Hainan Further Optimizes and Adjusts Property Market Policies to Support Revitalization of Existing Land and Properties

On August 15, the Hainan Provincial Department of Housing and Urban-Rural Development and other authorities issued a notice on further optimizing and adjusting relevant regulatory policies:

(1) Promoting the Purchase of Existing Commercial Housing for Affordable Housing
Based on local demand, Hainan will steadily advance the purchase of existing commercial housing for use as affordable housing, urban village renovation resettlement housing, and dilapidated housing reconstruction. Housing provident fund surplus income will continue to be used to purchase a moderate amount of existing commercial housing for public rental housing. The province will explore the use of affordable housing refinancing loans to acquire existing commercial housing for sale or rental as affordable housing. For properties purchased as affordable rental housing, area standards may be appropriately relaxed.

(2) Revitalizing Existing Commercial Land and Office Buildings
The policy supports repurposing commercial land for encouraged industries and converting it into affordable housing or rental housing in accordance with laws and regulations. Office buildings that meet mandatory residential design standards and pass expert review may be converted into rental or affordable housing. Specific measures will follow regulations from planning and housing authorities.

(3) Encouraging "Purchase Instead of Construction" for Resettlement
In cities with high unsold housing inventory, urban renewal projects involving resettlement should prioritize purchasing existing homes ("purchase instead of construction") or using housing vouchers. Purchasing commercial housing for urban village renovation resettlement is also encouraged.

(4) Abolishing Ordinary and Non-Ordinary Housing Classification
Hainan will no longer distinguish between ordinary and non-ordinary housing. However, under Article 8(1) of the Interim Regulations on Land Appreciation Tax, developers selling standard residential properties with appreciation not exceeding 20% of deductible costs remain exempt from land appreciation tax, following Hainan’s 2019 standards.

(5) Supporting Multi-Child Families in Home Purchases
Families with two or more children applying for commercial loans to buy homes will have one fewer property counted in their ownership record if they already own a home in the same city/county. Banks will implement mortgage policies based on official ownership verification.

(6) Tax Refunds for Home Upgrades
Residents selling their homes and repurchasing within the same city/county within one year may receive a refund on personal income tax paid from the sale, per national regulations.

(7) Talent Housing Subsidies
Talents who have received local home purchase subsidies may continue applying for such incentives. Those renting affordable housing may also apply for rental subsidies.

(8) Promoting Prefabricated Construction
Projects unsuitable for prefabricated construction due to technical reasons must submit alternatives to the provincial office for expert review.

(9) Pilot Optimization of Pre-Sale Policies
Hainan maintains its fully furnished housing policy, with Haikou leading a pilot to optimize the timing of completed-home sales. The pilot plan will be submitted to the provincial housing authority for approval.