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It has been five years since the promulgation of the Circular of the State Council on Further Deepening the Urban Housing System Reform and Accelerating Housing Construction (No. 23 [1998] of the State Council), the urban housing system reform has been deepened, the housing construction has been sped up, the housing consumption has been started effectively, and the housing conditions of the citizens have been improved greatly. And the continuous development of the real estate markets focusing on the dwelling houses has played an important role in promoting the increase of the economy and improving the people's living standard. At the same time, we could see that the development of the real estate markets of our county is still imbalanced, the structural contradiction on the supply and demand of the dwelling houses in some regions is still obvious, the price of the realty and the investment in it are over increased; the service systems of the real estate markets are still distempered, the housing consumption still needs to be expanded; the development and transaction acts of the real estate are not normative, and the supervision and regulation and control of the real estate markets are to be perfected. Therefore, in order to promote the continuous and healthy development of the real estate markets, we hereby make the following notice concerning the relevant issues: I. IMPROVING THE UNDERSTANDING, AND NAILING DOWN THE GUIDING PRINCIPLES 1. The significance of the continuous and healthy development of the real estate markets shall be fully understood. The real estate industry has a high degree of conjunction and strong driving force, which has become the backbone industry of the national economy. To promote the continuous and healthy development of the real estate markets is the basic requirements for improving the housing standard of the citizens, improving the inhabitation quality, and meeting the demands of the material and cultural life of the masses; and the effective measures for boosting consumption, enlarging the domestic demands, promoting the increase of the investment, and keeping the continuous, rapid and healthy development of the national economy; the effective way for bringing the advantages of the human resources into full play, enlarging the social employment. It is of great significance to realize the continuous and healthy development of the realty markets for building a well-off society in an all-round way, and speeding up the socialist modernization. 2. The guiding principles for the development of the real estate markets shall be further nailed down. The basic orientation for the marketization of the dwelling houses shall be adhered to, the real estate markets system shall be improved continuously, and the foundational functions of the markets in the allocation of the resources shall be brought into greater play; and the supply structure shall be adjusted according to the guidance of demands so as to meet the demands for houses of the families with different incomes; the reform shall be deepened in order to eliminate the obstacles of system and policy that may influence the housing consumption of the citizens, and the establishment and improvement of the housing safeguard system which fits in with the situation of our country shall be sped up; the macro-control shall be strengthened to realize a general balance of the gross of real estate markets, and a more reasonable structure and a more stable price of the real estate markets. The measures formulated by different regions shall be adjusted to the local conditions, and decisions shall be made separately under the guidance of the uniform policy of the State, so as to enable the development of the real estate industry to be in harmony with the local economic and social development, and to coordinate with the relevant industry, and thus to promote the continuous development of the economy and the society. II. IMPROVING THE SUPPLY POLICY AND ADJUSTING THE SUPPLY STRUCTURE 3. The policies for housing supply shall be improved. The governments in all regions shall, in light of the process of the urban housing system reform, the housing conditions of the citizens and the variation of the income levels, improve the policies for housing supply and adjust the housing supply structure, so that most families can purchase or rent ordinary commercial houses gradually. Meanwhile, the specific standards and the scope of income shall be made reasonably for those who are to be provided with the economical and functional houses or the cheap renting houses according to the local conditions. 4. The building and management of the economical houses shall be strengthened. The economical houses are the policy commercial houses with the nature of safeguard. The cost for the building of the economical houses shall be earnestly reduced through measures such as allocating the land, derating the administrative operating charges, constructing the infrastructure outside the community by the government, controlling the rate of the development loan, and putting into effect the tax preferential policies. The economical houses shall be strictly controlled in the sets of small and medium size, the sales price of which shall be strictly examined and approved, and the construction projects of which shall be made by bidding and tender according to law. The system of application, examination and approval, and the public summons shall be implemented concerning the economical houses, the specific measures of which shall be formulated by the people's government of the city (county). The construction of houses by collecting money or through cooperation belongs to the construction of the economical houses, of which the standard of building, the parties participating in and the preferential policies shall be implemented in accordance with the relevant provisions on the economical houses. No entity shall allocate houses in kind or develop and operate the real estate in any disguised form in the name of building houses by collecting money or through cooperation. 