Shenzhen purchase restriction rules

The Shenzhen Municipal Government has recently issued the Notice on Further Regulating the Sales Behavior of Commercial Properties, which clearly stipulates that since September 7, 2021, families purchasing a second or more housing units in Shenzhen are required to provide proof of completion of personal income tax or proof of payment of social security and to pay personal income tax or social security continuously for 1 year in Shenzhen before they can purchase.

In addition, the Shenzhen municipal government also stipulates that non-Shenzhen resident families purchasing commercial housing are required to provide proof of continuous payment of social security in Shenzhen for one year. At the same time, the Shenzhen municipal government will also strengthen the supervision of the real estate market, crack down on illegal behavior in the real estate market to protect the rights and interests of consumers.

Operating steps

1. Provide proof of personal income tax completion or proof of social security payment. Families purchasing a second home or above are required to provide proof of completion of individual income tax or proof of payment of social security, which is required to have paid individual income tax or social security continuously for one year within the city of Shenzhen.

2. Provide proof of continuous payment of social security in Shenzhen for 1 year. Non-Shenzhen resident families purchasing commercial properties are required to provide proof of continuous payment of social security in Shenzhen for 1 year.

3. Choose the right housing. Buyers need to choose the right housing according to their needs and financial strength.

4. Pay the down payment. Buyers need to pay the down payment after the signing of the purchase contract, the down payment is generally 20% to 30% of the price.

5. Loan procedures. Buyers need to apply for a loan as soon as possible after signing the purchase contract to ensure timely repayment.

Impact analysis

The purchase restriction issued by the Shenzhen municipal government will have a certain impact on both homebuyers and the real estate market.

For homebuyers, the purchase restriction order will strengthen the threshold of entry for homebuyers, making it more difficult to purchase a home as more supporting documents are required for families purchasing a second home or above and for non-Shenzhen resident families. But it will also help curb speculation and protect consumer rights.

For the real estate market, the purchase restriction will help stabilize home prices, curb speculation and reduce fluctuations in the real estate market. At the same time, strengthening the regulation of the real estate market will also help protect consumer rights and promote the healthy development of the real estate market.