There are more and more measures to promote the steady and healthy development of the real estate market due to urban policies. Recently, Mianyang, the “second city of Sichuan”, has made a big move. In addition to the conventional relaxation of the conditions for the purchase of provident fund and improving the efficiency of the use of pre-sale funds, the purchase of two and three child families will be directly subsidized: for the purchase of new commercial housing, a financial subsidy of 200 yuan per square meter will be given according to the construction area.
According to the data of the seventh national census, compared with the six population census in 2010, the proportion of people aged 0-14, 15-59, 60 and over in Mianyang increased by 0.33 percentage points, decreased by 6.66 percentage points and increased by 6.33 percentage points respectively. Mianyang official media said that the problem of “one old and one small” will bring challenges to the long-term balanced development of the city’s population.
The reporter of China Foundation daily noted that since the release of the decision on optimizing Fertility Policies and promoting long-term balanced development of the population by the CPC Central Committee and the State Council in July last year, many places such as Linze, Gansu, Chaoyang, Beijing, Hai’an, Jiangsu, Zizhong, Sichuan and Ningbo, Zhejiang have introduced measures to support two child and three child families to buy and rent houses, such as subsidies or rewards for house purchase, increasing the amount of provident fund and giving priority to public rental housing.
maximum subsidy not exceeding 20000
On March 30, the office of Mianyang Municipal People’s government issued the notice on promoting the steady and healthy development of the real estate market (Exposure Draft), which put forward eight measures to support the commercial housing market to better meet the reasonable housing needs of buyers and promote the virtuous circle and healthy development of the real estate industry.
Among them, preferential policies are given to families with many children.
First, implement financial subsidies. For families who meet the policy and have two or three children, if they buy new commercial houses in Mianyang City (including Anzhou District) from the date of implementation of the notice, they will be given a financial subsidy of 200 yuan per square meter according to the construction area, and the maximum financial subsidy for a single household shall not exceed 20000 yuan. The subsidy funds shall be borne by the two-level finance of the urban area (Park) according to the financial system. The municipal level shall bear 30% and the district (Park) shall bear 70%.
Second, encourage enterprises to give special preferential treatment. Development enterprises are encouraged to give special preferential treatment to families with two or three children on the basis of the highest preferential treatment. The amount of special preference shall not be included in 15% lower than the record price.
In terms of economic aggregate, Mianyang is the second city in Sichuan, a large western province, with a GDP of 335 billion yuan in 2021.
According to the population data, Mianyang ranks fourth in Sichuan Province.
On May 28, 2021, Mianyang daily published “main data of the seventh national census in Mianyang”. The census results show that the permanent resident population of Mianyang is 4.8682 million, an increase of 254300, or 5.51%, compared with 4.6139 million in 2010. The total permanent resident population ranks fourth in the province.
However, the elderly population in Mianyang exceeds 1.15 million, accounting for 23.71% (including 893800 people aged 65 and over, accounting for 18.36%). Compared with the general population of six people in 2010, the proportion of people aged 0-14, 15-59, 60 and over increased by 0.33 percentage points, 6.66 percentage points and 6.33 percentage points respectively.
Mianyang Daily said that due to the adjustment of the national fertility policy, the number and proportion of children’s population increased, but the increase was small; The health status of the elderly population continues to improve, and the scale of the elderly continues to expand. The problem of “one old and one small” will bring challenges to the long-term balanced development of the city’s population.
many places have introduced support measures
In July 2021, the decision of the CPC Central Committee and the State Council on optimizing Fertility Policies and promoting long-term balanced population development was officially released.
The decision clearly proposes to strengthen tax, housing and other support policies. In combination with the next revision of the individual income tax law, we will study and promote the inclusion of care expenses for infants and young children under the age of 3 into the special additional deduction of individual income tax. When renting public rental houses, local governments can give appropriate consideration to families that meet the local housing security conditions and have minor children in terms of house type selection according to the number of minor children. Local governments can study and formulate preferential policies for differential leasing and purchase of houses according to the burden of raising minor children.
Since the release of the above decision, many places in the country have given preference to the housing policy of three child families, including Linze in Gansu, Chaoyang in Beijing, Hai’an in Jiangsu and Zizhong in Sichuan. The first shot was taken by Linze County, Zhangye City, Gansu Province. Last September, the county issued the implementation opinions of Linze County on optimizing Fertility Policies and promoting long-term balanced population development (Trial).
Among them, families with two or three children are given birth allowance and childcare subsidy. Families with three children can receive 10000 yuan of childcare subsidy every year until the child is three years old. In addition, the local family to promote fertility, also has two children, three children registered residence in Linze, giving the county housing 40 thousand yuan financial subsidies, centralized towns such as centralized housing 30 thousand yuan subsidy measures.
