Over the past decade, against the backdrop of improving living standards and the market-oriented development of the property service industry, most people have grown accustomed to the rising property fees.

In recent months, however, a wave of “property fee reduction” has swept across, with some cities introducing new regulations to offer discounts on property fees for vacant homes. Driven by new government-guided pricing regulations, many property service companies have actively responded to homeowners’ calls for fee reductions, with some residential areas seeing decreases of over 50% in property fees. Some property companies have even introduced a “zero property fee” model to improve collection rates or bid-winning probabilities.

As competition in the property service industry intensifies, will property fee reductions become a trend?

Significant Reductions in Property Fees for Vacant Homes in Multiple Regions
Recently, Zhenjiang City in Jiangsu Province introduced new regulations to provide discounts on property fees for residential properties that have been vacant for more than six consecutive months.

A First Financial News reporter learned from the Zhenjiang Municipal People’s Government’s official website that starting from February 1, 2025, residential properties in Zhenjiang City that have been vacant for more than six consecutive months will be eligible for a property fee discount of up to 30%.

The city’s official website also stated that the introduction of this new regulation is a concrete measure to implement the central government’s policy of “stabilizing land prices, stabilizing housing prices, and stabilizing expectations,” and it has positive significance for promoting the steady development of the local real estate market.

The reporter understands that the current “Administrative Measures on Property Service Fees in Jiangsu Province” (2018) do not explicitly abolish discounts on property fees for vacant homes. Zhenjiang’s discount on property fees for vacant homes at the municipal level may prompt more cities to follow suit. For example, the Development and Reform Commission of Jurong, a county-level city, recently stated that although Jurong is not within the scope of implementing the new property fee policy in Zhenjiang City, it has already held policy adjustment symposia.

In fact, Zhenjiang is not the first city to offer discounts on property fees for vacant homes. In recent years, to boost the real estate market, many cities have introduced similar measures.

In June 2024, Lanzhou New Area in Gansu Province introduced 12 new real estate policies, including a provision that for vacant residential properties that have not been occupied for more than six consecutive months, the property fee will be reduced to 50% of the standard rate upon written application by the homeowner or user.

A year ago, Qingdao also implemented a new property fee policy, stating that for residential properties that have been vacant for six consecutive months (including) or more, the public service fee (including elevator maintenance fee) for property services will be reduced to no more than 60% of the agreed-upon rate in the initial property service contract, starting from the date of vacancy.

According to incomplete statistics, more than ten cities, including Wuxi, Suqian, Yangzhou, Changsha, Weifang, Shijiazhuang, Changzhou, and Yantai, have announced discounts on property fees for vacant homes.

Some Property Companies Voluntarily Reduce Fees
In addition to government regulations reducing property fees for vacant homes, over the past six months, many property service companies have reduced property fees in response to homeowners’ calls for fee reductions, taking into account their own operating conditions.

For example, Chongqing Jialian’an Property Management Co., Ltd., the property service company for the Fenghuashu residential area in Chongqing, announced that due to requests from 20% of homeowners to lower property fees, after negotiation, the residential property fee will be reduced from 1.8 yuan/square meter/month to 1.3 yuan/square meter/month starting from January 1, 2025.

At the end of 2024, the customer service center of the Jinyueshan project in Chongqing also issued a notice to all homeowners, stating that in response to a petition signed by 20% of homeowners requesting an adjustment to lower property fee standards, the company, in response to homeowners’ calls, has reduced the property fee for high-rise buildings from 2.4 yuan/square meter/month to 1.9 yuan/square meter/month, and for townhouses and villas, from a maximum of 4.5 yuan/square meter/month to 2.09 yuan/square meter/month, with the largest reduction exceeding 50%.