Guangdong releases real estate stimulus measures
On 3 March, the Guangdong Government released a circular named Opinions on Boosting the Healthy Development of the Real Estate Market in Guangdong, aimed at stimulating the public housing development, boosting transactions in the mass residential market, and providing support to real estate enterprises. The Opinions can be summarized as follow:
l The same preferential loan rate and minimum down-payment enjoyed by first-time home buyers will also be granted to buyers of a second unit of common housing that has an average residential area lower than the local average level.
l Preferential loan rates are applicable to buyers purchasing a first or second unit of housing through a commercial loan.
l The loan cap of Individual Housing Provident Fund loans may be raised up to RMB 100,000-200,000 accordingly. Direct relatives of buyers of common housing are entitled to withdraw from the Individual Housing Provident Fund.
l Individuals selling their only unit of self-use housing held for over two years will be entitled to exemptions in their local individual income tax.
l Deed tax is levied at 1% for individuals purchasing a first unit of common housing.
l Hukou regulations may be loosened according to the local situation.
l Citizens from Macau, Hong Kong and Taiwan who buy houses in Guangdong Province are entitled to enjoy the same treatment as mainland citizens.
l Companies that are not able to pay the land premium for sites transacted in 2008 are entitled to postpone the due date to no longer than two years.
l Real estate enterprises that meet specified requirements can amortize the Land Appreciation Tax.
Guangzhou Metro Corporation to develop a complex scheme in Foshan
Guangzhou Metro Corporation recently announced it would invest RMB 1.8 billion on developing a complex scheme called Nanhai Metro Finance City, located above the metro station in Guicheng Nanhai District, Foshan. The development will consists of 86,000 sm of residential property, 93,000 sm of office space, 66,000 sm of retail space and a 25,000-sm hotel, with transportation exchange facilities between Guangzhou – Foshan Metro and public transport. Located at the intersection of Haiba Road and Guilan Road, the scheme is at the core of the Guangdong High-tech Service Zone for Financial Institutions. The transportation exchange facilities and retail podium are expected to be finished in August 2010, while the whole project will be completed in 2011.
Phase 1 of Guanghzou Metro Line 7 to set up nine stations
Line 7 of the Guangzhou Metro will run about 27.831 km, with a total of 14 stations including six exchange stations. Line 7 will be developed in two phases. The 17.711-km Phase 1 starts from Guangzhou New Railway Station and ends at Xinzao, with a total of nine stations, three of which are exchange stations. According to the plan, Line 7 will connect with Metro Line 2, the Guangzhou – Zhuhai Railway, the Wuhan – Guangzhou Passenger Line, and the Guangzhou – Foshan Line 2 at New Railway Station. In addition, it will have an interchange with Metro Line 3 and Line 4 at Hanxi Changlong Station and Xinzao Station, respectively.