General Office of the State Council, Circular on Continuing to Duly Regulate and Control the Real Property Market

Where individual income tax is payable in accordance with regulations on the sale of one's own residential premises and the original value of the premises can be verified by virtue of tax levy, premises registration and other such past information, such tax shall be strictly imposed, in accordance with the law, at the rate of 20% of the proceeds from the assignment (Article 2).

A reasonable and stable scale of supply of land for residential premises will be maintained. In principle, the total supply of land for housing in 2013 shall not be lower than the average actual supply during the past five years (Article 3).

Related legislation: Circular on Issues Relevant to Improving the Regulation and Control of the Real Property Market, Jan 26 2011, CLP 2011 No.2 p.37; Circular on Further Regulating the Administration of Premises Purchases by Overseas Organisations and Individuals, Nov 4 2010, CLP 2010 No.10 p.50; Circular on Specifying the Criteria for Defining the Second Unit of Residential Premises for Commercial Personal Residential Mortgage Loan Purposes, May 26 2010, CLP 2010 No.6 p.41; Circular on Determined Suppression of the Exceedingly Rapid Rise of Certain Urban Housing Prices, Apr 17 2010, CLP 2010 No.4 p.45; and Circular on Promoting the Steady and Healthy Development of the Real Property Market, Jan 7 2010, CLP 2010 No.3 p.31

Issued: February 26 2013

Main contents: Municipalities directly under the central government, cities with independent development plans and provincial capitals (other than Lhasa) shall formulate annual price control targets for newly constructed commodity residential premises (excluding low-income residential premises) for their region in accordance with the principle of maintaining essentially stable housing prices (Article 1).

The area restricting housing purchases shall cover all of the administrative divisions of the city. The type of residential premises the purchase of which is restricted shall include all newly constructed commodity residential premises and previously owned residential premises. The review of premises purchase qualifications shall be brought forward to before execution of the premises purchase contract (subscription). Sale of premises in the local administrative division to households without local registered permanent residence that own one or more residential premises and households without local registered permanent residence that are unable to provide proof of local tax payment or proof of payment of social insurance contributions for a certain consecutive number of years shall be suspended.

In cities where housing prices are increasing excessively rapidly, the local (sub-)branch of the People's Bank of China may, in accordance with the newly constructed commodity residential premises price control targets and policy requirements of the municipal people's government, further increase the percentage of the down payment for, and the interest rate on, loans for the purchase of a second unit of residential premises.

Where individual income tax is payable in accordance with regulations on the sale of one's own residential premises and the original value of the premises can be verified by virtue of tax levy, premises registration and other such past information, such tax shall be strictly imposed, in accordance with the law, at the rate of 20% of the proceeds from the assignment (Article 2).

A reasonable and stable scale of supply of land for residential premises will be maintained. In principle, the total supply of land for housing in 2013 shall not be lower than the average actual supply during the past five years (Article 3).

Related legislation: Circular on Issues Relevant to Improving the Regulation and Control of the Real Property Market, Jan 26 2011, CLP 2011 No.2 p.37; Circular on Further Regulating the Administration of Premises Purchases by Overseas Organisations and Individuals, Nov 4 2010, CLP 2010 No.10 p.50; Circular on Specifying the Criteria for Defining the Second Unit of Residential Premises for Commercial Personal Residential Mortgage Loan Purposes, May 26 2010, CLP 2010 No.6 p.41; Circular on Determined Suppression of the Exceedingly Rapid Rise of Certain Urban Housing Prices, Apr 17 2010, CLP 2010 No.4 p.45; and Circular on Promoting the Steady and Healthy Development of the Real Property Market, Jan 7 2010, CLP 2010 No.3 p.31