5.The supply of ordinary commercial residential houses shall be increased. The development of the ordinary commercial residential houses shall be sped up by taking effective measures according to the markets demands, so as to increase the proportion of their markets supply. For the building of the ordinary commercial houses, the land supply shall be adjusted, the land price shall be controlled, the items of administrative operating charges on construction and consumption shall be cleared up and gradually reduced, the construction cost shall be reduced through multi-channels, and every effort shall be made to adjust the housing price, so that the price shall be reasonable to the housing payment abilities of the families of most citizens. 6. The system for the cheap house renting shall be established and improved. The function of the governments on safeguarding the housing shall be strengthened so as to have the basic housing demands of the urban families with minimum income earnestly safeguarded. The stable and normative money resources for safeguarding the housing shall be formed with the main funds from the financial budget, and financing from multi-channels. The safeguarding levels shall be determined properly in combination with the bearing capability of the local finance and the actual housing conditions of the citizens. The housing safeguard for the families with the minimum income shall mainly be kept by granting the lease subsidy in principle, with the in kind and the lease and the verification of the rentals for reduction as the supplements. 7. The construction of the top grade commercial houses shall be controlled. The standards for the differentiation between the top grade commercial housing and the ordinary commercial housing shall be properly determined according to the particular circumstances in every locality. The supply of the construction land for this kind of projects shall be controlled, or the examination and approval for this kind of projects shall be suspended in the areas where the top grade and large commercial housing, as well as the top grade office buildings and the houses for commercial use are overstocked. And the proportion of the capital money and the presale condition of such development projects as the top grade commercial housing may also be improved properly. III. REFORMING THE HOUSING SYSTEM, AND IMPROVING THE MARKET SYSTEM 8. The sale of the state-owned houses shall be pushed forward continually. The single set of houses, which could ensure the safety of the inhabitation may be sold to the employees according to the particular circumstances of the locality. Those state-owned houses whose ownership is under disputes may be sold to the employees after the ownership is recognized in written form by the current housing administration entity. For such problems left before as the incomplete formalities and so on, which may influence the sale of the state-owned houses and the registration of the ownership and issuance of license, the policies shall be made by the locality so as to nail down the limitations, and handle them properly. 9. Housing subsidy system shall be improved. The relevant provisions on stopping the housing distribution in kind shall be strictly implemented, the standard for the housing subsidy shall be checked and ratified carefully, and great efforts shall be made to have the collection of the housing subsidy money increased significantly according to the demands for the subsidy money and the financial possibility, so as to push the work for the granting of the housing subsidy earnestly. The net income gained from the sale of the directly controlled state-owned houses, and from that of the state-owned houses of the entities, which are afforded by the finance, shall be planned as a whole and distributed as the housing subsidy according to the relevant provisions on the administration of the income and expenses as two aspects. 10. The secondary housing markets shall be revitalized. The policy obstacles that influence the listing transaction of the state-owned houses having been purchased shall be cleared up carefully, and the citizens shall be encouraged to exchange and purchase houses. No entity, without authorization, shall make restrictions on the listing transaction of the state-owned houses that have been purchased, unless otherwise prescribed by laws and regulations, or stipulated by the former contracts for the sale of the state-owned houses. And the standard for the payment of the land proceeds from the listing sale of the state-owned houses that have been purchased may be reduced properly in each locality; for the listing sale of the state-owned houses that have been purchased in the cost price of the housing reform, the former entity that has the property rights shall no longer take part in the distribution of the proceeds in principle. The administration on the registration and putting-on-record of the contracts for lease of house shall be strengthened according to law, and the markets for the lease of houses shall be developed normatively. 