State Council, Circular on Issues Relevant to Improving the Regulation and Control of the Real Property Market

国务院办公厅关于进一步做好房地产市场调控工作有关问题的通知

State Council's eight articles to further curb property prices.

Clp Reference: 4110/11.01.26 Promulgated: 2011-01-26

Issued: January 26 2011


Main contents: In 2011, people's governments of all cities shall, in accordance with the local economic development targets, growth rate of per-capita disposable income, and residents' housing affordability, reasonably determine the local annual targets for price control of newly-built residential premises, and announce the same to the public per quarter (Article 1). The business tax policy for assignment of individuals' residential premises shall be adjusted: where an individual sells his/her residential premises purchased for less than five years, business tax shall be levied on the full revenue derived from the property sale (Article 3).

The total planned land supply for commodity residential premises this year shall, in principle, be no less than the average actual annual supply in the preceding two years. Entities and individuals that participate in competitive bidding of land must state the source of funds and provide the relevant supporting documents. Where a party fails to obtain a permit for construction work to commence construction after receiving the land for real property development for more than two years, the government shall recover the leasehold and impose a fine for leaving the land idle for one year or more. Where the investment in real property development (excluding the land price) fails to reach 25%, the land or the land development project stipulated in contract may not be assigned in any manner (Article 5).

Where a family purchases a second unit of residential premises on mortgage loan, the ratio of down payment shall be no less than 60%, and the mortgage interest rate shall be no less than 1.1 times the benchmark interest rate (Article 4). In principle, local resident families with household registration that already own one unit of residential premises, and non-resident families without household registration that are able to provide proof of local tax payment or social insurance contribution for a certain number of years may purchase only one unit of residential premises (including newly-built commodity residential premises and second-hand residential premises). Local resident families with household registration that already own at least two units of residential premises, and non-resident families without household registration that own at least one unit of residential premises or that are unable to provide proof of local tax payment or social insurance contribution for a certain number of years may not, for the time being, purchase any property in the local administrative area (Article 6).

clp reference:4110/11.01.26promulgated:2011-01-26

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