Revised Housing Provident Fund Rules Take Effect, Expanding Withdrawal Scope from 6 to 9 Categories

The Housing Provident Fund (HPF) system, a key component of China's urban housing policy, directly affects the interests of the general public. The newly revised Regulations on the Administration of Housing Provident Fund (hereinafter referred to as the Regulations) officially came into effect on September 20. According to information released at a press conference held by the State Council Information Office, the Regulations will expand the system's coverage and broaden the scope of withdrawal and usage. By optimizing the contribution, usage, returns, and management of the Housing Provident Fund, the new rules aim to further leverage the system's role in addressing housing issues, enhancing the efficiency of fund utilization while helping to stabilize the real estate market.

"The newly revised Regulations actively respond to the changes and developments in China's real estate market. With the primary goal of meeting the diverse housing needs of contributors at different life stages, the Regulations optimize the contribution, usage, returns, and management of the Housing Provident Fund to further strengthen its role in solving housing problems," said Zhang Xuetao, Director of the Real Estate Market Supervision Department of the Ministry of Housing and Urban-Rural Development.

Expanding Coverage to Flexible Employment Groups

In recent years, China's economic and social development has seen significant changes in employment structure, with the number of flexible workers growing rapidly. The Decision of the State Council on Amending the Regulations on the Administration of Housing Provident Fund (hereinafter referred to as the Decision) clarifies that individual business owners, part-time employees, and other flexible workers may voluntarily contribute to the Housing Provident Fund and enjoy corresponding policy support in accordance with regulations.

"We will expand the coverage of the Housing Provident Fund system, supporting individual business owners, part-time employees, and other flexible workers in voluntarily contributing to the fund, thereby further enhancing the system's inclusiveness," Zhang Xuetao explained.

Broadening Withdrawal and Usage Scope

The scope of Housing Provident Fund withdrawals has been a widely discussed issue. The newly revised Regulations expand the withdrawal and usage scope, increasing the number of eligible withdrawal scenarios from six to nine.

"These changes include removing the previous threshold that required rent payments to exceed a specified proportion of household income for rent withdrawal eligibility, and adding new scenarios such as withdrawing funds for home decoration and paying property management fees for self-occupied housing," stated officials from the Ministry of Justice and the Ministry of Housing and Urban-Rural Development in response to questions regarding the Decision.

Zhang Xuetao noted that the Ministry of Housing and Urban-Rural Development will further leverage the role of the Housing Provident Fund to support renting, purchasing, repairing, and maintaining homes, enabling the fund to serve housing consumption throughout the entire life cycle.

Expert Analysis: Policy Supports Full Lifecycle Housing Consumption

Yan Yuejin, Vice President of the Shanghai E-House Real Estate Research Institute, pointed out that expanding the withdrawal and usage scenarios from six to nine not only responds to the current need for stabilizing and recovering the real estate market but also aligns with the macroeconomic policy direction of expanding domestic demand. "From an overall perspective, the policy now covers four major areas—renting, purchasing, repairing, and maintaining homes—essentially completing the chain of housing consumption across the full life cycle."

Zhang Bo, Research Director of the 58 Anjuke Research Institute, analyzed that the core effect of the newly revised Regulations is to reduce the housing costs for first-time buyers, new citizens, and home-swapping families, improve the circulation efficiency of second-hand homes, and unblock the "sell old, buy new" replacement chain. "Data shows that in cities where the benefits of the Housing Provident Fund have been effectively implemented, indicators such as property viewings, inquiries, and site visits among replacement customers have shown positive trends."

Local Governments Accelerate Policy Optimization

Since the beginning of this year, numerous cities across the country have intensively introduced optimized and adjusted policies for the Housing Provident Fund. For example, Beijing has explicitly supported withdrawals for home decoration; Nanjing has relaxed conditions for withdrawals due to major illnesses; and Changsha has expanded the list of major illnesses eligible for withdrawals to 35 types.

According to incomplete statistics from the China Index Academy, as of now, over 850 policies have been introduced nationwide to optimize and adjust the real estate market. Among these, Housing Provident Fund policies have been the most frequently adjusted, with over 440 adjustments. The main directions of these adjustments include raising the ceiling on Housing Provident Fund loan amounts, broadening the scope of withdrawal and usage, optimizing contribution policies for flexible workers, and improving usage policies for non-local workers.

"With the official implementation of the newly revised Regulations, more cities may accelerate the optimization of Housing Provident Fund policies and explore additional directions for fund utilization, thereby better fulfilling the fund's role as a housing safeguard," said Chen Wenjing, Director of Policy Research at the China Index Academy.

(Reporter: Chen Hanyang) Source: Economic Information Daily