Renting a house will likely cost less than buying a house with the successive introduction of financial supporting policies.
Recently, Shanghai Provident Fund Management Center signed cooperation agreement with the 14 house rental enterprises in Shanghai, aiming to develop the house rental market in Shanghai. Shenzhen also announced recently that the quota of housing provident funds that are allowed to be withdrawn for house rental will rise 50 percent to 65 percent. There are many financial policies introduced to support the house rental market. Local governments are providing financial support for tenants via housing provident funds. Financial institutions, including China Construction Bank, are also actively involved in the process.
Withdrawing housing provident funds for house rental will be more convenient
On November 15, Shanghai Provident Fund Management Center signed cooperation agreement with the 14 house rental enterprises in Shanghai. In the past, the withdrawal of provident funds for house rental required tenants to withdraw in local provident fund management center and then pay in housing rental companies. After the signing of the contract, provident fund management centers will entrust housing rental companies to accept the application of the withdrawal and payment of provident funds in one stop. The provident fund management center will carry out unified check of information and funds allocation to employees’ account.
It is learnt that the 14 housing leasing companies include not only house rental platform companies, like Shanghai Yangpu District Public Rental Housing Operation and Management Co., Ltd., Shanghai Lujiazui Talent Apartment Construction and Development Co., Ltd. but also market-oriented house rental operation companies like Vanke Boyu, Mofang Apartment. For provident fund management departments, cooperation with house rental companies can ensure the authenticity and completeness of leasing behavior and personal information, and improve the management order and credit system construction of housing provident funds withdrawal. For housing leasing companies, the cooperation helps them learn information about the housing provident funds’ allocating to personal account to ensure timely receipt of rent and support the fund return and healthy development of housing leasing companies.
According to the "circular on further relaxing the Conditions for withdrawing housing provident fund for house rental issued by Shanghai in 2015, employees who pay housing provident funds for three months and owns (or their spouses) no house in Shanghai and have to rent houses can withdraw their own or their spouses’ housing provident fund to pay for house rental. Employees who rent public rental housing can withdraw all their housing provident funds. Those who rental other types of houses (including commercial housing, public housing, after-sale public housing and housing provided by employers) can withdraw the maximum amount of 2,000 yuan of housing provident funds each month, and the amount withdrawn should not exceed the actual amount of rental expense.
Coincidentally, Shenzhen recently also announced a new provident fund provisions, tilting to tenants. On November 14, Shanghai Provident Fund Management Center announced that it will raise the quota of housing provident funds that are allowed to be withdrawn for house rental to 65 percent from 50 percent. For example, if an employee pays 2,000 yuan of housing provident fund each month, he or she may withdraw 15,600 yuan of housing provident fund each year.
Supporting polices for house rental introduced intensively
The reporter found that there are many financial policies introduced to support the house rental market. Not only local governments are providing financial support for tenants via housing provident funds. Financial institutions are also actively involved in to deploy the blue-ocean house rental market. For example, the head office of China Construction Bank recently requested its branches from all over the world to seize huge opportunities of providing financial services in the housing rental market, develop special products to meet the life-cycle financial needs such as the construction of leasing housing, buying housing for rental, rent payment, housing renovation and finishing. China Construction Bank will mainly provide services for brand housing enterprises leasing companies and state-owned housing leasing companies. The term of its housing leasing loans will be no more than 25 years.
In addition to financial policies, the reporter also learnt that tax incentives for housing leasing companies may have been on the way. A series of favorable policies, including financial support, tax relief, revitalization of assets via securitization, are being introduced.
Local governments have also speeded up the implementation of local housing leasing policies, with a focus on the supply of leased land. On November 16, Beijing Municipal Planning, Land Resources Administration Commission and Beijing Municipal Commission of Housing and Urban-Rural Development jointly issued the opinions on further strengthening the work of construction of leasing housing in collective land. It plans to supply 1,000 hectares of collective land within five years from 2017 to 2021 for the construction of leasing housing. On November 15, Zhengzhou Municipal Government also announced the pilot program on the construction of leasing housing in collective land. It will operate a batch of collective rental housing projects in Zhengdong New District and the trusted areas. Local governments have actively explored the construction of rental housing in collective land, which will complement land for state-owned construction and help ease the pressure on land supply.
An industry insider believes that the establishment of a long-term house rental and purchasing mechanism and the development of the housing rental market will be a general market. Market sources may be channeled to both tenants and rental housing companies. Taking the financial sector as example, renting a house will likely cost less than buying a house. It is foreseeable that driven by the central government and accelerated implementation of local governments, favorable policies for the housing rental market are expected to be introduced incessantly.
