Financial Services Association, April 28. Today, the Chengdu Real Estate Market Leading Group Office issued the “Notice on Policies and Measures to Further Optimize the Stable and Healthy Development of the Real Estate Market”. Starting April 29, commercial housing projects in Chengdu will no longer carry out notarized house selection and will be sold independently by enterprises; housing transactions throughout the city will no longer review eligibility for home purchases.

The new real estate policy in Chengdu is here! Eligibility to buy a home is no longer being reviewed

The Office of the Leading Group for the Stable and Healthy Development of the Real Estate Market in Chengdu today issued the “Notice on Policies and Measures to Further Optimize the Stable and Healthy Development of the Real Estate Market”, which clearly states that it will systematically promote the balance between supply and demand, scientifically and accurately prepare housing development plans and annual plans, improve the “market+guarantee” housing supply system, comprehensively promote the establishment of a new “people, housing, land and money” linkage mechanism, and focus on building a new model of real estate development.

Implement the “red, orange, and green” three-color management of land supply for commercial construction to reduce the supply of land for residential and commercial services in areas where the ratio of supply and sales of residential and commercial service land is high, as appropriate.

Market players are encouraged to convert their own unoccupied and inefficient commercial offices into affordable rental housing in accordance with relevant requirements, and state-owned enterprises in cities, districts (cities) and counties are encouraged to rent and buy vacant commercial office space for use as offices, public services, and industries, and promote a virtuous cycle in the commercial office housing market.

At the same time, commercial housing projects throughout the city no longer carry out notarized house selection; enterprises sell them independently. For hot projects that have received high social attention, enterprises are encouraged to adopt notarized housing selection and sales. Promote the deepening and implementation of urban real estate financing coordination mechanisms to meet the reasonable financing needs of real estate enterprises with different forms of ownership without discrimination. Support simultaneous sales of parking spaces and residences; rationally set up planning ratios for newly sold residential land.

Furthermore, city-wide housing transactions are no longer being reviewed for eligibility to buy a home. Promote the first-floor overhead floor for public service space, increase the proportion of semi-open spaces such as residential balconies, promote the development of low-density, high-quality housing products in suburban (cities) and counties, and further increase the supply of high-quality housing.

You must know these hot questions

1. What is the background of the introduction of the policy?

In order to adapt to the new situation of major changes in the relationship between supply and demand in the real estate market, implement the main responsibilities of the city, make good use of the policy toolbox, adjust and optimize real estate policies to better meet residents' rigid and improved housing needs, and promote the stable and healthy development of the real estate market, starting from reality, our city researched, formulated and issued the “Notice on Policies and Measures to Further Optimize the Stable and Healthy Development of the Real Estate Market”.

II. What are the measures to promote a balance between supply and demand?

The first is to promote the construction of a “market+guarantee” housing supply system in an integrated manner, comprehensively promote the establishment of a new “people, housing, land and money” linkage mechanism, determine housing needs according to population changes, scientifically arrange land supply and guide the allocation of financial resources according to housing needs, achieve housing arrangement by people, land and housing, accurately determine housing needs, scientifically and accurately prepare annual plans for housing development for 2024 and 2025, and accelerate the construction of a new model for real estate development.

The second is to further implement the “red, orange, and green” three-color management mechanism for land supply for operational construction, and appropriately reduce the supply of land for “red” and “orange” regions with large stocks and long housing sales cycles, and promote a balance between regional supply and demand.

The third is to promote a virtuous cycle in the commercial office housing market, encourage municipal and district state-owned enterprises to rent and buy vacant commercial housing for office, public services, and industrial use; encourage market players to convert their own unoccupied and inefficiently used non-residential housing stock, such as commercial offices, into affordable rental housing.

3. What are the support policies for market players to renovate and operate affordable rental housing, and how exactly can they apply?

Each market entity can apply to the housing and construction department where the project is located and issue a “Affordable Rental Housing Project Certification” after approval by the Territorial Affordable Rental Housing Leading Group. Applicants can enjoy the following support policies with a certificate of certification:

1. During the period of use as affordable rental housing, the nature of land use will not be changed, and the land price will not be paid back.

2. Implement tax benefits for affordable rental housing projects in accordance with the provisions of the “Notice on Improving Tax Policies Related to Housing Rental” (Ministry of Finance, State Administration of Taxation, Ministry of Housing, Urban-Rural Development Notice No. 24 of 2021).

3. Urban infrastructure support fees are exempted for affordable rental housing projects.

4. Support banking financial institutions to provide long-term low-interest loans to various market players developing affordable rental housing in a market-based manner.

5. Support affordable rental housing construction and operation enterprises to finance through the application and issuance of real estate investment trusts (REITS).

6. Prices for water, electricity, and gas for affordable rental housing are implemented in accordance with residents' standards.

7. You can apply for special financial support for investment within the central budget in accordance with the relevant requirements of the “Notice of the National Development and Reform Commission on Issuing (Interim Measures on the Special Administration of Investment in Affordable Rental Housing within the Central Budget”) (Development and Reform Investment Regulations [2021] No. 696).

4. What measures are in place to support real estate financing needs?

Conscientiously implement the Ministry of Housing, Urban-Rural Development, and the General Administration of Financial Supervision's “Notice on Establishing an Urban Real Estate Financing Coordination Mechanism” (Housing Construction (2024) No. 2) and the relevant meeting requirements of the Ministry of Housing, Urban-Rural Development, establish a “white list” system for real estate financing coordination mechanisms to more accurately support the rational financing needs of real estate projects, accelerate the implementation and effectiveness of urban real estate financing coordination mechanisms, and promote compliance enterprise projects “should be promoted”, “should be advanced” and “fully funded” to support the construction and delivery of real estate projects to protect the legitimate rights and interests of buyers.

5. Why support simultaneous sales of parking spaces and residences?

Supporting simultaneous sales of corresponding underground motor vehicle parking spaces during pre-sale (current sale) of commercial homes is conducive to further facilitating the sales management of motor vehicle parking spaces for residential projects, and can better meet the needs of buyers to simultaneously purchase motor vehicle parking spaces when purchasing commercial housing.

6. How to understand that commercial housing projects throughout the city can no longer be notarized, and enterprises are encouraged to notarize projects that have received a high level of attention?

Notarization will no longer be implemented. On the one hand, it can improve the convenience of the public to buy homes, and pre-examination codes are no longer required; on the other hand, it can improve the efficiency of commercial housing sales and shorten the time cycle from obtaining a pre-sale license for the project to the buyer's online signing and filing.

At the same time, for hot projects that have received high market attention, in order to ensure the fairness, impartiality and openness of the sales process, after investigation and judgment by the territorial government, enterprises are encouraged to use a public swing method with the participation of notaries throughout the process. Violations and irregularities that occur during the sales process are resolutely and seriously investigated and punished.

7. How to adjust the city's housing purchase restriction policy?

Housing transactions throughout the city will no longer review housing purchase conditions such as household registration and social security, and will no longer limit the number of units purchased.

8. What measures are in place to increase the supply of high-quality housing?

In order to adapt to the new situation of major changes in the relationship between real estate supply and demand and the new stage of housing transformation from “whether there is” to “good or not”, to meet people's demand for high-quality housing, focus on increasing public service space, comprehensively promoting the first floor, increasing the half-open residential space ratio, encouraging green, low-carbon, technological buildings, and promoting the development of low-density, high-quality housing products in suburban (cities) and counties, and effectively enhance people's sense of attainment and happiness.