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Housing-management authorities in Yangzhou, Jiangsu province,introduced a policy on Tuesday that rewards homebuyers who purchasealready finished residences, raising questions over whether thatoffer will come into conflict with the central government's realestate restrictions. Yangzhou homebuyers who purchase finished homes, commonly known asrefined decorated houses, will receive cash rewards that vary inaccordance with the size of the residences they buy, according to agovernment circular posted on the housing authorities' officialwebsite. A reward worth 0.6 percent of a purchase contract's price will goto those who buy finished houses that occupy up to 90 squaremeters. For residences taking up from 90 to 120 square meters, therewards will be worth 0.5 percent of a contract's value and, forresidences taking up 120 to 144 square meters, will be worth 0.4percent of the value, according to the circular. The policy willtake effect on July 1 and last a year. It applies only to the price of a residence, not to the cost of anyparking lots, garages or maintenance needs that come with it, thecircular said. The policy began to draw controversy after it had been posted onthe housing authorities' website on Tuesday morning. By theafternoon, it had been deleted, only to be posted again in theevening. Some critics said the policy was local officials' attempt tostimulate the depressed housing market amid the centralgovernment's policy meant to restrict sales of residentialproperties. "We introduced this policy simply because we want to promote salesof finished houses," said an employee at the housing authority'sgeneral office, who spoke on condition of anonymity. The employee said local officials have no intention of interferingin the real estate market and are only fulfilling their duty tohelp homebuyers purchase residences that are safe and of a highquality. "Currently in Yangzhou, finished houses do not make up asignificant percentage of all new residential apartments projects,"the employee said. "And the reward policy is meant to change thatsituation." Alongside the circular about the reward policy was also posted anexplanatory note. "In Yangzhou, we will strictly stick to the central government'smacro-control policies and strengthen our control and adjustmentpolicies for the real estate market," the note says. In Yangzhou, the average price of residential properties is about8,316 yuan ($1,319) per square meter, according to statistics fromthe China Index Academy, a property data and consultancy service.Under the new policy, a homebuyer will receive about 4,490 yuan forpurchasing a 90-square-meter residence and about 4,790 yuan for a144-sq-m residence. "I'll wait and see if further favorable policies will come out so Ican buy a house at a lower price," said Xu Xinqi, a Yangzhouresident who said he believes housing prices "have not yet reachedtheir bottom". Another Yangzhou resident, Hu Xiaoqin, said it's too early tocomment on the policy. He said there's a possibility that itconflicts with the central government's housing policies andtherefore might end up being canceled. On February 9, Wuhu, in East China's Anhui province, introduced apolicy stipulating that those who buy homes would be exempted frompaying taxes on those transactions. It also granted stipends tothose who buy houses that occupy up to 90 sq m. Three days later, the city government announced it would suspendthe policy. Xue Jianxiong, an analyst from China Real Estate Information Corp,said he thinks Yangzhou's new policy will not have a great effecton the local real estate market because the rewards being offeredare not large. Xue said the policy will probably be found to be in conflict withthe central government's and, like the similar policies in Wuhu, berevoked. The e-commerce company in China offers quality products such as Metal Wire Shelves , Display Rack Hooks Manufacturer, and more. For more , please visit Wire Display Racks today!
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