On March 1, Zhengzhou issued the notice on promoting the virtuous circle and healthy development of the real estate industry (hereinafter referred to as the notice). Zhengzhou became the first city in China to relax the purchase and loan restrictions this year.
Yan Yuejin, research director of the think tank center of E-House Research Institute, told the Securities Daily that the Zhengzhou policy has a very substantive guidance to stabilize and save the property market. Policy relaxation from the previous encouragement of housing loans and reduction of down payment to the relaxation of purchase restrictions, has given a lot of supporting policies to encourage the demand for improved house purchase, which is in line with the mainstream policy of the current house purchase market, that is, to ensure just demand and support improvement. Based on the increase of credit liquidity and the reduction of capital cost, the policy on second house will be more relaxed in the future, and the market transaction data may rebound further.
cancel “house and loan recognition”
The notice puts forward 19 measures to promote the virtuous circle and healthy development of the real estate industry from 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.
One of the biggest highlights is the proposal to reduce the burden of personal housing consumption. Guide financial institutions in Zhengzhou 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.
In this regard, Yan Yuejin said that from the perspective of the Zhengzhou policy, the market response is relatively large. First, Zhengzhou took the lead in relaxing the purchase restriction policy, which stipulates that if children and close relatives work and live in Zheng, the elderly are encouraged to join their relatives and provide for the elderly in Zheng, and their families are allowed to buy a new set of housing. The regulation actually cancels the purchase restriction and increases the number of houses that can be purchased by such families. Second, relax the loan restriction policy. This time, Zhengzhou made it clear that 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. This is also equivalent to relaxing the standard of loan restriction, so that such groups can buy houses according to the first set of proportion in the future. In fact, it also reduces the down payment proportion of house purchase.
According to the statistics of Zhongyuan Real Estate Research Institute, the down payment of commercial loans and provident fund have been reduced in many cities recently. On the whole, from January to February 2022, nearly 50 cities across the country issued different degrees of property market easing policies, including credit easing, attracting talents to subsidize house purchase, reducing and exempting subsidy deed tax and other policies. However, from the perspective of policy strength, the credit policy has a greater impact.
“The policy of Zhengzhou has obviously given a lot of supportive policies to encourage the demand for improved house purchase. Therefore, the subsequent transactions of large house types are bound to accelerate, which has a positive effect on the project destocking of real estate enterprises.” As for the real estate market in other small cities, Yan’s policy can promote the recovery of the real estate market in March, which can also promote the recovery of the national real estate market.
real estate policies occur frequently, but there is still room for improvement
Since the beginning of 2022, the credit policy has stabilized, and the central bank has continuously released loose information. Recently, the central bank has also strengthened the operation of reverse repurchase. For the market, affected by the policy, the expectation of the real estate market has improved steadily.
Everbright Securities Company Limited(601788) research report believes that the starting point of wide credit in 2022 mainly lies in government related fields, real estate and green industries. According to the “triangular model” of budget planning, it is estimated that RMB loans will be increased by 21 trillion yuan to 22 trillion yuan in 2022, at least 1 trillion yuan more than that in 2021. It is estimated that housing related loans will increase by 4.8 trillion yuan, with a growth rate of 9.14%, an increase of 1.4 percentage points over 2021. Among them, housing mortgage loans are expected to increase by 4.4 trillion yuan in 2022, an increase of 507.4 billion yuan over 2021.
Zhang Dawei, chief analyst of Centaline real estate, told the Securities Daily that the easing direction of credit policy, in addition to the reduction of the down payment percentage for self occupied housing, recently, the market is paying more attention to the loan policy changes for improving demand, such as the qualification standard of the first house, and the market needs policy support for the real improvement demand of selling and buying one and some second houses.
Yan Yuejin said that while the policy is relaxed, the biggest problem is to prevent house price speculation, especially the confusion of house purchase order, so all localities are required to ensure the stability of the trading market. From the perspective of policy itself and improvement, especially in some cities, the restrictions on the purchase policy of single older youth need to be relaxed. In addition, it should also be noted that whether there is a disguised fraud to obtain the purchase qualification and interest rate of the first house.
The China Index Research Institute believes that, on the whole, it is expected that more cities will adjust the property market policies in the future. All localities will fully implement the urban implementation policies, and both the demand side and the supply side will work together to stabilize the market expectations.
