After the reduction of the down payment ratio of housing loans in many places, the interest rate of housing loans also decreased.
According to the news of China Central Television, six large state-owned banks have simultaneously lowered the housing loan interest rate in Guangzhou since February 21, and the preferential examination and approval interest rates for the first and second homes have been reduced by 20 basis points respectively. The Chinese reporter of the securities company also verified the news from the intermediary. On the same day, it was also reported that the interest rate of the first mortgage of some banks decreased slightly in Suzhou.
Affected by this, the A-share real estate sector rose on the same day, Guangzhou Pearl River Industrial Development Co.Ltd(600684) straight-line raised the limit, Tahoe Group Co.Ltd(000732) , Black Peony (Group) Co.Ltd(600510) also closed at the limit, Langold Real Estate Co.Ltd(002305) , Grandjoy Holdings Group Co.Ltd(000031) rose by more than 7%, Chongqingyukaifaco.Ltd(000514) , Cosmos Group Co.Ltd(002133) rose by more than 5%, Cinda Real Estate Co.Ltd(600657) , Shenzhen Worldunion Group Incorporated(002285) , Hubei Guochuang Hi-Tech Material Co.Ltd(002377) and so on.
Yan Yuejin, research director of the think tank center of E-House Research Institute, believes that similar adjustments are an important signal for the further relaxation of the current real estate financial market. “The continuous favorable policies in February will continue to reverse the decadent trend of real estate and help the market transactions to be active.”
Mortgage interest rates in the two places were lowered and bank lending accelerated
On February 21, the news of mortgage interest rate reduction came from Guangzhou and Suzhou. Among them, six large state-owned banks have simultaneously lowered the housing loan interest rate in Guangzhou since February 21. The preferential approval interest rate of the first house has been reduced from the previous LPR + 100bp (5.6%) to LPR + 80bp (5.4%), and the preferential approval interest rate of the second house has been reduced from the previous LPR + 120bp (5.8%) to LPR + 100bp (5.6%).
According to the preliminary calculation, with a loan of 2 million yuan, a 30-year term and equal repayment of principal and interest, the buyers of the first house loan can pay about 250.96 yuan less each month, and the buyers of the second house loan can pay about 253.48 yuan less each month.
Yan Yuejin believes that the similar reduction is mainly related to the abundant bank quota. As the real estate market has not yet returned to the normal prosperity, it is expected that there is room for further reduction in the follow-up. “Affected by policies such as the reduction of reserve requirements and interest rates, the housing loan market is generally guided by continuous easing. Banks have the power to issue cheaper loan funds and objectively activate more people to apply for housing loans.”
In addition to the reduction of mortgage interest rate, it is more obvious that since the beginning of the year, bank mortgage approval and lending have been significantly accelerated.
“It was really hard to put last year. The backlog of orders was serious, but it improved significantly at the end of the year. The quota is more abundant this year. The reduction of the five-year LPR interest rate also stimulated the demand for house purchase. Therefore, the whole lending cycle is further accelerated. Generally, it is possible to make loans in a week or two at the fastest.” A big bank mortgage account manager said.
The monitoring data of Shell Research Institute also shows that in January 2022, the average mortgage interest rate and lending cycle of 103 key cities have returned to a reasonable level in mid-2021, of which the mainstream mortgage interest rate of 59 cities has been reduced month on month. In terms of lending cycle, the lending cycle of 64 cities was shorter than that of last month, and the bank lending of four first tier cities was accelerated.
This does not mean that the bank’s housing loan business will be put in indiscriminately. When CMB was surveyed at the beginning of the year, it said that the bank would give priority to supporting the demand for the first and second homes. “Many fresh graduates give priority to the development in the first and second tier cities and have the demand to buy houses. We mainly aim at these high-quality customers.”
According to the data of China Merchants Bank, by the end of September 2021, the stock of mortgage loans of the bank was about 1.3 trillion yuan, of which more than 80% were concentrated in the first and second tier cities, 90% were concentrated in the customers of the first suite and about 9% were the customers of the second suite.
large scale loosening of housing loan policy
According to statistics, since the beginning of the year, there has been news of the reduction of the down payment ratio of housing loans in many places. These include Beihai, Zigong and Nanning, where the down payment ratio of provident fund has been reduced, and Heze, Chongqing, Ganzhou and Foshan in Shandong, where the down payment ratio of commercial loans has been reduced.
