In a first, Hong Kong residents can co-own a home in Shenzhen with family members as China’s tech hub eases rules
- Eligible Shenzhen hukou holders can apply for subsidised flats under a 50:50 ownership scheme with the government
- Households with three or fewer members can apply for a 65 sq metre (700 sq ft) unit, while those with four or more members can apply for a 85 sq metre unit
Hong Kong residents with family members holding residence permits in Shenzhen are eligible for the first time for government-subsidised housing after authorities in China’s southern metropolis relaxed rules to help low-income families get on the property ladder.
Shenzhen hukou holders who have paid social insurance premiums for at least five years can apply for the subsidised flats under a 50:50 ownership scheme with the government that came into effect on Tuesday, according to a document issued by the Shenzhen Housing and Construction Bureau last month.
Those who own a home in the city or have sold property during the past five years do not qualify. Eligible buyers are required to pay only 50 per cent of the reference price of similar-sized units in the same district.
However, buyers have to pay the remaining 50 per cent of the property value to the government if they want to fully own the unit. Owners can sell their half of the rights to other eligible applicants after five years. The government has yet to release further details of the scheme.
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“This is for those who cannot afford commercial housing, and will not have much of an impact on Shenzhen’s housing market,” said Samuel Kong, managing director for South China at Midland Realty, while adding how the government goes about setting the discounted selling price will depend on the market.
