“one bank, two sessions” statement to stabilize the property market
On May 4, the people’s Bank of China, China Securities Regulatory Commission and China Banking and Insurance Regulatory Commission held special meetings respectively to deeply convey and study the spirit of the meeting of the Political Bureau of the CPC Central Committee and study and deploy specific implementation measures.
Among them, the contents of real estate mainly include optimizing real estate credit policies, maintaining the stability and order of real estate financing, actively supporting real estate enterprise bond financing, supporting rigid and improved housing demand, and supporting the steady and healthy development of the real estate market
The central bank said that we should implement the prudent management system of real estate finance, timely optimize the real estate credit policy, maintain the stability and order of real estate financing, and support the rigid and improved housing demand
The cbcirc stressed the need to urge banks and insurance institutions to adhere to the positioning of “houses are for living, not for speculation”, implement differentiated housing credit policies due to urban policies, support the demand for first and improved housing, and flexibly adjust the repayment plan of individual housing loans of people affected by the epidemic. We should distinguish between project risks and enterprise group risks, do not blindly withdraw loans, cut off loans and suppress loans, and maintain the stability and order of real estate financing. In accordance with the principles of marketization and rule of law, we should do a good job in the financial services of mergers and acquisitions of risk disposal projects of key real estate enterprises. At the same time, strengthen the financial services of “new citizens” and support the financial needs of “new citizens” in Urban Entrepreneurship and employment, house purchase and housing, education and training, medical care and pension.
The CSRC proposed to actively support the bond financing of real estate enterprises, study and broaden the pilot scope of infrastructure REITs, and timely introduce more policies and measures to support the development of real enterprises.
On the same day, the Shenzhen Stock Exchange also issued the notice on several measures to support the real economy, indicating that it would support the reasonable financing needs of real estate enterprises. Support the normal financing activities of real estate enterprises, allow high-quality real estate enterprises to further expand the use of bonds to raise funds, encourage high-quality real estate enterprises to issue corporate bonds, merge and acquire projects of real estate enterprises in danger, and promote the steady and healthy development of the real estate industry.
10 cities intensively introduce new policies for the real estate market
In addition to the regulators, all localities have also implemented policies for the real estate market due to the city, and the introduction speed of relevant measures to stabilize the real estate market has been significantly accelerated.
According to incomplete statistics by 21st Century Business Herald reporters, from April 29 to May 4, Shenyang, Luoyang, Zhuzhou, Huangshi, Jiangsu Lianyungang Port Co.Ltd(601008) , Zhongshan, Huizhou, Shangrao, Meizhou, Yueyang, Wuxi, Jiaxing, Guiyang, Xuzhou, Ganzhou and other more than ten cities issued new real estate policies , optimizing the regulation and control policies of the real estate market.
Support initiatives involve:
Relax purchase restrictions;
Reduce the proportion of down payment;
Increase the amount of provident fund loans;
Payment of house purchase subsidies;
Grant deed tax subsidies;
Cancel “recognizing both houses and loans”;
Relax the purchase restrictions on foreign talents;
Reduce the number of years of value-added tax on individual housing transfer;
Adjust the supervision of pre-sale funds;
Reduce the minimum proportion of land auction deposit
And so on.
Chen Wenjing, market research director of the index division of China Index Research Institute, told the 21st Century Business Herald reporter that under the background of continuous and large adjustment pressure in the current real estate market, the central policy setting has clearly released positive signals. All localities have further strengthened their implementation of policies due to the city, and the expectation is strong. The relaxation of policies is conducive to the recovery of buyers’ expectation and confidence in home ownership. It is expected that after the policy is effective and the epidemic is effectively prevented and controlled, the market can stabilize, especially the hot cities with strong fundamental support are expected to take the lead in stabilizing, so as to drive the third and fourth tier cities in key regions to complete the bottom.
“Now the real estate market in Shenyang is still relatively poor, with a lot of inventory of new houses and second-hand houses.” On May 5, a market researcher of a brand real estate enterprise in Shenyang told the 21st Century Business Herald. The sales subscription amount of the company in Shenyang this year decreased by more than 30% compared with the same period last year.
