Local housing authorities in Beijing propose ‘one district, one policy’ to spur property sales
- Municipal authorities have come up with a proposal to help families and workers in Beijing’s southwestern district of Fangshan get on the property ladder
- Housing transactions in Fangshan sank nearly 50 per cent last year, compared with a 25 per cent decline across Beijing, according to data from the China Index Academy
The “one district, one policy” proposal by the Beijing Municipal Commission of Housing and Urban-Rural Development aims to assist families with multiple children and those working in the southwestern district of Fangshan to buy homes there, according to a statement from the commission on Monday. The authorities plan to submit the proposal, whose details have not been disclosed, for approval from more government bodies.
“The sentiment in Beijing’s housing market is showing signs of decline, and the expectation of policy fine-tuning is increasing,” said the China Index Academy (CIA), one of the mainland’s largest property consultancies, in a note on Wednesday. “If the ‘one district, one policy’ initiative is officially implemented, it is expected to provide a reference for other major cities and help further revive sentiment in the country’s property market.”
Beijing has the strictest housing policies in China and rarely sees any easing measures. Each household registered in the city can only buy a maximum of two properties and the down payment ratio is the highest nationwide to curb speculation. Homebuyers have to pay 35 per cent upfront for their first homes, and as much as 80 per cent for the second unit. Shanghai comes next, with as much as 70 per cent upfront payment for second homes.
The local authorities’ proposal comes amid a decline in housing deal activity in Fangshan, which fared particularly poorly among all districts in Beijing last year. New home sales in the district, which is about two hours’ commute to the city’s business and downtown area, sank 48 per cent year on year, higher than the 25 per cent decrease recorded citywide, according to data from CIA.