11. The market services shall be developed normatively. The market rules on the intermediary services of the real estate shall be improved, and the system of the real estate broker and that of the practice qualification of a master valuator of real estates shall be implemented strictly, so as to provide accurate information and well-suited services for citizens. The markets for the decoration and fitment of houses shall be developed normatively in order to ensure the quality of a project. The Regulations on Realty Management shall be carried through and put into effect in order to improve the environment of the housing consumption earnestly. IV. DEVELOPING THE HOUSING CREDIT, AND STRENGTHENING THE MANAGEMENT SERVICES 12. The collection and centralization of the housing accumulation fund and the granting of the loans shall be increased significantly. The work for the collection and centralization of the housing accumulation fund shall be strengthened, and every possible means shall be taken to develop the trust loans for the housing accumulation fund, of which the formalities shall be simplified, the unreasonable charge shall be cancelled, and the services shall be improved so as to make it convenient for providing a loan to the employee. 13. The mechanism of loan guarantee for personal housing shall be improved. The supervision on house purchasing security institutions shall be strengthened, the security acts shall be regulated, and the risk reserve system shall be established and improved, in order to encourage them to provide security for the housing loans of the families with medium and low incomes. Those institutions without security ability or normative security acts shall be cleared up quickly and ordered to make rectifications and improvements within a limited time. The improvement of measures for the administration of the security of the housing purchase shall be sped up, and the national loan guarantee systems on personal housing shall be established after research. 14. The supervision on real estate loans shall be strengthened. Continuous credit support shall be increased significantly to the qualified real estate development enterprises and the real estate projects. Meanwhile, the administration on the examination and verification of the loans on the real estate development projects shall be reinforced. The granting of loans of real estate in violation of regulations shall be strictly prohibited. Supervisions on the use of the presale money and the credit capital shall be strengthened to prevent its embezzlement. The establishment of the personal credit system shall be sped up, and the system on the registration of real estate mortgage shall be improved, so as to strike all kinds of acts of gaining loans and capitals by fraud. The former projects in which the granting or obtaining of the loans violated the regulations shall be handled properly, in order to control and dissolve the real estate credit risk and maintain the financial stability. V. IMPROVING THE PLANNING ADMINISTRATION, REGULATING AND CONTROLLING THE LAND SUPPLY 15. The plan of housing construction and the policies on housing industry shall be formulated. The long-term and mid-term plans for improving the development of the real estate industry and the housing construction shall be worked out and modified in time by each locality, in order to strengthen the guidance on the development of the real estate industry. The housing demands arising from the process of urbanization shall be fully considered, and the housing construction problems in small towns shall be highly thought of. The economic and technology policies on housing industry shall be formulated and improved, the advancing mechanism shall be improved, and the research and development as well as the popularization of the advanced and functional complete sets of technique, products and materials by the enterprises shall be encouraged, in order to boost the modernization of the housing industry. The systems on determining the capability of the houses and the authentication, elimination of the housing products shall be improved. Programming of the houses at a high starting point and designing with high level shall be adhered to, attentions shall be paid to the building of the environment of the community and the design of the inner functions of the housing. 16. The functions of regulation and control on the planning of the urban and rural areas shall be brought into full play. The overall arrangement and the proportion of all kinds of land used for the real estate shall be properly determined in the general plan and the construction plan for the near future of the city. Priority shall be given to the projects on the construction of the houses for the relocation and resettlement, the economical houses, the ordinary commercial houses, the rebuilding of the dangerous and old houses, as well as the construction of the urban infrastructure. The municipal supporting facilities shall be properly collocated. The land in the development zones and the districts that are formed after revocation of the city (county) shall all be brought into the city plan for uniform administration. The transfer of the right for the examination and approval of the program shall be strictly prohibited, and the relevant persons liable will be investigated according to law for their acts of all kinds in violation of the urban planning laws and regulations in the development of the real estate. 