On February 10, the 21st Century Business Herald reporter learned from insiders that relevant departments recently issued relevant opinions on the supervision of pre-sale funds of urban commercial housing. It is understood that the biggest difference between this document and the relevant provisions in the measures for the administration of pre-sale of urban commercial housing issued in 1994 is that the provisions on pre-sale funds are clearly unified across the country, which is conducive to standardizing the use of pre-sale funds and consolidating the regulatory responsibilities of relevant local departments.
The latest document specifies that the supervision amount of pre-sale funds shall be approved by the municipal and county-level housing and urban rural construction departments according to the project contract and project cost, so as to ensure the funds required for the completion of the project. The remaining funds after reaching the supervision amount can be withdrawn and used by the real estate enterprises.
After the event of well-known real estate enterprises, some local governments have the problem of over supervision of pre-sale funds. The above documents will correct these behaviors, which will help some real estate enterprises facing difficulties in funds to alleviate the situation of capital flow.
pre sale funds meet the national unified regulations
The measures for the administration of pre-sale of urban commercial housing issued in 1994 stipulates that “the specific measures for the supervision of pre-sale funds of commercial housing shall be formulated by the real estate management department”. At the same time, “the construction administrative departments of provinces, autonomous regions, municipalities directly under the central government or the real estate administrative departments may formulate detailed rules for implementation in accordance with these measures.”
Zhou Yue, chief fixed income analyst of Zhongtai Securities Co.Ltd(600918) said that from the perspective of pre-sale fund supervision, the lack of unified national regulations means that in terms of pre-sale fund supervision, all regions basically implement the idea of “one city and one policy”, that is, all regions will basically issue corresponding “measures for the supervision and management of pre-sale funds” and “detailed rules for the implementation of the supervision and management of pre-sale funds”, As a result, the management methods of pre-sale funds vary greatly.
According to the actual situation of various regions, some regions fully supervise the pre-sale funds, and some regions focus on the supervision of funds. After the event of well-known real estate enterprises, the pre-sale funds were 0 appropriated. After the latest document uniformly stipulates the pre-sale funds throughout the country, it is expected that the implementation of too strict in some areas will be improved and some funds will be released.
It is understood that the latest documents make it clear that the pre-sale funds of the project, including deposit, down payment and house purchase funds, need to be fully deposited in the pre-sale fund supervision account to ensure that the special funds are used for project construction, construction funds and other related expenses.
As for the allocation progress of pre-sale funds, the document clearly stipulates that it should be carried out according to the project construction progress, which shall be determined by the housing and urban rural construction department. At the same time, the new document requires to strengthen information sharing. Commercial banks should strengthen account monitoring in accordance with the tripartite supervision agreement and reconcile with the housing and construction department on a regular basis.
The above provisions are conducive to improving the previous unclear responsibilities of local regulatory authorities for the supervision of regulatory accounts, and urge the municipal and county-level housing and urban rural construction departments to perform the supervision responsibilities of pre-sale funds.
optimize the supervision of pre-sale funds in multiple places
The 21st Century Business Herald reporter noted that since the second half of 2021, the uncompleted houses under construction caused by the tight capital chain of real estate enterprises have continued to appear, which has attracted attention to the supervision of pre-sale funds. Subsequently, new regulations on the supervision of pre-sale funds were issued in many regions, including Beijing and Chengdu.
For example, on November 4, 2021, the Beijing Municipal Commission of housing and urban rural development, together with the Beijing Banking and Insurance Regulatory Bureau and the Ministry of people’s Bank of China (Beijing), issued the public exposure draft of the measures for the supervision and administration of pre-sale funds of commercial housing in Beijing (revised in 2021), which shows that it is necessary to ensure that the pre-sale funds are “managed or not”.
Chi Guangsheng, chief fixed income analyst of Anxin securities, concluded that the new regulations on pre-sale funds in Beijing focus on “optimization” clauses, with “loose” and “tight” directions: on the one hand, some clauses are tightened, including clarifying the lower limit of key regulatory funds, emphasizing that the deposit needs to be directly deposited into the regulatory account, and proposing to implement closed management of risk projects; On the other hand, some provisions are relaxed, including allowing development enterprises to apply for funds according to a single building or multiple buildings, shortening the loan time limit, etc.