Such subsidies are not large. When the above measures were introduced, the price of new houses in Linze County was about 4700 yuan / m2, and the price of second-hand houses was only about 3200 yuan / m2. Some netizens said that “a subsidy of tens of thousands of yuan in a small county is equivalent to buying an extra bedroom”. The relevant person in charge of Linze County Health Bureau told the media that the reason for the introduction of this policy is that the permanent population of Linze County has declined sharply. According to the data of the seventh census, the permanent population of Linze County is 116000, a decrease of 22000 compared with 138000 in the sixth census.
In December last year, Hai’an City, under the jurisdiction of Nantong City, Jiangsu Province, followed suit and issued the policy of coordinating urban and rural areas and improving living conditions. When the second and third child families with children under the age of 18 of the city’s permanent residents buy pre-sale commercial houses, they will be given a discount of 200 yuan and 400 yuan per square meter respectively.
At the end of December, Ningbo City, Zhejiang Province also issued a notice that since 2022, for families with two or three children who have continuously paid the housing provident fund for two years and applied for provident fund loan for the first time to buy the first self occupied house, the maximum loan limit will be increased from Shanghai Pudong Development Bank Co.Ltd(600000) yuan / household to 800000 yuan / household.
On January 24, 2022, Zizhong County, Sichuan Province issued the implementation plan of “two awards and one subsidy” for families with two or three children to buy commercial housing: buyers who buy commercial housing with three children born to the same couple in accordance with the national fertility policy will be rewarded 10000 yuan / set if the housing area is less than 90 square meters (excluding); 12000 yuan / set for the purchase of a house with an area of 90-140 square meters; 14000 yuan / set will be awarded for the purchase of houses with an area of more than 140 square meters (excluding).
In addition, Beijing proposed that families with a large number of minor children who apply for public rental housing can be included in the scope of priority rent allocation, and appropriate consideration should be given to the selection of house type. Jiangsu Province, Anhui Province and Fujian Province have proposed that when renting public rental houses, families that meet the local housing security conditions and have minor children can be given appropriate care in terms of house type selection according to the number of minor children.
experts suggest that families with three children buy houses at 50% discount
In the past two sessions of the National People’s Congress in 2022, many committee members and representatives also made suggestions on housing support policies for multi child families.
Zhai Meiqing, member of the National Committee of the Chinese people’s Political Consultative Conference and Shenzhen Heungkong Holding Co.Ltd(600162) chairman of the board of directors, suggested to provide affordable housing indicators for families with three children or give housing subsidies to relevant families to reduce housing pressure. Mo Tianquan, a member of the National Committee of the Chinese people’s Political Consultative Conference, suggested that we should study and adjust the housing credit policy of two child and three child families, set a differentiated down payment ratio for different families, and adjust it appropriately according to the number of children born.
Zhou Songbo, deputy to the National People’s Congress, suggested that families with three children who buy commercial houses can be subsidized by returning a certain proportion of mortgage interest, and priority should be given to families with many children who meet the requirements of government indemnificatory housing. Huang Xihua, a deputy to the National People’s Congress, suggested that families with three children and above can return or directly reduce 50% of their mortgage interest. Zhang Zhaoan, a deputy to the National People’s Congress, suggested that in cities where purchase restrictions are not imposed, families with three children should be given priority to purchase houses in cities where purchase restrictions are imposed by discounting the original house price according to the local actual situation.
The suggestions of Liang Jianzhang, founder of Ctrip, who has been paying attention to population issues, are more diversified.
On March 28, Liang Jianzhang led the Yuwa Research Institute to release a report that the number of first marriages in China continued to decline and the age of first marriage increased. It is suggested that reducing the legal age of marriage will help to improve the marriage rate. At the same time, it is also suggested that families with three children enjoy a 50% discount on house prices. Liang Jianzhang is a research professor at Guanghua School of management, Peking University and a co-founder of Ctrip.
Liang Jianzhang believes that the most important restrictive factor of marriage and childbirth is the cost. Buying a house is a big head, and the parenting cost, including children’s education, is also a big head. It suggested increasing the supply of residential land in big cities and giving subsidies to families with children; It is recommended to return 50% of the mortgage interest of two child families, and the mortgage interest of three child families can be fully subsidized. Or in areas with high house prices, the house price of one child can be reduced by 10%, the house price of two children can be reduced by 20%, and the house price of three children can be reduced by 50%.
Liang Jianzhang once said that China’s current fertility cost is almost the highest in the world, but it is possible that China’s efforts to encourage fertility, that is, to solve fertility costs, will also be the highest in the world in the future.
