Shenzhen relaxed home buying restrictions in a bid to help boost home sales and stabilize the city’s real estate market.

The Shenzhen 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 second-hand housing transactions.

Under the new guidelines outlined in the notification, non-local residents and adult individuals (including divorced individuals) are restricted to purchasing one residential property in Shenzhen. For those buying within designated areas such as 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 local resident families with two or more underage children can, while existing restrictions remain effective, are allowed to acquire an extra residential property in the aforementioned districts.

Moreover, the notice states that qualifying 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, enabling them to conduct “acquiring old homes from new home boyers” 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.