Since May, Xuzhou City, Jiangsu Lianyungang Port Co.Ltd(601008) City, Wuxi City, Ganzhou City, Jiangxi Province and Meizhou City, Guangdong Province have issued or implemented policies to stabilize the property market, which has been significantly strengthened due to urban implementationP align = “center” nearly 110 cities have introduced new policies to stabilize the property market
According to public information, the policies of stabilizing the property market mainly include reducing the down payment ratio of house purchase, reducing the mortgage interest rate, relaxing the restrictions on sales, introducing deed tax concessions, house purchase subsidies, increasing the maximum amount of provident fund loans, etc.
On May 3, Xuzhou Municipal Bureau of housing and urban rural development made it clear to cut the housing loan interest rate; Encourage financial institutions to reduce the down payment ratio for the first house purchase without housing and loan and the second house with housing and no loan; The transfer of newly purchased commercial houses with an area of more than 144 square meters is not restricted. By the end of 2021, Xuzhou had a permanent resident population of 9.0285 million.
Source: Official Website of Xuzhou housing and Urban Rural Development Bureau
On May 1, the three cities announced the adjustment of property market policies on the same day. Meizhou housing and Urban Rural Development Bureau has made it clear that the down payment ratio of provident fund loans for second homes will be reduced to 20% Jiangsu Lianyungang Port Co.Ltd(601008) city has made it clear that the down payment ratio of the first house is 20%. Wuxi announced that the exemption period of value-added tax on the transfer of individual housing in the urban area will be implemented in accordance with national regulations, and will be adjusted from 5 years to 2 years.
Industry experts pointed out that Wuxi is another city to adjust the exemption period of value-added tax on individual housing transfer after Shenyang, which objectively helps to reduce the tax cost of such second-hand houses. From a national perspective, some cities are more likely to follow up and adjust relevant policies. Objectively, it is also to better revitalize the second-hand housing market and promote the activity of the second-hand housing market.
According to the statistics of Zhongyuan Real Estate Research Institute, from the national cumulative data, nearly 110 cities have issued new policies to stabilize the property market since 2022. “Judging from the recent series of policies, ‘stability’ has become a new trend in real estate policy. It is expected that more and more vigorous policies will be released after May Day. With the epidemic situation under control, the probability of xiaoyangchun in the real estate market will appear.” Zhang Dawei, chief analyst of Zhongyuan Real estate, saidP align = “center” market activity still needs to be improved
“At present, the confidence of home buyers has not been restored, and affected by the epidemic, the market activity is still insufficient.” Zhang Dawei continued.
From the perspective of real estate sales in April, due to the impact of the epidemic in many places to varying degrees, the new opening and trading volume of key cities fell to varying degrees compared with March. According to the data of Shell Research Institute, the contracted area of commercial housing in key 62 cities in China decreased by 44% year-on-year in April 2022. In terms of trading volume in a single month, it fell 35% month on month in April. The epidemic situation has repeatedly superimposed the impact of the overall economic situation, and the growth of the new housing market is weak.
Ding Zuyu, CEO of E-House enterprise group, pointed out that the current epidemic is spreading in many places across the country, and various places have successively issued policies to stabilize the market.
“The central policy setting has clearly released a positive signal, and all localities have further strengthened the implementation of policies due to the city, with strong expectations, which is conducive to the recovery of buyers’ expectations and home ownership confidence.” Chen Wenjing, director of Market Research of the index division of the China Index Research Institute, said that it is expected that after the epidemic is effectively controlled, the policy will be effective and the market can be stabilized. In particular, 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.
Ding Zuyu also said that the property market will usher in a supply peak in the second half of 2022. It is expected that the core city market is expected to reach the bottom and stabilize in the third quarter, but the adjustment cycle of the third and fourth tier cities is longer. Only waiting for the first and second tier cities to stabilize, can the third and fourth tier cities have the possibility of rotating and stabilizingP align = “center” financing end improvement still needs policy force
Pressure on new house sales has brought liquidity pressure to real estate enterprises. From the recent introduction of the new deal, many cities have optimized the capital supervision policies of real estate enterprises.
For example, Xuzhou has made it clear that the withdrawal node of commercial housing pre-sale supervision funds will be optimized, and the key supervision funds will be withdrawn by building instead of the original pre-sale batch. Pilot commercial housing pre-sale supervision funds using bank guarantee. In addition, Xuzhou also made it clear to increase the support of project loans and M & A loans, and actively extend and renew the loans of troubled enterprises, so as to effectively alleviate the financial pressure of development enterprises.
In terms of real estate financing, according to Kerui’s incomplete statistics, the financing amount of 100 typical real estate enterprises from January to April 2022 totaled 282.3 billion yuan, a sharp year-on-year decrease of 49.5%. Industry analysts believe that the larger year-on-year decline is due to the relatively large industry financing base in the same period last year. Overall, since 2022, the signal of market recovery has been continuously released, and the financing in the first April has rebounded compared with the end of 2021. Looking forward to the second quarter and the second half of this year, experts believe that the current policy warm wind blows frequently, and the market recovery is only a matter of time, but the policy transmission is still a relatively slow process, and the real estate enterprises still maintain a low amount of financing in the short term.
The central bank, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission recently revealed the policy signal of supporting the normal financing of real estate enterprises when conveying and learning the spirit of the meeting of the Political Bureau of the CPC Central Committee. The central bank pointed out that the real estate credit policy should be optimized in time to maintain the stability and order of real estate financing. The CSRC stressed that it actively supports the bond financing of real estate enterprises. The CBRC stressed that it is necessary to urge banks and insurance institutions to adhere to the positioning of “houses are for living, not for speculation”, implement differentiated housing credit policies according to urban policies, and support the demand for first and improved housing; We will not blindly withdraw, cut off and suppress loans, and maintain the stability and order of real estate financing; Do a good job in financial services for mergers and acquisitions of risk disposal projects of key real estate enterprises.
Xu Xiaole, chief market analyst of Shell Research Institute, believes that the statement of “one bank, two sessions” is more positive and conveys 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. On the one hand, the adjustment of local housing credit policy may cancel the house and loan recognition, reduce the down payment and interest rate, and effectively reduce the house purchase cost on the demand side; On the other hand, the bond financing of real estate enterprises will be actively supported, 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.
