Beijing Eases Housing Rules, Lifts Purchase Limits for Eligible Families Outside Fifth Ring Road

Credit: CFP

TMTPOST --

Beijing on Friday unveiled a fresh round of housing policy adjustments aimed at stimulating demand and improving living conditions, removing purchase limits for eligible families buying homes outside the city’s fifth ring road and expanding financial support through provident fund loans.

Beijing’s housing authorities announced that eligible families—either Beijing-registered or non-registered with at least two years of continuous social insurance or income tax payments—can now buy unlimited new or second-hand homes outside the fifth ring road. Single adults will still be subject to the same purchase limits as resident families.

The measures also broaden support for first-home provident fund loans. Borrowers and co-borrowers who do not own property in Beijing but have previously taken out—and fully repaid—a provident fund loan elsewhere will now be classified as first-home buyers, rather than second-home buyers. This reclassification could significantly lower costs. For instance, on a 4-million-yuan ($556,986) home with a 1-million-yuan, 30-year provident fund loan, the new policy could cut the down payment by as much as 600,000 yuan and reduce monthly repayments by up to 253 yuan.

For second-home buyers, the maximum provident fund loan has been raised from 600,000 yuan to 1 million yuan, easing the path for families seeking better housing. Those qualifying under green building initiatives or multi-child family policies could see their loan ceilings increase by another 400,000 yuan, bringing the maximum to 1.4 million yuan. The minimum down payment for second-home provident fund loans has also been standardized at 30 percent citywide, eliminating the higher 35 percent requirement for properties within the fifth ring road.

Analysts view the latest move as a targeted effort to stabilize the market. “This policy is a significant step in further easing real estate restrictions after the high-level meeting on July 30,” said Yan Yuejin, research director at Shanghai-based E-house China R&D Institute. “It reflects Beijing’s emphasis on balancing jobs and housing, while showing that policy reserves remain and implementation is precise. This will have a positive impact on market activity and the sector’s healthy development.”

The capital’s measures align with a broader national push to shore up the housing market in the second half of 2025. On August 5, authorities in East China’s Jiangsu Province emphasized sustaining stability, accelerating high-quality urban renewal, increasing the supply of quality housing, and boosting demand through improved housing voucher schemes. Similarly, on July 28, Yunnan Province pledged to promote a balanced, structurally sound, price-stable, and healthy real estate market.

Beijing’s policy package is widely seen as both a signal of confidence and a pragmatic step to address residents’ housing needs while curbing further market slowdown.

(Note: 1 USD equals about 7.25 yuan)