[Guozun Law Firm] Interpretation of the 2023 Suzhou Affordable Housing Price Subsidy Policy: Latest Guiding Prices and Overview of Home Purchase Preferences

In-Depth Analysis of Suzhou Government Guiding Price Policies for Affordable Housing

In the management of parking spaces and parking fees in residential communities, the government has formulated strict guiding price provisions, aiming to regulate automobile parking fees and parking space rents within communities. In order to improve the efficiency of parking space use, the government encourages the exploration of flexible management methods, such as non-fixed parking spaces and first-come, first-park arrangements. For residential communities adopting other management methods, the monthly cumulative charging amount shall also comply with the requirements of the government guiding price.

With respect to public service charges, the government encourages owners and all parties related to property management to conduct consultations and agree on charging methods. For ordinary residential properties where an owners’ committee has already been established, the public service charges shall, after approval by the owners’ assembly, be agreed upon within the range of the government guiding price announced by the local price authority.

For headquarters enterprises, the Suzhou government has implemented a series of support policies. Qualified headquarters enterprises will enjoy office premises subsidies, with the subsidy amount being 40% of the market guiding rent, up to a maximum of RMB 5 million. Newly introduced headquarters enterprises will also receive an operating contribution award, with 100% rewarded in the first three years and 50% rewarded in the following three years. For recognized leading management and technical talents, the government will provide housing and living subsidies, and grant settlement and home purchase subsidies in accordance with Suzhou’s senior talent introduction policies.

In terms of land transfer and construction requirements, land transfer conditions and construction requirements shall be determined according to the specific plot, and supporting requirements such as public construction facilities and talent apartments shall be clearly specified. The market guiding price for residential land transfer and the one-time quotation range shall be set reasonably. For residential land exceeding the market guiding price, implementation shall be carried out strictly in accordance with the relevant documents. In order to improve the construction quality of commercial residential housing, the government may adopt price-limited sales as a condition for bidding, auction, and listing.

On May 11, Suzhou’s new property market policy adjusted the quotation rules for land transfer. The adjusted price for completion and pre-sale permit was changed from 10% above the market guiding price to 5%–8%, and the valid one-time quotation range was adjusted from 25%–35% above the market guiding price to 10%–15%.

Detailed Interpretation of the Implementing Rules of the Suzhou Property Management Regulations

In terms of property decoration and renovation, when owners or non-owners carry out property decoration and renovation, they shall comply with laws, regulations, and management conventions. Property service enterprises shall discourage and stop violations and promptly report them to relevant departments for handling according to law.

As for the conditions for the generation of members of the owners’ committee, members shall have full civil capacity, comply with laws, regulations, and management conventions, be enthusiastic about public welfare, possess a strong sense of responsibility, and be fair, upright, and honest.

In respect of preliminary property management, newly built residential housing must implement preliminary property management. The construction unit shall select a qualified property service enterprise, sign a preliminary property service entrustment contract, and file it with the real estate administrative authority.

Suzhou Property Market Regulation Policies Upgraded Again, Safeguarding Market Stability in Multiple Dimensions

The Suzhou government has clearly stated that it has no obligation to ensure that developers do not lose money on every parcel of land. If the regulatory effect does not meet expectations, it does not rule out the possibility of further increasing regulatory measures.

Suzhou’s regulatory measures have the significance of a “wind vane,” indicating that overheated cities in the future property market will also successively introduce restrictive measures.

In the process of optimizing property market regulation in many places, the phenomenon of “one-day tour” policies has appeared again, such as the urgent adjustment of purchase restriction policies in Suzhou and Qingdao.

Comprehensive Analysis of Suzhou’s Second Home Down Payment Ratio Policy

For homebuyers with Suzhou household registration, the down payment ratio for purchasing a second property is usually not less than 60% of the total house price. The specific ratio may be adjusted according to the market environment and government regulation.

Suzhou implements a policy of recognizing both house ownership and loan records for home purchases. For the first loan to purchase ordinary housing, the down payment ratio has been raised to 30%. For a first home already purchased under the owner’s name but not through a loan, the loan down payment ratio has been raised from 30% to 50%.

Adjustment of the second-home policy: for resident households that own one home and whose housing loan has not been settled, when applying again for a commercial personal housing loan to purchase ordinary housing, the minimum down payment ratio has been adjusted from 50% to 80%. For resident households owning two or more homes, issuance of commercial personal housing loans is suspended.

Interpretation of the Provisions on Vacant Houses in the Suzhou Property Management Regulations

Regarding the collection of property fees for vacant houses, the owner’s property fee starts to be calculated from the date of delivery and is collected in full after move-in. For vacant properties that are unoccupied or unused for a long period, the owner shall file a record with the property management enterprise and pay the vacant property management fee according to the prescribed or agreed standards.

According to the revised Measures of Jiangsu Province for the Administration of Property Service Charges, the relevant provisions on reduction and exemption of charges for vacant houses have been abolished.

It is provided that after the owner has completed the move-in procedures, even if no one moves in or the property is not used, the property service fee shall be paid by the owner at not less than 70% of the prescribed standard.

Interpretation of Several Opinions of the Suzhou Municipal People’s Government on Accelerating the Development of the Headquarters Economy

The government promotes the corporatization and shareholding transformation of state-owned cultural enterprises, encourages private enterprises to participate in the reform of state-owned cultural units, and encourages social capital to invest in the construction and operation of cultural venues.

Key support is given to fields such as film and television production, publishing and distribution, printing and reproduction, digital content, animation, cultural tourism, arts and crafts, advertising exhibitions, literary and artistic performances, and entertainment and leisure.

The Suzhou Municipal Bureau of Statistics has newly added responsibilities for service industry statistics, in order to better understand and serve the transformation of Suzhou’s economic structure.

Granting or revoking local honorary titles such as Honorary Citizen of Suzhou, as well as other major matters authorized by the Municipal People’s Congress for decision by the Standing Committee of the Municipal People’s Congress.

The Measures of Suzhou Municipality for the Administration of the Use of Non-Local Labor by Units, issued on June 18, 1995.