China's Zhuhai to Unveil Another Round of New Housing Policies

Investment and Development Zone Unveils Four Measures to Bolster Housing Market

The government of China's Zhuhai has implemented various measures to stimulate the property market in the area. On February 23, 2023, the city's Investment and Development Zone announced four new guidelines aimed at boosting housing demand and promoting the stable development of the property market.

Incentives for New Home Purchases and Home Renovations

One of the key measures is a subsidy of up to 100,000 yuan (approx. US$14,500) for the purchase of new homes, targeting first-time homebuyers and those purchasing second homes for improvement purposes. This subsidy is applicable to both commercial and affordable housing units and is expected to provide significant support to potential homebuyers and boost demand in the housing market.

Financial Support for Developers

To encourage property development and construction, the government has introduced financial support measures for real estate developers. These include extending the repayment period for land acquisition loans, reducing the down payment ratio for land purchases, and providing subsidies for the construction of affordable housing units. These measures aim to alleviate the financial burden on developers and stimulate the development of new housing projects, thereby increasing the supply of housing units in the market.

Tax Incentives for Homebuyers

The government is also offering tax incentives to further encourage home purchases. Individuals who purchase new homes can enjoy a reduction in stamp duty, which is a tax levied on the transfer of property ownership. This tax reduction is applicable to both residential and commercial properties and is expected to provide financial savings for homebuyers, making homeownership more affordable and attractive.

Streamlined Approval Process for Housing Projects

To expedite the development and construction of housing projects, the government has streamlined the approval process for housing developments. This has involved simplifying the approval procedures, reducing the time required for approvals, and enhancing the efficiency of the overall approval process. By reducing bureaucratic hurdles, this measure aims to accelerate the delivery of new housing units to the market, meeting the growing demand for housing in Zhuhai.