Further applying the roles of taxation, credit and land policies to make adjustments
(3) Adjusting business tax in the home transferring process. In order to restrain the purchasing demand out of speculation or investment purposes, selling of houses within 5 years since their purchases are subject to full business taxation on the revenue gained as of June 1, 2011. Individual selling of ordinary houses exceeding 5 years (inclusive) since their purchases are exempt from business taxes. Individual selling of non-ordinary houses exceeding 5 years (inclusive) since their purchases are subject to business taxes levied on the difference between the sales revenue and cost of purchase. Tax authorities should be strict with tax enforcement and prevent from levy loopholes and discretionary reduction or exemption.
(4) Hardening conditionality on credit extension to real estate enterprises. In order to restrain real estate development enterprises stockpiling land and houses with the support of bank loans, commercial banks are not allowed to extend loans to real estate enterprises if they can not satisfy conditions such as the project equity requirement of at least 35% of the total funds needed. For development enterprises with relatively large unused land or vacant commercial houses, commercial banks should be strict with loan extension or any other form of rollover credit extension in accordance with the principle of prudential operation. Commercial banks are not allowed to accept commercial houses vacant for more than 3 years as collateral of their loans.
(5) Appropriately adjusting housing consumption policies on a discriminative basis. In order to control the excessive increase of housing prices, the minimum down payment ratio of individual housing mortgage loans must not be less than 30% as of June 1, 2011. Considering the housing demand of medium and low income people, the minimum payment ratio for purchasing houses for self-residing purposes and with sizes less than 90 M2 will remain at 20%.
(6) Ensuring land supply for low priced as well as medium and small sized ordinary commercial houses. People’s governments at all levels should formulate annual land-using plan and scientifically ascertain land supply for real estate development. Priority should be given to land supply of medium and low priced as well as medium and small sized ordinary commercial houses (including economically affordable houses) and low rent houses. The annual land supply for such houses must be at least 70% of the total land supply for residential purposes. Construction enterprises should be selected through tendering and bidding for land prices and housing prices on the basis that housing unit structure and housing prices are subject to restriction. Suspension of land supply for developing villa-like real estates shall be continued and land supply for low-density as well as big-sized houses will be strictly controlled.
(7) Strengthening disposal of land left unused. Departments such as Land and Planning should strengthen supervision on land for developing real estates. For land left unused for more 1 year since its contracted construction date, high fees shall be levied according to laws and construction enterprises shall be ordered to start and complete projects within a time limit. For land left unused for more than 2 years since its contracted construction date, the land use right shall be revoked free of charge. Land with construction initiated on the contracted date but failing to reach 1/3 of the total construction area or with investment failing to reach 1/4 of the total amount and with an unauthorized suspension of constructing for over 1 year shall be considered as land left unused.