Tongling city in East China's Anhui province enacted "Suggestions on promoting the continuous development of property market" on May 1, 2014. What does it mean to the property market of Tongling and how will it promote further development of the sector?
Well-timed policy on property market
In the past decade, Housing and Urban-Rural Development Committee of Tongling strictly followed the real estate policies set by the central government and constructed housing projects to perfect the supply system. Now is the right time for the municipal government to put forward policies to prepare the market for a better future.
Timely adjustment of government's supply
With the demand for prefabricated houses increasing, the city government will start to purchase properties to meet the shortfall. At the same time, it will fine-tune house levy and compensation laws to allow more choices to those forced to move out.
Purchasers will receive tax subsidies
Tax subsidies have received the most attention. According to an official at the municipal Ministry of Treasury, from May 1 to December 31, 2014, people who buy their first house in Tongling will enjoy tax subsidy of 1 percent. However, the subsidy will be given on the condition that the total area should not exceed 144 square meters.
Loosening the loan criteria
This policy mainly includes three aspects. The first is to relax the restriction on the application criteria, allowing staff to contribute to the housing provident fund for only three continuous months instead of six. The second is to increase the maximum loan amount from 250,000 yuan to 300,000 yuan. The third is to decrease the down-payment ratio from 30 to 20 percent for purchasers buying their first house.
Lifting policy restrictions on second loan
For families that want to purchase another house, the down payment cannot be lower than 40 percent of the house price. On the other hand, families that purchase properties that exceed the area limit set by the authorities, the down payment cannot be lower than 60 percent of the price.
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