Events
On March 1, the general office of Zhengzhou Municipal People’s government issued the notice on promoting the virtuous cycle and healthy development of the real estate industry, which involves five aspects: supporting reasonable housing demand, improving housing market supply, increasing credit financing support, promoting the construction and transformation of resettlement housing, and optimizing the real estate market environment.
Main points
Targeted relaxation of purchase restrictions to support reasonable housing demand. Notice mention “To ensure that college students live in Zheng’an and migrant workers pay the housing provident fund in Zhengzhou, they can handle the withdrawal business of housing provident fund according to the same conditions as the employees who pay the housing provident fund in this city. When buying a house in Zhengzhou, they can apply for housing provident fund loans according to the same conditions as the employees who pay the housing provident fund in this city. The elderly are encouraged to join their relatives and provide for the elderly in Zheng, and their families are allowed to buy a new house 。” This will help to meet the reasonable housing needs of college students, new urban youth and other groups, and guide the reasonable needs to enter the market.
Implement monetary resettlement and promote the transformation of resettlement housing. Implement the three-year action of resettlement housing construction, and adhere to monetary resettlement in combination with the situation of the real estate market. For resettlement houses that have not started construction, the relocated people are encouraged to choose monetized resettlement. For the houses other than self occupied houses in the built resettlement houses, the government shall adopt the methods of repurchase and leaseback to revitalize and transform them into indemnificatory rental houses and houses with common property rights.
Stabilize the rhythm of residential land supply and improve the linkage mechanism between house price and land price. When the decontamination cycle is less than 18 months, moderately increase the supply of residential land; When the decontamination cycle is more than 18 months, the supply of residential land shall be moderately reduced. The minimum proportion of land auction deposit is reduced to 20% of the listing price, and the land transfer fee can be paid in installments within one year after the transaction. This will help to reasonably adjust land supply, link house prices and land prices, and stabilize market expectations.
We will increase credit and financing support to bail out troubled enterprises. Financial institutions are encouraged to extend and renew loans to troubled enterprises, and increase the support for M & A loans of real estate enterprises in accordance with the principles of law and regulation, controllable risk and commercial sustainability, so as to effectively alleviate the operating pressure of the capital chain of market entities. This will increase support for difficult market entities from the perspective of capital, encourage financial institutions to support development loans and reduce personal mortgage interest rates, which will help alleviate the financial pressure of enterprises and ensure the stability of enterprise cash flow.
Cancel the “house and loan recognition” and reduce the housing loan interest rate. In terms of housing loans, we will guide financial institutions in Zheng to increase the investment of individual housing mortgage loans and reduce the interest rate of housing loans. For families who own a house and have settled the corresponding house purchase loans, in order to improve their living conditions and apply for loans again to buy ordinary commercial houses, banking financial institutions implement the first house loan policy. Zhengzhou cancels the “housing and loan recognition”, reduces the purchase cost of improved demand groups, stimulates reasonable housing improvement demand, and stabilizes the Zhengzhou property market.
Investment advice
Recently, many places have introduced new policies to stabilize market expectations, but the commercial housing sales market is still not optimistic. Zhengzhou has taken various measures to stabilize the real estate market in Zhengzhou from the aspects of mortgage interest rate, land supply and financing support, which has a certain demonstration role nationwide. With the further deepening of urban policy reform, it is not ruled out that more cities will introduce relevant policies.
In the short term, the credit environment still needs to be improved, the Matthew effect on capital is prominent, and enterprises with low financing cost and land acquisition advantage may benefit; In the medium and long term, after the in-depth adjustment of the industry, brand real estate enterprises with the advantages of financing and land acquisition will have obvious advantages in the future competition. Related targets: (1) leading real estate enterprises with low financing cost and sustainable land acquisition in first and second tier cities, such as green city China (3900. HK), Longhu group (0960. HK), etc; (2) Real estate enterprises that are less affected by the “two concentration” land policy and can obtain land through diversified ways, such as Seazen Holdings Co.Ltd(601155) ( Seazen Holdings Co.Ltd(601155) . SH), Baolong real estate (1238. HK), etc; (3) The construction of indemnificatory rental housing has gradually opened the demand for agent construction, and deeply cultivated the green city management holding (9979. HK) built by the government for many years.
Risk tips
Real estate policy regulation exceeded expectations; The sales of commercial houses were lower than expected.
