China News Service, January 21. According to the official Weibo news of the Shanghai Municipal Government Information Office, with the approval of the Shanghai Municipal Government, 8 departments including the Shanghai Municipal Commission of Housing and Urban-Rural Development and the Municipal Housing Management Bureau jointly issued the "Opinions on Promoting the Stable and Healthy Development of the City’s Real Estate Market" "(Hereinafter referred to as the "Opinions"), effective from January 22, 2021.

The "Opinions" are clear and strictly implement the housing purchase restriction policy.

For couples who purchase commercial housing within 3 years of their divorce, the number of housing units owned by them shall be calculated based on the total number of households before the divorce.

  The "Opinions" require strict implementation of differentiated housing credit policies.

Implement the concentration management of real estate loans, strengthen the prudent management of personal housing loans, and guide commercial banks to strictly control the pace and growth of personal housing loans to prevent surprise loans.

Guide commercial banks to further strengthen the management of loan review, and intensify the verification of the source of down payment funds and debt-to-income ratio of home buyers.

Strictly prevent credit loans, consumer loans, business loans and other funds from flowing into the real estate market in violation of regulations.

  The "Opinions" stipulate that the VAT exemption period should be adjusted.

If an individual purchases less than 5 years of housing for external sales, the full amount of value-added tax will be levied; if an individual purchases more than 5 years (including 5 years) of non-ordinary housing for external sales, the difference between the sales income and the purchase price of the housing Value-added tax is levied; individuals who purchase ordinary houses for more than 5 years (including 5 years) are exempt from value-added tax.

  The "Opinions" emphasized strict management of commercial housing sales.

Strictly manage the filing and management of new commercial housing sales plans.

Strictly implement various management systems such as the "one price clear" and "real name system" for commercial housing sales.

Improve the housing selection system of newly-built commercial housing by notarization lottery, and give priority to satisfying the self-occupied housing needs of "family without housing".

Strengthen the supervision of pre-sale funds to protect the legitimate rights and interests of buyers.

  The "Opinions" propose to strictly regulate the operating order of the real estate market.

Strengthen the supervision of real estate development enterprises, sales agency enterprises and real estate brokerage agencies, and carry out special rectification of the real estate market order.

Strengthen joint rectification and law enforcement, form a joint law enforcement force, and seriously investigate and deal with illegal activities such as cover-up and reluctance to sell, price violations, false advertisements, artificially creating market tensions, and inducing evasion of regulatory policies.

  According to the "Opinions", Shanghai will also improve the management of the land market, optimize the land supply structure, and increase the supply of land for commercial housing, especially around the suburban rail transit stations and the five new cities (Nanhui, Songjiang, Jiading, Qingpu, Fengxian New Town) Supply intensity; adhere to the real estate and land linkage mechanism, guide enterprises to rationally acquire land, and stabilize land prices.

Strengthen real estate market monitoring, correctly interpret real estate market control policies and measures, stabilize market expectations, and guide reasonable housing consumption; increase the investigation and punishment of fabricated rumors to disrupt market order and spread false information to mislead market expectations.

  The "Opinions" stated that the Shanghai Municipal Party Committee and Municipal Government have always paid great attention to housing and people’s livelihoods, resolutely implement the main responsibility of the city, based on the general public’s liveability, and overall planning for housing development during the “14th Five-Year Plan”, which is promoting the steady and healthy development of the real estate market. At the same time, by intensifying the development of rental housing, increasing the effective supply of rental housing, improving the long-term rental policy, stabilizing the supply of affordable housing, and meeting the residential needs of citizens through multiple channels; and by accelerating the transformation of old districts, urban villages, and existing multi-storey houses. The installation of elevators in houses and the construction of beautiful homes in residential quarters have taken multiple measures to improve the quality of residents’ living.

