Guiyang and Guian unveil measures to spur real estate

Guiyang and Guian in Southwest China's Guizhou province have unveiled measures to promote the healthy development of the real estate market, local media reported.

The measures are part of efforts to implement the nation's policies on macro-regulation of the real estate industry, stabilize the market expectations of the sector and bolster the healthy development of the real estate market in Guiyang, the provincial capital, and the Guian New Area, a national-level new urban area in Guizhou, according to a notice released by the general office of the Guiyang government and the office of the Guian New Area on Feb 10. 

The nine measures include scientifically formulating plans for land supply, optimizing the administrative approval procedures for real estate construction and stimulating the vitality and tapping into the potential of both supply and demand in the real estate market.

A land reserve fund pool will be in place by withdrawing 5 percent of the revenues from the State-owned land transfer. Efforts will be made to provide loans for eligible urban renewal projects, which are specifically used for land development and urban renewal projects.

Limits will be placed on land supply, with the total area of commercial land controlled at about 6000 mu (400 hectares) per year. The area of a single plot will be controlled at 100 mu to improve the utilization rate of land transfer.

The threshold of personal housing consumption will also be lowered. Financial institutions are encouraged to implement a policy that allows a 20-percent down payment for the first house when applying for loans. They are also encouraged to implement the same loan policy for families who have purchased a house with loans that have been paid back and want to purchase a second house in order to improve their living conditions.