17. The macro-control on the land markets shall be strengthened. The system of planned supply of the use of land for the development of the real estate shall be improved in each locality, and the use of land for the development of the real estate shall be in conformity with the general plan and the annual plan for land use. The occupation of farmland shall be strictly controlled. The transfer to a lower level of the right for the plan and the examination and approval of the land shall be prohibited. The development of the real estate that makes use of the land previously allocated shall be brought into the uniform land supply channels of the government. Private transactions shall be strictly prohibited. The new land supply must be restricted in regions where the land is over supplied and there is too much vacant construction land. In cities where the demands of the ordinary commercial houses and economical houses exceed the supply, and the housing price is rising much higher, the land supply may be properly adjusted and increased as prescribed. VI. STRENGTHENING THE SUPERVISION OF THE MARKETS, AND NEATENING THE MARKER ORDER 18. The system of supervision on the markets shall be improved. The administration on the qualifications of the real estate enterprises and the examination and approval of the development projects of the real estate shall be strengthened. The system of capital money of the real estate development projects and that of the handbook of the project shall be strictly implemented. The system of the security on the payment of the projects by the owners of the houses shall be pushed forward. The real estate enterprises that have the advantages of good will and famous trademarks shall be supported to form a batch of big enterprises and enterprise groups fully reinforced and strongly competitive, through merger or incorporation, purchase and reorganization. The transfer of the real estate projects shall be strictly regulated. In case the nature of the land use and the index of the planning of the real estate projects that have been approved really need to be altered, they shall be reported for approval according to the prescribed procedures anew. 19. The information system of the real estate markets and the system of early warning and prediction shall be established and improved. The work for the statistics of the realty markets shall be strengthened, and the information system of the real estate markets all over the country shall be improved, and the system of early warning and prediction of the realty markets shall be established and improved as well. The fees that need to be borne by the government in the establishment of the information system of the real estate markets and that of early warning and prediction in each locality shall be put into effect by each finance department in combination with the construction of the local information system and that of the electronic governmental affairs together. 20. The order of the real estate markets shall be neatened and regulated. Great efforts shall be made to reorganize and manage the special affairs concerning the order of the real estate markets, of which the focus is on the investigation and handling of all kinds of acts in violation of laws and regulations in the development, transaction, intermediary services of the real estate, and the management of the real estate. The conducts of some entities and departments, which force consumers to accept the intermediary services or the intermediary service institutions designated by them, shall be prohibited. The improvement of the real estate credit system shall be sped up, and the supervision by the society shall be strengthened. Measures shall be taken actively to accelerate the assimilation of the commercial houses that are kept long in stock. Those real estate enterprises that have large quantities of vacant houses shall be restricted to take part in the public sale of the land or the application for the new projects. The order of the land markets shall be further neatened, and such real estate development shall be strictly prohibited as those using the land obtained in the names of industries of science and technology, and education, which enjoy the preferential policies, or using the collective land of the village by any entity or person that makes enclosure by signing agreement with the village. The administration on the headstreams shall be strengthened earnestly in order to effectively prohibit and prevent all sorts of malversations in the housing system reform and the real estate transaction. The people's governments at all levels shall carefully carry out the macro-control policies of the state, improve the measures for the adjustment and control of the real estate markets in light of facts, and establish effective coordination mechanism, as well as take charge of the healthy development of the local real estate markets. The people's governments at the provincial level shall strengthen the guidance and supervision of the work for the real estate development of the cities and counties. The relevant departments of the State Council shall fulfill their own duties and cooperate with each other in their work, and strengthen the instruction and supervision of the work in each locality, especially in the regions that have obvious problems. Such state departments as that of the development and reform, finance, state land, banking, taxation, etc., shall adjust and improve the relevant policies and measures. The Ministry of Construction shall, along with the relevant departments, formulate as soon as possible, the measures for the implementation of the administration on the economical houses, the supervision on the housing subsidy system, the improvement of the information system of the real estate markets system and the early warning and prediction system, the establishment of the national security system on personal housing loans, etc., and direct the specific implementation in each locality, and shall be responsible for supervising and inspecting the implementation of this Circular. |
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