Attached:

Opinions on promoting the stable and healthy development of the city’s real estate market

Shanghai Construction Housing Management Union (2021) No. 48

  All relevant units:

  In order to thoroughly implement the state's requirements for implementing policies for different cities and "one city, one policy" for real estate market regulation and control, firmly adhere to the positioning of houses for living, not for speculation, build and improve a long-term real estate mechanism, and strive to stabilize land prices , Stabilize housing prices, stabilize expectations, insist on simultaneous rental and purchase, increase housing supply, adjust housing demand, strengthen market supervision, and promote the stable and healthy development of the city’s real estate market. With the consent of the municipal government, the following opinions are hereby provided:

  1. Further play the role of joint meetings.

Give full play to the role of the city’s joint meeting platform for promoting the healthy development of the real estate market, guide, coordinate, and promote the city’s real estate market supervision work, implement departmental management responsibilities, enhance linkage coordination, strengthen information exchange, strengthen policy implementation, and improve policy implementation effects.

  2. Improve land market management.

Optimize the land supply structure and increase the supply of land for commercial housing, especially in the five major new cities (Nanhui, Songjiang, Jiading, Qingpu, Fengxian New City) around the suburban rail transit stations.

Adhere to the linkage mechanism of real estate and land, guide enterprises to acquire land rationally, and stabilize land prices.

  3. Strictly implement the housing purchase restriction policy.

If the couple is divorced, if either party purchases commercial housing within 3 years from the date of divorce, the number of housing units owned by the couple shall be calculated based on the total number of units in the family before the divorce.

  4. Adjust the VAT exemption period.

Increase the period of time for exemption of value-added tax on personal sales of houses from 2 years to 5 years.

  5. Strictly implement differentiated housing credit policies.

Implement the concentration management of real estate loans, strengthen the prudent management of personal housing loans, and guide commercial banks to strictly control the pace and growth of personal housing loans to prevent surprise loans.

Guide commercial banks to further strengthen the management of loan review, and intensify the verification of the source of down payment funds and debt-to-income ratio of home buyers.

Strictly prevent credit loans, consumer loans, business loans and other funds from flowing into the real estate market in violation of regulations.

  6. Strictly manage the sale of commercial housing.

Strictly manage the filing and management of new commercial housing sales plans.

Strictly implement various management systems such as the "one price clear" and "real name system" for commercial housing sales.

Improve the housing selection system of newly-built commercial housing by notarization lottery, and give priority to satisfying the self-occupied housing needs of "family without housing".

Strengthen the supervision of pre-sale funds to protect the legitimate rights and interests of buyers.

  7. Strictly regulate the operating order of the real estate market.

Strengthen the supervision of real estate development enterprises, sales agency enterprises and real estate brokerage agencies, and carry out special rectification of the real estate market order.

Strengthen joint rectification and law enforcement, form a joint law enforcement force, and seriously investigate and deal with illegal activities such as cover-up and reluctance to sell, price violations, false advertisements, artificially creating market tensions, and inducing evasion of regulatory policies.

  8. Insist on both hire and purchase.

Further improve the housing leasing system and expand the coverage of affordable rental housing.

Through multiple methods such as new construction, construction, renovation, etc., multiple channels and multiple entities accelerate the formation of an effective supply of rental housing.

Improve supporting policies for the development of rental housing and standardize the order of the housing rental market.

  9. Accelerate the promotion of urban renewal and transformation projects such as the transformation of old districts and the transformation of "village in the city".

Accelerate the transformation of houses below the second-level old li in the central urban area, and actively carry out the transformation of "village in the city" to ensure the supply of housing for expropriation and resettlement.

Accelerate the renewal and transformation of old houses, increase efforts to install elevators in existing residences, start the implementation of the new three-year action plan for the construction of "beautiful homes" in residential quarters, improve the living conditions and environmental quality of the people through multiple channels, and effectively enhance their housing quality.

  10. Strengthen policy publicity.

Strengthen real estate market monitoring, correctly interpret real estate market regulation policies and measures, stabilize market expectations, and guide reasonable housing consumption.

Increase the investigation and punishment of acts such as fabricating rumors to disrupt market order and spreading false information to mislead market expectations.

  This opinion will take effect on January 22, 2021.