On April 11, Tianjin housing provident fund management center issued the notice on issues related to the purchase of the first house and the withdrawal of housing provident fund for indemnificatory housing (hereinafter referred to as the notice).
The notice points out that when young employees buy their first set of housing and affordable housing in Tianjin, if there is a certain balance in the housing provident fund account of both employees and their spouses' parents, employees and their spouses' parents can apply for withdrawal of housing provident fund to support their children's purchase of houses, so as to help young employees alleviate the pressure of basic housing. From 2017 to 2022, the policy played a positive role in supporting the basic housing needs of young workers. It is now reissued and continued for five years.
Up to now, not only Tianjin, but also many cities have issued new provident fund policies. For example, more than 20 regions such as Hangzhou, Shenzhen and Wuxi stipulate that children can withdraw their own and their parents' provident fund when buying a house or repaying a housing loan.
"Similar to the policies of Tianjin, many cities and regions have issued similar measures, mostly involving lowering the threshold in terms of loan amount of provident fund, withdrawal from other places, loan interest rate, etc." Xiao Yunxiang, a senior analyst at Tongce Research Institute, told the Securities Daily that Tianjin reduces the down payment pressure of home buyers through the common use of the provident fund of direct relatives, which aims to meet the reasonable purchase demand of residents and plays a positive role in promoting the stable development and virtuous circle of the real estate industry.
"Children can withdraw their parents' housing provident fund for house purchase, which not only ensures the maximization and optimization of resource utilization to a certain extent, but also further alleviates the house purchase pressure of youth groups through the sharing of resources among relatives." Guan Rongxue, an analyst at Zhuge housing search data research center, told the Securities Daily that in addition, there may be a phenomenon that the children's housing provident fund is limited by the constraints of time nodes and cannot buy a house through the provident fund in a short time. The policy will greatly alleviate the troubles of such problems, shorten the purchase cycle and meet the reasonable housing demand in time.
"The overall development of the property market in Tianjin is still relatively stable, but the high inventory pressure is also a more prominent problem. Therefore, Tianjin needs to make efforts again in promoting industrial development and improving population absorption." Guan Rongxue said that in addition, at the beginning of this year, Tianjin moderately relaxed the settlement conditions. At the same time, under the influence of the gradual expansion of the recent deregulation of the property market policies, the market confidence will gradually rise. In the future, the development of Tianjin's property market will still focus on stability and health. In addition, a new house purchase policy may be introduced in the future, but the adjustment is not expected to be too strong.
It is noteworthy that affected by the epidemic and the lack of consumer confidence in house purchase, many places have issued policies to blow warm air for the property market. According to public data, since the beginning of this year, more than 65 cities across the country have introduced new policies on the property market, which mainly involve relaxing purchase and sale restrictions, reducing the proportion of down payment and loan interest rates.
"Since the beginning of the year, judging from the overall trend of the deregulation policies issued by all localities, it is a step-by-step process, from preferential promotion to the deregulation of some purchase and sales restrictions." Xiao Yunxiang said that from the urban dimension, however, decisions need to be made according to the local market conditions and the original basic policies. At present, judging from the real estate situation in Tianjin, since the second half of last year, the number of sets traded in the market has continued to decline year-on-year, and the market has a certain demand for repair. Whether there is a new house purchase policy in the future needs to be judged by the local government according to the market reaction after the implementation of the policy.
