A number of Chinese cities have adjusted housing provident fund policies to meet the housing needs of residents better and stimulate home purchase demand as part of broader efforts to promote the stable and healthy development of the real estate market.
Cities including Shanghai and Shenyang have clarified that individuals in flexible employment— such as self-employed and freelancers—are now eligible to contribute to the housing provident fund. In principle, they are also entitled to various benefits, including the "provident fund loan support policy for families with multiple children."
"We have now removed the threshold for housing provident fund contributions. The contribution amount ranges from 210 yuan (about 29 U.S. dollars) to a maximum of 6,888 yuan (about 955.7 U.S. dollars). Regardless of income level, individuals in flexible employment can choose a deposit amount that suits them," said Li Xiaoyan, the Fund Raising Department director at the Shenyang Housing Provident Fund Management Center.
According to the new policy, transferring housing provident fund accounts has become more convenient when employment status changes. Individuals in flexible employment who later secure fixed positions can transfer their individual housing provident fund accounts to their new employers. Those who work in other provinces or cities may also apply to transfer their accounts by relevant regulations.
"The number of people engaged in flexible employment is steadily increasing. By optimizing the provident fund contribution policy, the coverage of this group has been significantly expanded. This provides stronger support for their housing security and helps stimulate housing demand and consumption," said Huang Yu, vice-dean of Beijing-based property research institute China Index Academy.
Recently, the municipal government of Wuhan, in central China's Hubei Province, adjusted its housing provident fund loan policy by raising the maximum loan amount for a second home from one million yuan (about 138,754 U.S. dollars) to 1.2 million yuan (about 166,504 U.S. dollars), bringing it in line with the limit for first-time home purchases.
"After learning that the housing provident fund loan for a second home is now aligned with the limit for first-time home purchases, I immediately discussed it with my family, and we believe it’s a good opportunity to buy our second house," said Wu, a Wuhan resident currently house hunting.
Qingdao and Changchun have introduced enhanced support measures to encourage home purchases by families with multiple children. Families applying for housing provident fund loans for a second time and raising two or more children may increase the loan amount by 40 percent.
Additionally, various localities have actively stimulated demand for improved housing by extending the maximum loan age limits. Cities including Beijing, Xi'an, Kunming, and Qingdao have generally raised the upper age limit for loan maturity to 68 for men and 63 for women, aligning with the national policy on gradually delayed retirement. The loan repayment period has also been extended by three years, helping to reduce borrowing costs over time.
"These policies mean that housing provident fund depositors can not only enjoy loans with lower interest rates but also benefit from relatively relaxed application requirements. Lower interest rates and higher loan limits allow depositors to gain more advantages from housing provident fund loans, thereby stimulating their housing consumption demand," said Wu Jing, a professor at the Institute of Real Estate Studies, Tsinghua University.
Chinese cities adjust housing provident fund policies to boost home purchase demand
