Policy Allows Residents to Purchase Government Subsidized Homes
Based on a document that was issued by the city government, residents who are living in government subsidized affordable homes will be able to apply for full ownership of the said property. The new changes in the law means that the government subsidized apartments can now be sold or rented once it’s into private ownership. People living in such homes can apply for full ownership as long as they lived on the property for five years and are willing to pay a certain fee.
Government subsidized apartments are cheaper than homes that are sold in the market in the same area and the new owners are required to pay an extra 50 percent of the increase in home value in order to fully own the property. For example a 60 square apartment in Taoyuancun housing estate in Nanshan costs 330,000 and is considered a government subsidized affordable home. And based on government estimated prices that said apartment is worth 1,2 million yuan and to get full ownership an extra 430,000 yuan is needed.
The policy will also allow government subsidized housing to enter the housing market but is not encouraged. Also prices are outdated and the pricing information was only updated two years ago, and according to the housing bureau the database adjustment will happen during the fall of this year. Without the price updates to reflect current housing prices, residents of affordable homes are able to avoid payment of a certain amount if they prefer to purchase the properties now.