Since 2020, China’s housing market as a whole has shown a situation of oversupply, with only part of the population flowing into areas of structural shortage. Consumer rights protection incidents occur frequently in many places across the country, and Lbx Pharmacy Chain Joint Stock Company(603883) buying houses in advance bears huge risks.
On March 3, Shi Weidong, member of the National Committee of the Chinese people’s Political Consultative Conference and President of Nantong University, told surging news that he submitted the “proposal on strengthening the supervision of future housing sales and gradually abolishing the future housing system” to the fifth session of the 13th CPPCC National Committee.
In the face of the frequent problems of “safeguarding the rights of future houses”, combined with the concept of “housing, housing and non speculation”, Shi Weidong suggested to strengthen the supervision of future house sales, set up a special supervision account in the bank or a third-party custody institution by the housing construction department, manage the deposit for future house sales, and gradually cancel the future house system according to the region.
In terms of strengthening the supervision of future house sales, Shi Weidong believes that the government housing and construction department should formulate corresponding rules. Buyers need to pay 10% – 30% of the total price of the pre-sale funds (deposit) at the beginning. The pre-sale funds are placed in the special bank supervision account or the third-party guarantee institution in charge of the housing and construction department. Real estate developers are not allowed to use the funds, and buyers cannot easily break the contract. The real estate developer obtains the pre-sale funds according to the development progress of the house. If the buyer changes his mind halfway, he can pay liquidated damages according to the contract. After the house construction is completed, the buyer will pay the full amount only after passing the acceptance. If the buyer uses a loan, the bank can lend only after the house is collected.
In March 2020, Hainan Province announced the implementation of existing house sales system for new houses. “It is suggested to learn from the experience of Hainan Province and gradually abolish the auction system according to the actual situation of the region.” Shi Weidong shows that after changing to existing house sales, “what you see is what you buy” can reduce the risk of home buyers and alleviate the contradiction of “delivering a house is safeguarding your rights” in the auction era.
However, after canceling the pre-sale of commercial housing, developers have less important financing channels, and small and medium-sized developers with poor financing ability will be forced to withdraw from the market. As the capital pressure of large real estate enterprises increases and land acquisition becomes more cautious, the land of local governments may not be sold or can not be sold at a price This will lead to an overall reduction in the supply of new houses, a rise in house prices and a reduction in government land transfer fee income.
In this regard, Shi Weidong suggested that the pilot implementation of national real estate tax should be carried out as soon as possible. In addition, the auction land price in cities should be reasonable and the maximum price should be limited. For developers with high quality and integrity, the government and banks should strengthen the support of funds and policies, and support them in terms of loan term and interest. Governments at or above the county level must assume territorial responsibility, try their best to resolve the existing uncompleted residential flats in this area and prevent the waste of social resources.
