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Shenzhen relaxed home-buying restrictions yesterday in a bid to help boost the city’s real estate market.

The Shenzhen Municipal Housing and Construction Bureau issued a notification, titled “Notice on Further Optimizing Real Estate Policies,” aimed at refining regulations concerning housing purchases. This move represents a pivotal step towards enhancing the real estate market by adjusting housing purchase restrictions in specific areas, modifying policies for enterprise purchases of residential properties, and streamlining the process for pre-owned housing transactions.

Under the new guidelines outlined in the notification, non-local residents and single adult individuals (including divorced individuals) are restricted to purchasing one residential property in Shenzhen. For those buying in Yantian, Bao’an (excluding Xin’an and Xixiang subdistricts), Longgang, Longhua, Pingshan, Guangming, and Dapeng New Area, the requirement for the number of years of individual income tax and social security contributions has been reduced from three years to one year. For purchases in other regions, the three-year contribution requirement still applies.

The notification specifies that resident families with two or more underage children are allowed to acquire an extra residential property in the aforementioned districts while existing restrictions remain effective

Moreover, the notice states that qualified enterprises meeting criteria such as operating for a minimum of one year, cumulatively paying 1 million yuan (US$138,700) in taxes in Shenzhen, and employing a workforce of at least 10 individuals, are permitted to purchase residential properties in the aforesaid areas to address employee housing needs.

Furthermore, the notification stresses its support for real estate development companies with ongoing projects in Shenzhen, supporting them to conduct “acquiring old homes from new home buyers” and “trade-ins of homes.” Enterprises acquiring old homes from buyers of new homes will benefit from exemptions from specific purchase constraints that typically apply to corporate entities as stipulated by the city. The Housing Provident Fund Management Center of Shenzhen will help facilitate housing transactions, simplify procedures like property transfers involving existing mortgages, and improve the overall convenience of real estate transactions.