Beijing Municipality, Circular on the Thorough Implementation of the State Council's Document on Determined Suppression of the Exceedingly Rapid Rise of Certain Urban Housing Prices

Issued: April 30 2010

Main contents: According to the Circular, financial institutions shall, according to relevant provisions, determine the second unit of premises based on data from the municipality's system for transfer of housing ownership. Commercial banks shall suspend the grant of mortgage loans for purchasing the third or more unit of residential premises according to the risk status, and for non-local residents who fail to provide at least one year's proof of local tax payment or social security contribution. Beginning from the issuance of this Circular, families may make only one new purchase of a unit of commodity residential premises in the municipality provisionally. Where a taxpayer is unable to provide the original voucher for the purchase of premises and other complete and accurate tax receipts at the time of tax payment, the tax authority may obtain the relevant information from the department of housing and urban-rural development or determine the tax levy method and tax payable according to the relevant laws and regulations (Article 2).

In 2010, land use for policy-type residential premises and small- and medium-sized ordinary commodity residential premises shall be no less than 70% of total land supply for the construction of residential premises, among which land supply for construction of policy-type residential premises shall be no less than 50% of the total land supply for residential premises in Beijing. Land grant contracts shall include particulars such as the sales prices, number of units, floor area of premises, ratio of construction of policy-type residential premises as well as the time of commencement and completion of construction, and the penalty clauses for breach of contract (Article 4).