Recently, Shanghai Provident Fund Management Center signed cooperation agreement with the 14 house rental enterprises in Shanghai, aiming to develop the house rental market in Shanghai. Shenzhen also announced recently that the quota of housing provident funds that are allowed to be withdrawn for house rental will rise 50 percent to 65 percent. There are many financial policies introduced to support the house rental market. Local governments are providing financial support for tenants via housing provident funds. Financial institutions, including China Construction Bank, are also actively involved in the process.
Withdrawing housing provident funds for house rental will be more convenient
On November 15, Shanghai Provident Fund Management Center signed cooperation agreement with the 14 house rental enterprises in Shanghai. In the past, the withdrawal of provident funds for house rental required tenants to withdraw in local provident fund management center and then pay in housing rental companies. After the signing of the contract, provident fund management centers will entrust housing rental companies to accept the application of the withdrawal and payment of provident funds in one stop. The provident fund management center will carry out unified check of information and funds allocation to employees’ account.
It is learnt that the 14 housing leasing companies include not only house rental platform companies, like Shanghai Yangpu District Public Rental Housing Operation and Management Co., Ltd., Shanghai Lujiazui Talent Apartment Construction and Development Co., Ltd. but also market-oriented house rental operation companies like Vanke Boyu, Mofang Apartment. For provident fund management departments, cooperation with house rental companies can ensure the authenticity and completeness of leasing behavior and personal information, and improve the management order and credit system construction of housing provident funds withdrawal. For housing leasing companies, the cooperation helps them learn information about the housing provident funds’ allocating to personal account to ensure timely receipt of rent and support the fund return and healthy development of housing leasing companies.
According to the "circular on further relaxing the Conditions for withdrawing housing provident fund for house rental issued by Shanghai in 2015, employees who pay housing provident funds for three months and owns (or their spouses) no house in Shanghai and have to rent houses can withdraw their own or their spouses’ housing provident fund to pay for house rental. Employees who rent public rental housing can withdraw all their housing provident funds. Those who rental other types of houses (including commercial housing, public housing, after-sale public housing and housing provided by employers) can withdraw the maximum amount of 2,000 yuan of housing provident funds each month, and the amount withdrawn should not exceed the actual amount of rental expense.
Coincidentally, Shenzhen recently also announced a new provident fund provisions, tilting to tenants. On November 14, Shanghai Provident Fund Management Center announced that it will raise the quota of housing provident funds that are allowed to be withdrawn for house rental to 65 percent from 50 percent. For example, if an employee pays 2,000 yuan of housing provident fund each month, he or she may withdraw 15,600 yuan of housing provident fund each year.
Supporting polices for house rental introduced intensively
The reporter found that there are many financial policies introduced to support the house rental market. Not only local governments are providing financial support for tenants via housing provident funds. Financial institutions are also actively involved in to deploy the blue-ocean house rental market. For example, the head office of China Construction Bank recently requested its branches from all over the world to seize huge opportunities of providing financial services in the housing rental market, develop special products to meet the life-cycle financial needs such as the construction of leasing housing, buying housing for rental, rent payment, housing renovation and finishing. China Construction Bank will mainly provide services for brand housing enterprises leasing companies and state-owned housing leasing companies. The term of its housing leasing loans will be no more than 25 years.
In addition to financial policies, the reporter also learnt that tax incentives for housing leasing companies may have been on the way. A series of favorable policies, including financial support, tax relief, revitalization of assets via securitization, are being introduced.
Local governments have also speeded up the implementation of local housing leasing policies, with a focus on the supply of leased land. On November 16, Beijing Municipal Planning, Land Resources Administration Commission and Beijing Municipal Commission of Housing and Urban-Rural Development jointly issued the opinions on further strengthening the work of construction of leasing housing in collective land. It plans to supply 1,000 hectares of collective land within five years from 2017 to 2021 for the construction of leasing housing. On November 15, Zhengzhou Municipal Government also announced the pilot program on the construction of leasing housing in collective land. It will operate a batch of collective rental housing projects in Zhengdong New District and the trusted areas. Local governments have actively explored the construction of rental housing in collective land, which will complement land for state-owned construction and help ease the pressure on land supply.
An industry insider believes that the establishment of a long-term house rental and purchasing mechanism and the development of the housing rental market will be a general market. Market sources may be channeled to both tenants and rental housing companies. Taking the financial sector as example, renting a house will likely cost less than buying a house. It is foreseeable that driven by the central government and accelerated implementation of local governments, favorable policies for the housing rental market are expected to be introduced incessantly.
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