Cities Innovate with Housing Changes

26/09/2017

Image: BWPI

​chinaurbanisationnews

Cities are launching new measures to increase housing availability, promising positive changes to the housing crisis facing the general public.

China's newly built house prices YOY change. (image: Trading Economics)

Shared Ownership

The city of Beijing has recently unveiled a scheme to introduce homes with property rights to be shared by the government and buyers. According to a document issued by the city's housing authorities, individual buyers will be able to buy a share in such homes and still have the full right of use.

However, this dividend is off limits to buys who already own homes under their names, or with records of home transfers. Single people making purchases must be at least 30 years old. And one family can only apply for one home. Buyers enjoy equal rights in household registration and children's schooling as other home owners.

China's new home price increase. (image: Bloomberg)

Increased Tenant Rights

​Similarly, Guangzhou recently released a groundbreaking housing policy, giving tenants and homeowners equal rights to local education resources.

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

The new policy also enables Guangzhou's migrant workers who meet the conditions of a points-based enrollment system to put their children into schools simply by renting a house in the same district. Previously, they had been blocked from enrolling because they didn’t have hukou for the area.

Worldwide home price changes during the last 12 months. (image: mansionglobal.com)

Rental Housing Supply Surge

​Apart from major cities, second-tier cities are also on the move against property speculation.

Ever since March when Xiamen became the first city nationwide to introduce a sales ban, more than 40 cities have followed suit, according to the China Index Academy. Xi'an, Chongqing, Nanchang, Nanning, Changsha, Guiyang, Shijiazhuang and Wuhan have recently tightened housing controls, with most banning home sales within two to three years after purchases.

In Shijiazhuang, houses newly bought will be banned from being sold within five years. In Wuhan, real estate developers were told not to have prejudice against home buyers who plan to use mortgages rather than making full payments.

Meanwhile banks in many major cities have raised the mortgage rates. In Beijing, nearly 20 banks have raised the mortgage rates for first-home purchases by 5 or 10 percent. Some even declined to accept mortgage applications. Banking regulators in cities like Beijing and Shenzhen have also ordered banks to check consumer loans to prevent the money flowing into the property market.

Image: China.com

Up or Down? (August 2017)
​

Sales Prices of Residential Buildings in 70 Medium and Large-sized Cities in August 2017
​
I. Sales Prices of Newly Constructed Residential Buildings (excluding affordable housing).

Month-on-Month price changes: 

• Declined in 18 cities
• Increased in 46 cities
• 6 cities remained at the same level
• The biggest decline was down by 0.7% (Guangzhou)
• The highest increase was 1.1% (Guilin)

Year-on-Year price changes:

• Decreased in 2 cities
• Increased in 68 cities
• 0 cities remained at the same level.
• The biggest decline was down by 1.9% (Shenzhen)
• The highest increase was 16.5% (Changsha)

Image: BWPI

​​II. Sales Prices of Second-Hand Residential Buildings

Month-on-Month price changes: 

• Decreased in 11 cities
• Increased in 54 cities
• 5 cities remained at the same level
• The biggest decline was down by 0.9% (Beijing)
• The highest increase was 1.2% (Wuxi)

Year-on-Year price changes:

• Decreased in 1 cities
• Increased in 69 cities
• 0 cities remained at the same level
• The biggest decline was down by 0.4% (Jinzhou)
• The highest increase was 20.8% (Wuxi)

...social
...housing
...environment
...transportation
...development​

Further information at China Daily, Asia Times and stats.gov 

2017/09/05
Up or Down? (July 2017)

2017/07/25
Up or Down? (June 2017)
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2017/06/29
Up or Down? (May 2017)

2017/05/31
Up or Down? (April 2017)