Major Liberalisation for Non-Resident Buyers
Beijing rolled out a sweeping set of property policy adjustments in August 2026, most notably cutting the social insurance or individual income tax requirement for non-local residents from five years down to just one year — effectively dismantling one of the capital's most significant purchase barriers for new arrivals and migrant workers seeking to buy their first home.
The '87 Policy' Explained
The new package — colloquially dubbed the "87 policy" — goes beyond the social insurance cut. Key measures include:
- Expanded housing provident fund (HPF) withdrawals: eligible for renovation, property management fees, and elder-care-related housing costs — a major expansion of how China's mandatory savings scheme can be deployed
- Relaxed purchase eligibility for ring-road areas: non-locals with one year of social insurance can now purchase homes in previously restricted ring-road zones, dissolving the old "5th Ring Road dam" that had long separated new residents from inner-city housing
- Enhanced HPF loan support: higher loan ceilings and lower downpayment requirements for first-time buyers using HPF financing
Why Now?
The policy follows the July 30 Politburo meeting's call to "stabilise the real estate market," making Beijing the first tier-one city to respond with concrete action. The city is seeking to accelerate transaction volumes and ease inventory pressure without triggering a renewed speculative boom — a delicate balance.
Market Reaction
The CSI Real Estate Index (931775) rose 1.96% on August 12 on the news, with daily trading volume of approximately 10.049 billion yuan. Analysts noted that the policy targets genuine demand rather than investment speculation, making the liberalisation more politically durable.