perks of buying a house after settling in shanghai up to 4 years in advance. this policy adjustment will release the improved housing needs of this group of people and help them realize their ideal of settling down earlier.

guide the job-housing balance in lingang new area

the new deal has also adjusted the purchase restriction policy in lingang new area. what groups of people are mainly covered? are there any changes to purchase restrictions?

lu wenxi, an analyst at shanghai centaline real estate, said that the focus of this measure is on "separation of jobs and housing", which is closely related to the reform orientation of the lingang new area and will help better promote the integration of industry and city and the work orientation of job-housing balance.

for people who work in the lingang new area but live outside the new area, if they have purchased a house in other areas of shanghai, reached the upper limit of the current purchase restriction policy, and indeed live outside the new area, no matter how many houses they have previously owned, according to this new policy will allow you to purchase an additional house in the lingang new area to reduce commuting costs.

commercial loan down payment ratio continues to decrease

this new policy also mentions optimizing housing credit policies. what specific adjustments have been made? what groups of people are covered? how strong is the policy?

this optimization policy further reduces the down payment ratio of commercial personal housing loans, and greatly reduces the threshold and down payment cost of home purchase.

after the implementation of the new policy, the minimum down payment ratio for commercial personal housing loans for the first home has been reduced from 20% to 15%, with a cumulative decrease of 5 percentage points; the minimum down payment ratio for commercial personal housing loans for the second home has been reduced from 35% to 25%. the cumulative decrease is 10 percentage points, and the differentiated policy area (the entire lingang new area and the six administrative regions of jiading, qingpu, songjiang, fengxian, baoshan, and jinshan) is reduced from 30% to 20%, with a cumulative decrease of 10 percentage points.

the following table calculates the total subscription price of commercial housing with a total subscription price of 5 million yuan and 10 million yuan. it can be seen that both types of home purchases enjoy very obvious down payment and cost reduction effects.

down payment changes that reduce down payment ratio (10,000 yuan)

canceling standards for common and non-common residences in a timely manner

in terms of taxation, what other policies can reduce residents’ transaction costs?

yan yuejin, deputy director of shanghai yiju real estate research institute, said that this time shanghai has made it clear that it will timely cancel the ordinary housing standard policy in accordance with the national work deployment. this is related to the market characteristics of real estate from "have or not" to "good or not". the value-added tax and personal tax policies linked to ordinary housing standards are expected to be adjusted, thereby achieving a burden-reducing effect. it should be noted that the two types of taxes have little to do with "buying", but have a greater relationship with "selling", that is, they have a significant effect on landlords in reducing the cost of selling houses.

some experts preliminarily predict that good tax reduction effects are expected for the sale of houses with a slightly shorter holding period, the sale of non-ordinary houses held for more than 5 years, and the sale of houses with an area of ​​more than 144 square meters.

possible changes in the value-added tax rate after the withdrawal of the general residence standard (combined with the "5 to 2" policy)

in 2021, eight departments including the shanghai municipal housing and construction commission and the housing authority jointly issued the "opinions on promoting the stable and healthy development of the city's real estate market". at that time, the policy was clear, adjusting the value-added tax collection and exemption period, and increasing the value-added tax collection and exemption period for individual external sales of housing from 2 years to 5 years. this adjustment adjusts the value-added tax exemption period for personal external sales of housing from 5 years to 2 years, which will better support the demand for improved housing by reducing the tax cost in the transaction process.