On April 29, Shenyang issued a notice to clarify that non registered residence household registration families purchase new houses in the restricted purchase area of Shenyang, and implement the purchase policy of registered residence household registration families, that is, they will no longer provide the certificate of continuous payment of personal income tax or social security for 6 months or more in Shenyang within 2 years from the date of purchase application.
“After the introduction of the new deal, the threshold for outsiders to buy a house in Shenyang has been reduced, and there is an opportunity to attract more outsiders to buy a house.” The above real estate enterprises said.
It should be noted that from April 26 to 30, Shenyang successively issued five notices to optimize the regulation of real estate. In addition to adjusting the purchase restriction policy of outsiders, the exemption period of value-added tax on second-hand housing transactions was shortened from five years to two years. In the process of “selling old and buying new” in Shenyang, there are two housing families who can buy another new house, and there are member families aged 60 and above, two children and three children who can buy another new house on the basis of the existing two suites.
in addition to Shenyang, before and after the May Day holiday (April 29-may 4), Luoyang, Zhuzhou, Huangshi, Jiangsu Lianyungang Port Co.Ltd(601008) , Zhongshan, Huizhou, Shangrao, Meizhou, Yueyang, Wuxi and Jiaxing also launched new policies for the real estate market, including increasing the amount of provident fund loans, reducing the proportion of down payment, relaxing the recognition standards for first homes, issuing house purchase subsidies and deed tax subsidies, and optimizing the purchase restriction areas
For example, since May 1, the maximum loan amount of Luoyang personal provident fund has been adjusted to 550000 yuan, the maximum loan amount of husband and wife and young talents has been adjusted to 650000 yuan, and the minimum down payment ratio of second-hand housing provident fund loan is uniformly implemented at 20%. Zhuzhou, Shangrao, Meizhou and other places have also raised the amount of provident fund loans or reduced the down payment ratio of provident fund loans.
For another example, on May 1, Yueyang issued a document to increase the support of individual housing mortgage loans, that is, the interest rates of the first and second housing loans are not higher than 5.1% and 5.46% respectively, and the minimum down payment ratio is 20%; For families who own a house and have settled the corresponding house purchase loans and apply for loans for purchasing ordinary commercial houses again, the first house loan policy shall be implemented.
Similar to Yueyang, from May 1, the down payment ratio of commercial loans for the first and second houses in Shangrao was reduced to 20% and 30% respectively, and the commercial loan interest rate was reasonably lowered.
In addition, on April 29, Huangshi issued a new deal, giving 50% deed tax subsidy to buy a new house in Huangshi City and 100% deed tax subsidy to buy the first new house in dayehu new area. On April 30, Huizhou issued a new policy, which clearly meets the reasonable housing needs within the scope of Huiyang District and Daya Bay Economic and Technological Development Zone, and will no longer be included in the key areas of purchase restriction, etc.
industry insiders: the real estate market in key cities is expected to reach the bottom in the second quarter
industry analysts believe that the relevant statements of regulators may mean that various supporting policies will be issued in time in the future, which will help to further improve the real estate market environment
Li Yujia, chief researcher of Guangdong housing policy research center, said that the central bank once again stressed “implementing the real estate financial Prudential Management System”. The so-called financial Prudential Management is to give support when the real estate downturn is obvious and tighten or regulate when it rises rapidly. Its purpose is not to suppress house prices, market and industry, but to maintain the stability and health of the market and industry.
At the same time, does not stick to the temporary loose or tight policy, but the temporary high or low leverage, but is stable, so as to achieve the goal of real estate transformation in the medium and long term
“For the current property market, this means that the central bank will provide financial support for the demand for house purchase in the future.” He said.
In response to the cbcirc’s statement that “we should distinguish between project risks and enterprise group risks, not blindly withdraw, cut off and suppress loans, and maintain the stability and order of real estate financing”, Li Yujia believes that this is an effective way to deal with the current credit risk dilemma of real estate enterprises. “Isolate the project from the enterprise, separate and minimize the risk, and facilitate the introduction of new funds for projects with relatively transparent information, so as to revitalize the pre-sale funds, and revitalize several independent projects to drive the treatment of the overall risk.” He analyzed.
