"14th Five-Year Plan", what changes have been made to the incentive measures for local prefabricated buildings

Although prefabricated buildings have developed rapidly, they are still in the promotion stage, and the degree of policy dependence is still relatively high. During the "Thirteenth Five-Year Plan" period, various localities launched incentive measures for prefabricated buildings in terms of land, pre-sale, finance, finance, transportation, environmental protection, and awards, and even some localities even offered "real money" to subsidize, which effectively promoted the development of prefabricated buildings. 

Recently, many places have announced the latest prefabricated building development policies, most of which are named after "further promotion", "further development" and "high-quality development". At the same time, the policies related to prefabricated buildings issued by these places around 2017 were also repealed accordingly.

Compared with the old and new policies, with the continuous development of prefabricated buildings, local governments have made some adjustments in incentive measures. For example, for the pre-sale of prefabricated building commercial housing, Beijing and Hainan have both launched relatively strong measures before, but the previous practice has not been followed in the latest policy this year.

The policy issued by Beijing in 2017 makes it clear that commercial housing development projects using prefabricated buildings are not subject to the restrictions on the progress of the project construction image when handling housing pre-sale. Compared with many places that will reach ±0 or the total progress reaches a certain requirement as a pre-sale condition, the attractiveness of Beijing's policy is still very large. In April, Beijing's latest policy removed the incentive.

However, it is worth noting that Beijing issued a request for comments on a non-working day a month later. The core content is only one sentence - for commercial housing development projects using prefabricated buildings, there is no construction image progress requirement when applying for pre-sale licenses. This removed incentive will be reinstated.

As for Hainan, the policy released in 2017 made it clear that for commercial housing that meets the requirements, pre-sale registration can be applied for housing with more than 8 floors and more than two-thirds of the floor, and it is allowed to include the investment of prefabricated components in the total investment of the project construction and into the progress measurement. Projects with more than 10 floors can apply for subsection acceptance of the main structure. In May of this year, the latest policy issued by Hainan did not include similar pre-sale incentives.

In terms of building area incentives, Beijing has also made adjustments. For example, although the horizontal projected area of the outer leaf plate of the sandwich thermal insulation wall is still not included in the building area, non-government investment projects that are not within the scope of implementation, voluntarily adopting prefabricated buildings will not be able to continue to receive no more than 3% of the area reward.

In addition, Beijing's latest policy has added some other incentives. For example, prefabricated construction projects can enjoy high-quality and high-price policies in the process of land bidding, auction and listing or when going through house sales procedures. Support prefabricated construction enterprises to raise funds by issuing bonds and other means; provide green financial support for prefabricated construction projects that meet the green building star standard.

Hainan's latest policy has increased fiscal and financial tax support. For example, cities and counties can consider giving financial incentives to projects that meet the requirements of assembly rate and other requirements; for those who sell self-produced new wall materials and meet the tax policy regulations, the policy of 50% VAT refund immediately after collection is implemented. In addition, Hainan will also "link" prefabricated buildings with credit records, and relevant enterprises with innovative achievements in the design, production and installation of prefabricated buildings can be credited with good credit records and receive bonus points.

In Bozhou, in northern Anhui, the latest incentive measures for prefabricated buildings have also been adjusted. For real estate enterprises, the payment of land transfer fees in installments has been cancelled, and pre-sale support has been increased accordingly. For example, the 2017 policy only proposes that development units participating in the construction of prefabricated building projects will be given priority to go through procedures such as qualification upgrades, continuations, and pre-sale licenses. The latest policy further clarifies that the pre-sale license can be obtained if the investment in development and construction reaches more than 25% of the total project investment, and the construction progress and completion delivery date have been determined. In addition, for commercial housing projects that meet relevant requirements, the total amount of key supervision of pre-sale project funds can be reduced by 20%.

Judging from the adjustment of incentive measures for prefabricated buildings in some of the above-mentioned places, on the one hand, some cities with rapid development of prefabricated buildings have relatively reduced incentive measures. On the other hand, many incentive measures are closely related to the local real estate market regulation policies, such as pre-sale in advance, payment of land transfer fees in installments, and increasing the loan amount for home buyers, etc. Such policies may also be dynamically adjusted in the future.