Core Viewpoint - The new housing policy aims to alleviate the difficulties faced by first-time homebuyers, stabilize the real estate market, and promote economic growth in response to a significant decline in housing sales and prices [1][2][3] Policy Background - The introduction of the new housing policy is a necessary measure following a deep adjustment in the real estate market, with national housing sales area down 8.7% and sales revenue down 12.3% in the first half of 2025 [2] - The real estate sector contributes 17.2% to GDP and supports over 40 related industries, highlighting its critical role in the economy [2] Series of Benefits - The new policy includes multiple adjustments to financing, tax, and purchase requirements, aimed at revitalizing the housing market [4] - The minimum down payment for first-time homebuyers has been reduced from 30% to 20%, with some cities allowing as low as 15% [6] - The maximum interest rate for first-time home loans has been set at 3.6%, a reduction of 1.2 percentage points from previous levels [6] - The maximum public housing loan amounts have been increased to 120 million in first-tier cities, 100 million in second-tier cities, and 80 million in third and fourth-tier cities [6] - Some cities have relaxed purchase restrictions, making it easier for new residents to qualify for home purchases [7] - The tax rate for first-time home purchases has been lowered from 1.5% to 1%, and the exemption period for value-added tax on second-hand homes has been reduced from 5 years to 2 years [9] Official Interpretations - The policy defines "first-time homebuyers" as families with no more than one home, aged 22 to 45, with income at or below the local median [10] - The policy will be implemented in phases, starting with 22 cities on July 15, 2025, and expanding to others by October 1 [10] - The application process for the new policy is straightforward, requiring basic documentation such as proof of income and housing status [11] Future Outlook - The real estate market may see a gradual easing of price controls, allowing for a potential 5% price adjustment in certain areas [16] - There will be significant investment in the long-term rental apartment market, providing more housing options for those unable to purchase homes [16] - Policies encouraging elderly housing exchanges, such as "housing for pension," are expected to release approximately 12 million housing units [16] - The trial expansion of real estate taxes is anticipated, targeting families with three or more homes [16]