As September begins, a wave of new property policies is being implemented across various regions. Areas like Hainan, Chengdu, and Xi'an are broadening the scope of housing provident fund usage, ramping up support for housing consumption while extending its reach into housing management. Concurrently, provinces and cities such as Henan, Wuhan, and Haikou are deploying a more comprehensive set of policy measures to lower purchasing barriers, offer various subsidies, and manage supply increments, all designed to invigorate the market and facilitate the transition towards a new development model for the real estate sector.

Industry experts observe that, compared to past initiatives, this round of local policies is characterized by a dual-pronged approach targeting both the supply and demand sides. The implementation is notably more meticulous, with a strategic shift from merely "easing restrictions" to actively "providing incentives." With the support of these multiple policies, the traditionally strong "Golden September and Silver October" sales period is anticipated to witness sustained recovery from a stable base.

Provident Funds Diversify to Support Housing Consumption

On September 7th, the Hainan Provincial Housing Provident Fund Management Bureau released a draft guideline on its official website proposing to initiate a business for withdrawing housing provident funds for home renovation. This initiative aims to alleviate the financial burden on contributors for renovating their self-occupied homes. According to the draft, households without an outstanding provident fund loan, and whose property has been registered or who have obtained the real estate ownership certificate (with a six-month waiting period for second-hand homes), are eligible to apply for withdrawal to renovate one self-occupied residence within the province. The withdrawal amount is calculated at 1000 yuan per square meter of building area, with a maximum limit of 150,000 yuan per application.

In fact, since the mid-August revision of the national-level "Regulations on the Administration of Housing Provident Funds," there has been a growing trend of initiatives like Hainan's to expand the purpose of provident funds, better support housing consumption, and leverage their inclusive financial role. For instance, the ten new measures for the real estate market introduced in Chengdu at the end of August lowered the minimum down payment ratio for provident fund loans on new homes from 20% to 15%. This policy also introduced loan interest subsidies for the first time, providing a 20% subsidy on actual monthly interest expenses, with a cumulative cap of 25,000 yuan. Additionally, for qualifying new homes, the loan amount can be increased by 20% above the current maximum limit.

Around the same period, Xi'an's new housing policies not only increased the maximum loan amount but also extended the timeframe for withdrawing provident funds from 5 years to 10 years. These funds can now also be used jointly for down payments. Furthermore, the permitted purposes for these funds have been expanded to include costs for installing or updating elevators. Zhengzhou, on its part, reduced the minimum down payment for provident fund loans on second-hand homes from 30% to 20% and introduced an intergenerational family mutual aid loan mechanism.

Wuhan's eight new measures, released in early September, also specify the removal of the annual withdrawal limit for commercial housing loans on first homes, allowing for monthly withdrawals after six months of normal repayments, thereby easing the monthly payment pressure on first-time buyers. The policies also permit cross-city provident fund loans from anywhere in the country, and offer a 1% subsidy on the total house price for purchases in new urban districts, with a total subsidy pool of 100 million yuan.

It is evident that provident fund policies have become a primary focus of policy adjustments this year. Zhang Bo, Dean of the 58 Anjuke Research Institute, notes that these local policies leverage tools such as lower down payments, interest subsidies, renovation withdrawals, and cross-regional recognition to directly benefit residents at a relatively low fiscal cost. Chen Wenjing, Research Director at the China Index Academy, adds that this year's revision of the "Housing Provident Fund Management Regulations" has provided clear direction for local optimizations. Cities are using these funds and purchase subsidies to more intuitively and effectively reduce the cost of home buying and stimulate housing demand. She predicts more cities will follow suit, optimizing provident fund policies to better support housing consumption.

Policy Focus Shifts from Easing to Subsidies and Incentives

Beyond provident fund policies, regions are also deploying a broader "policy package" for the housing market. On September 8th, Henan Province introduced 15 new measures structured around three core objectives: controlling supply increments, reducing inventory, and optimizing supply. To de-stock, the province is utilizing purchase subsidies, loan interest discounts, optimizing the recognition of housing ownership units, supporting the acquisition of existing commercial housing, and expanding the use of provident funds. On the supply side, the policy explicitly suspends land supply to counties and cities with a de-stocking period exceeding 18 months, promotes a "people-oriented housing supply" strategy, and emphasizes stricter pre-sale management with higher thresholds, while encouraging the sale of completed properties.

Haikou's seven new measures, released in early September, cover a wide array of areas. These include purchase qualifications for registered individuals, active-duty military personnel, and employees of companies registered in Hainan; allowing families with multiple children to purchase additional homes; and policies for "bartering old for new" homes. Adjustments to the scope of home purchase counts and optimization of parking space sales are also included, precisely lowering purchase thresholds across multiple dimensions, releasing diverse demand, and smoothing the chain for housing upgrades.

Wuhan's eight new measures, besides provident fund usage and purchase subsidies, also deal with adjusting school enrollment procedures linked to home purchases, offering preferential policies for underground space land prices, supporting the acquisition and renovation of existing commercial and office properties, and strengthening market regulation.

Compared to previous cycles, this recent wave of local housing policies demonstrates several new characteristics. Zhang Bo believes that the successive implementation of new policies in places like Chengdu, Wuhan, Henan, and Hainan, aligned with the dynamics of the new real estate cycle, confirms the overarching goal of market stabilization remains unchanged. The policies are no longer simple, single-point easing measures. Instead, comprehensive packages like Henan's "15 articles" and Wuhan's "8 articles" address both demand and supply sides, facilitate inventory liquidation, and even adjust land supply based on a city's de-stocking cycle. "Notably, local governments are also aligning with the national reform direction set by the '828 policy,' with many beginning to draft detailed rules for pre-sale reform."

Chen Wenjing also points out that current policy implementation is more refined. For example, Haikou has included specific groups in its purchase eligibility criteria, and Shanghai is offering subsidies of up to 80,000 yuan for buyers who meet certain "trade-up" conditions. Different cities are targeting subsidies to specific groups based on their unique market conditions, accurately catering to improving housing demand. "Simultaneously, many recent policies have shifted from easing restrictive measures to providing subsidies and incentives," she analyzes. This is because, after multiple rounds of adjustment, most cities have largely liberalized restrictive policies, leaving limited room for further relaxation.

Zhang Bo concludes that "stabilizing the property market" is now more about mitigating systemic risk than using it as a short-term growth engine. Current subsidies are akin to steady, targeted irrigation aimed at stabilizing the market. The overall trend is for the central government to establish systems and manage risks, while local governments focus on activating reasonable housing consumption.

With the support of multiple policies, industry insiders believe "Golden September and Silver October" could see continued bottoming-out and recovery, though market divergence will persist. Zhang Bo noted that the "828 policy" push for completed properties helps alleviate buyers' fears of stalled projects. The "inspect before you pay" logic reshapes purchasing decisions, but the requirements for pre-sale caps and full fund supervision may compress the launch pace of high-turnover projects. While this might cause a short-term contraction in new home supply, its impact on the latter half of this year is relatively limited. Market divergence will be the main storyline, with first and strong second-tier cities' rigid and improving demand groups fully poised to benefit from the ongoing subsidy policy dividends.