Weekly report of the real estate industry: the policy continues to release positive signals, and the real estate is expected to be repaired by valuation

Market Review

Last week (2.14-2.20), the Shanghai Composite Index rose 0.8%, the Shanghai and Shenzhen 300 index rose 1.08%, and the real estate board fell 0.73%. The real estate sector lost 1.53 percentage points to the Shanghai Composite Index and 1.81 percentage points to the Shanghai and Shenzhen 300 index.

Industry dynamics

On February 18, Evergrande held 340 million yuan of equity in its subsidiary, which was frozen by Shenzhen court for property preservation. The freeze was based on the property preservation action of (2022) Yue 03 Zhibao No. 46. The executee Evergrande Real Estate Group Co., Ltd., the subject of execution Zhongshan haoying Real Estate Development Co., Ltd. and Evergrande Real Estate Group Co., Ltd. invested a total of 400 million yuan, of which 339 million yuan was frozen, with an equity freeze ratio of 84.88%. The freezing date is from February 8, 2022 to February 7, 2025, and the freezing period is 1095 days.

On February 18, in addition to Heze, Shandong Province, some cities across the country have reduced the interest rate and down payment ratio of the first house loan. Some banks in Chongqing and Ganzhou reduced the down payment ratio of the first house loan to 20%. A number of major banks in Heze, Shandong Province have reduced the down payment ratio of first home mortgage loans. Each bank carries out the down payment ratio of whether there is a house under its name, whether there is a housing loan record and whether the loan has been settled, and the down payment ratio is between 20% - 40%.

Industry news

On February 18, Guangzhou housing and Urban Rural Development Bureau proposed that the annual increase of indemnificatory rental housing rent should not exceed 5%. In terms of scale, the project shall be centralized rental housing, and the housing supply scale shall not be less than 10 sets (rooms) in principle. In terms of operation, the operation period of indemnificatory rental housing projects shall not exceed the approved land use life and lease contract life.

On February 17, Sichuan Provincial Department of housing and urban rural development proposed to strive to raise 340000 affordable rental housing units during the 14th Five Year Plan period. During the "14th five year plan" period, Sichuan Province strives to raise 340000 sets (rooms) of affordable rental housing, including 300000 sets (rooms) raised by Chengdu. The groups faced are new citizens and young people with housing difficulties, and there is no income threshold for application.

On February 18, the national development and Reform Commission issued a notice on printing and Distributing Several Policies to promote the steady growth of industrial economy. The policies include extending the phased tax deferment policy and delaying the payment of some taxes by small, medium-sized and micro enterprises in the manufacturing industry implemented in the fourth quarter of 2021 for a further six months; We will continue to implement the preferential policies of subsidies for the purchase of new energy vehicles, awards and subsidies for charging facilities, and reduction and exemption of vehicle and vessel taxes.

Suggested concern

The meeting of the Political Bureau of the CPC Central Committee stressed the need to promote the construction of affordable housing, support the commercial housing market to better meet the reasonable housing needs of buyers, and promote the healthy development and virtuous cycle of the real estate industry. Three types of real estate stocks in the later stage deserve attention: (1) leading real estate enterprises with low interest rate financing costs and relying on state-owned enterprises to continuously obtain land in first and second tier cities, such as Vanke and Poly Real Estate; (2) Real estate enterprises that are less affected by the land policy and have strong land application ability, such as Seazen Holdings Co.Ltd(601155) , Baolong real estate, etc; (3) Leading real estate enterprises that have arranged long-term rental apartments, such as 5I5J Holding Group Co.Ltd(000560) , Longhu group, etc.

Risk tips

Tip 1: real estate regulation and control policies are tightened;

Tip 2: prevent financial systemic risks.

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