Guangdong Wants Conversion of Joint Property Rights Housing into Commercial Housing

The Guangdong province government is mooting plans to allow the conversion of joint property rights housing into commercial housing following ten years of ownership.

The Guangdong province government released the draft version of the “Guidance Opinions on Advancing the Development of Joint Property Rights Housing” (关于推进共有产权住房发展的指导意见(征求意见稿)) for public feedback on the afternoon of 11 September.

The move follows the release of the “Notice Concerning the Undertaking of Exploratory Trials of Joint Property Rights Housing Policies” (关于开展共有产权住房政策探索试点的通知) three months previously, which proposes one year trials in five cities including Guangzhou, Shenzhen, Zhuhai, Foshan and Maoming.

According to the Opinions joint property rights housing should focus primarily on small and medium-sized units with a build floorspace of less than 90 square metres, with purchases restricted to a single unit per household.

The assessment of prices for joint property rights housing should be entrusted by suppliers to a real estate appraisal body prior to sale, while buyers should enjoy ownership rights equal to the percentage of actual payment made,w chin should be no less than 50% in principle.

The Opinions also propose that buyers be allowed to obtain full ownership rights to joint property rights housing after a period of no less than ten years, permitting their conversion into commercial housing.

Buyers could also be permitted to transfer houses after a five year period,

Beijing first mooted the idea of joint property rights for housing in a draft document released in September 2017, outlining a scheme under which new homes are jointly owned by both the government and homebuyers, with the government providing buyers with rights of usage.

Chinese policymakers hope that the scheme will expand the supply of affordable housing in major cities, alleviating pressure on urban property markets.

 

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