In terms of the pre-sale fund supervision limit mentioned in the latest documents mentioned above, Beijing stipulates that on the basis that the key supervision limit of the project shall not be less than the limit of 5000 yuan per square meter, each district can determine the key supervision limit of each project according to the “three lines and four grades” management of the development enterprise and the factors such as the enterprise’s credit level, operation status and delivery conditions.
However, according to Zhou Yue’s summary, the determination methods of the pre-sale supervision quota of commercial housing in various regions are different. At present, it mainly includes several modes, such as taking the total pre-sale amount as the benchmark, taking the total project cost as the benchmark, and taking the construction cost per square meter as the benchmark.
The notice on further clarifying matters related to the supervision of pre-sale funds of commercial housing issued by Chengdu on November 3, 2021 proposed that the pre-sale commercial housing projects with major operational risks should be included in the key supervision of districts (cities) and counties, and the designated units should set up a special supervision account (the supervision bank remains unchanged in principle), and the supervision department should be determined to strictly supervise the collection, deposit and withdrawal of pre-sale funds, After reviewing the purpose of each fund, it shall be directly transferred to the bank account of the payee such as construction and materials.
“In recent years, Beijing, Chengdu and other places have optimized the supervision policy of commercial housing pre-sale funds, refined the amount and retention proportion of pre-sale supervision funds, and more and more cities allow real estate development enterprises to exempt the same amount of capital supervision with the letter of guarantee issued by the bank, so as to alleviate the pressure on the capital chain of enterprises.” Zhou Yue said.
Yin Zhongli, director of the real estate finance research center of the Institute of finance of the Chinese Academy of Social Sciences, previously wrote in the 21st Century Business Herald that in terms of pre-sale fund management, all localities should take effective measures to improve the efficiency of fund use. We should not only strictly supervise the pre-sale funds to prevent the uncompleted project, but also take into account the current shortage of funds of real estate developers, The housing regulatory authorities in some areas have made active exploration.
the real estate industry continues to welcome positive
The 21st Century Business Herald reporter noted that after the central economic work conference set the tone of “supporting the commercial housing market to better meet the reasonable housing needs of buyers, and promoting the virtuous circle and healthy development of the real estate industry due to urban measures”, this is another positive for the real estate industry.
In December last year, the central bank and the China Banking and Insurance Regulatory Commission issued the notice on doing a good job in M & a financial services for risk disposal projects of key real estate enterprises, encouraging banks to carry out M & a loan business in a stable and orderly manner, and focusing on supporting high-quality real estate enterprises to merge and acquire high-quality projects of large real estate enterprises in danger and difficulties.
Subsequently, the central bank and SASAC organized a meeting of high-quality large private enterprises, central enterprises and state-owned enterprises in the real estate field to convey the policy guidance of encouraging market subjects to merge and acquire high-quality projects of large real estate enterprises in danger and difficulties in accordance with the principles of marketization and rule of law. In addition, the central bank and the China Banking and Insurance Regulatory Commission have also organized meetings of major banks to promote banks to actively and steadily promote M & a loan business. At the same time, large real estate enterprises with risks and difficulties will not blindly withdraw and cut off loans.
On February 8, the central bank and the China Banking and Insurance Regulatory Commission jointly issued the notice on excluding the loans related to affordable rental housing from the concentration management of real estate loans, which made it clear that the loans related to affordable rental housing projects were not included in the concentration management of real estate loans, and encouraged banking financial institutions to follow the principles of legal compliance, controllable risk and commercial sustainability, Increase support for the development of affordable rental housing.
People close to the regulators said that the above notice released a positive signal of increasing financial support for the development of indemnificatory rental housing, which is conducive to promoting the specific implementation of the requirements of the opinions on accelerating the development of indemnificatory rental housing on increasing financial support for indemnificatory rental housing, supporting the construction of China’s housing security system and promoting the establishment of multi-agent supply The housing system of multi-channel guarantee and simultaneous rent and purchase has promoted the steady and healthy development of the real estate market.
National measures for the supervision of pre-sale funds of commercial housing were introduced, and real estate enterprises are expected to obtain more liquidity
