Beijing to introduce shareable property rights to help some buy homes

A draft of a shared home ownership scheme was released by the Beijing Municipal Commission of Housing and Urban-Rural Development on August 3, 2017 to solicit public opinion, reports the Beijing Daily.

The draft explains that purchasers of commodity housing would share home ownership with the government, transferable after 5 years with the option of then becoming full home owners. The intent behind the plan is to help the "sandwich class" of people whose incomes are too high for public rental housing but not enough to purchase their own homes.

Shared-ownership housing has already been introduced in some cities, such as Shanghai. [Photo: VCG]

What is "shared home ownership?"

According to the draft, purchasers would share the ownership of commodity housing with the government, who would hold a share of the property.

The new policy aims to help alleviate housing difficulties for people who cannot afford ordinary housing while at the same time unable to live in public housing.

The purchaser's share of a house would be decided by the price at which it is sold, in comparison with that of nearby commodity housing of similar quality.

The municipal government would authorize a local housing association to hold its share.

How much would shared-ownership housing cost?

Officials from the Beijing Municipal Commission of Housing and Urban-Rural Development say that shared ownership is meant to make homes affordable for those whose incomes are too high for public rental housing but not enough to buy their own homes.

According to the draft, the price of shared-ownership homes would be lower than nearby commodity housing of similar quality, taking into consideration both construction costs and purchasers' capacity to pay.

Who are allowed to buy shared-ownership housing?

The draft stipulates that only those who have no house under their or their families' names are allowed to apply for homes of shared ownership. Each household is limited to one house. Applicants from single-person households should be at least 30 years old.

As for the allocation of housing, while people living or working in the local district would take precedence, "new Beijingers" would also be taken care of, as officials say that at least 30% of shared-ownership housing would be distributed to non-locals.

Can shared-ownership housing be transferred?

The draft notes that those who purchased their homes less than 5 years ago are not allowed to sell or rent them. After the period of 5 years, purchasers can either sell their homes or buy the rest of their home share from the government, becoming full home owners.

Rentals would be divided between purchasers and the government according to their percentage of share.

Housing associations authorized by the government enjoy the privilege of buying homes sold by purchasers and making them into shared-ownership homes again. Only when they give up can purchasers sell their homes to other qualified households.

Where would shared-ownership housing be located?

Officials say that shared-ownership housing would be located in places with convenient public transportation, complete infrastructure and public service facilities to maintain a balance between the number of workers and residents in the same area.