Li Yujia believes that the policy rescue will be strengthened in the future, and the property market in key cities or metropolitan areas is expected to hit the bottom in the second quarter, and the market is expected to hit the bottom and pick up in the second half of the year however, the current problems faced by the market, such as the impact of the epidemic, weak demand, the lack of anger in the land market, and the difficulty of large-scale implementation of real estate enterprise acquisition and merger, have not been solved.
Xu Xiaole, chief market analyst of Shell Research Institute, pointed out that the words “timely optimization”, “active support” and “urging banks and insurance institutions” in the statements of the first bank and the second session of the CPPCC were more positive, which conveyed the urgency of adjusting policies. It is expected that the supportive policies of local banks and relevant financial institutions for home buyers and real estate enterprises will be issued in time in the later stage.
Specifically, the supporting policies will cover three directions. On the one hand, the local housing credit policy will be adjusted, the house and loan will be cancelled, the down payment and interest rate will be reduced, and the house purchase cost on the demand side will be effectively reduced; On the one hand, the financing environment of real estate enterprises will be significantly improved, and the overall financing environment of real estate enterprises will be significantly improved; In addition, banks, AMC and other institutions are expected to accelerate the merger and acquisition of risk projects of key real estate enterprises, which is conducive to clearing the risks of real estate enterprises.
the cumulative increase of new houses in the first four months hit a new low in the same period in recent seven years
Chen Wenjing, director of Market Research of the index division of China Index Research Institute, pointed out that since this year, more than 100 cities have optimized real estate policies to promote the release of residents’ reasonable purchase demand. In April, the pace of policy implementation at both ends of supply and demand accelerated, and the scope of the policy has further extended to optimizing purchase, loan and sales restrictions.
Chen Wenjing said that market confidence in some cities has been restored, but the policy effect has not yet been obvious , overall market expectation is still weak, superimposed on the repeated impact of the epidemic in some cities, and the transaction scale in key cities is still low.
Meng Xinxin, an analyst of the index division of China Index Research Institute, introduced that from January to April, the price of new houses in 100 cities increased by 0.08%, which was the lowest in the same period of nearly seven years. In the same period, the transaction scale of new houses in 100 cities ranked the lowest in the same period of history, with a year-on-year decrease of more than 40%.
From the single month of April, according to the data of Shell Research Institute, the contracted area of new commercial housing in key 62 cities in China decreased by 35% month on month, and there was no “little spring”.
During the May Day holiday, the transaction area of newly-built commercial housing in the key monitoring cities of the central index decreased by 52.3% compared with last year’s May Day holiday. Among them, new commercial houses in Wenzhou, Putian, Hangzhou and Nanjing decreased significantly year-on-year, down 84%, 79%, 75% and 67% respectively.
Since this year, the adjustment of real estate policies around the country has focused on the demand side, and the content of multi city policy regulation before and after May Day also involves the supply side.
For example, the first article of Luoyang new deal is comprehensive rating enterprises, highlighting classified measures. Specifically, it includes implementing differentiated pre-sale management according to the comprehensive rating of enterprises, implementing differentiated regulatory fund management according to the rating of enterprises, and supporting the construction of high-quality and improved residential communities. For high-quality real estate projects with low floor area ratio, high green space ratio and fine decoration, the record price of commercial housing can rise appropriately according to the construction cost.
For another example, Shangrao made it clear in the new deal that the supervision proportion of the key part of the pre-sale funds of real estate enterprises with good reputation and no capital risk should be appropriately reduced to 6%, and support the payment of property quality warranty in batches.
Xu Xiaole, chief market analyst of Shell Research Institute, believes that on 5, the central bank, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission issued more positive words related to real estate, conveying the urgency of policy adjustment. It is expected that in the later stage, the supportive policies of local banks and relevant financial institutions for home buyers and real estate enterprises will be issued in time to effectively reduce the purchase cost on the demand side, and the overall financing environment of real estate enterprises will be significantly improved
Meng Xinxin told the 21st Century Business Herald that the purpose of adjusting the supply side policy is also to better promote demand side housing consumption. In the future, real estate policy regulation will cover both supply and demand sides, but will still focus more on the demand side.