Market analysts believe that it is often non restricted areas that reduce the proportion of down payment, but also local markets, which shows that the policy relaxation needs a process. At present, the policy in non restricted areas is easier to loosen, and the relaxation is also a process of gradual adjustment. “This will have a more substantial impact on market transactions, which is conducive to the subsequent promotion of the stable and healthy development of the real estate market.”
Prior to this, the central economic work conference has clearly mentioned that “support the commercial housing market to better meet the reasonable housing needs of buyers, and promote the virtuous circle and healthy development of the real estate industry due to urban policies.” Relevant statements have also appeared in local government reports.
According to the data of Zhongyuan Real Estate Research Center, there were more than 66 real estate related policies issued in January alone, most of which were mainly supportive policies such as loose provident fund policy and talent rent and house purchase subsidy, which was also the most intensive period for the introduction of real estate related policies in recent months.
At present, there are mainly four ways to activate local real estate policies: first, relax financial policies, that is, reduce down payment and interest rate, so as to reduce the purchase cost of home buyers; Second, the settlement and settlement policy, that is to encourage college students, new citizens, migrant workers and three child families to buy houses and increase the number of house purchasing groups; Third, the introduction of preferential policies and subsidies for house buyers, especially in order to reduce the pressure on house buyers; Fourth, price policy, such as reducing the actual payment cost of house buyers through price discounts.
Sinolink Securities Co.Ltd(600109) the research report predicts that more cities will introduce measures to reduce the proportion of down payment and the interest rate of housing loans in the future, and are optimistic about the introduction of adjustment policies on purchase and sale restrictions in the future.
real estate enterprise acquisition and merger project won “blood transfusion”
The continuous loosening of housing loan policy is expected to improve the sales performance of real estate enterprises and help stabilize the operation of real estate enterprises. At the same time, many banks announced to provide financing support for the acquisition and M & A projects of real estate enterprises.
The latest news is that Grandjoy Holdings Group Co.Ltd(000031) Holdings has signed a comprehensive cooperation agreement on real estate M & A financing with Shanghai Pudong Development Bank Co.Ltd(600000) on February 18, and the amount of M & A financing provided by the latter has reached 10 billion yuan. Prior to this, Shanghai Pudong Development Bank Co.Ltd(600000) has completed the issuance of 5 billion yuan of Real Estate Project M & a theme bonds.
In addition to Shanghai Pudong Development Bank Co.Ltd(600000) , Guangdong Development Bank, Ping An Bank Co.Ltd(000001) , Industrial Bank Co.Ltd(601166) have successively announced plans to issue 5 billion yuan, 5 billion yuan and 10 billion yuan of Real Estate Project M & a theme bonds.
On February 14, China Merchants Bank signed a 10 billion yuan M & A financing strategic cooperation agreement with Grandjoy Holdings Group Co.Ltd(000031) holdings. The bank will also grant China Resources Land 20 billion yuan and China Resources Vientiane life 3 billion yuan M & A financing lines respectively.
Kerui Research Center believes that the liquidity risk of the industry will continue in 2022, but at the same time, the opportunities for mergers and acquisitions are also increasing: on the one hand, for enterprises with great debt repayment pressure, it is urgent to reverse the situation with the help of project transfer and asset sale; On the other hand, central enterprises, state-owned enterprises and some high-quality private enterprises will take greater initiative in the M & a market with their own strength and policy support.
With the opening of M & A financing channels, the industry’s enthusiasm for M & A has been mobilized. Strengthening the transfer, merger and acquisition at the project level is expected to alleviate the capital pressure of the real estate enterprises in danger, prevent the expansion of risks and speed up the clearing of market pressure.
Yan Yuejin believes that the current real estate market is at the end of the cooling since the second half of last year, and this year will show a “√” trend, that is, at present, it continues to enter the stage of market bottoming, bottoming and bottoming, and then there is a better foundation for bottom rebound and gradual recovery.
