On May 15, the people’s Bank of China and the China Banking and Insurance Regulatory Commission issued the notice on issues related to the adjustment of differentiated housing credit policies. For resident families who buy ordinary self owned houses with loans, the lower limit of the interest rate of commercial individual housing loans for the first set of houses was adjusted to no less than the loan market quotation interest rate (LPR) of the corresponding term minus 20 basis points.
At the same time, on the basis of the national unified lower limit of loan interest rate, the dispatched offices of the people’s Bank of China and the China Banking and Insurance Regulatory Commission, in accordance with the principle of “implementing policies according to the city”, guide the provincial market interest rate pricing self-discipline mechanism, and independently determine the lower limit of commercial individual housing loan interest rate for the first and second houses in the cities under their jurisdiction according to the changes of the real estate market situation in the cities under their jurisdiction and the regulation and control requirements of the city government.
After the release of the policy, Langfang took the lead in “responding”. On May 17, some media reported that some banks in Langfang, Hebei Province adjusted the mortgage interest rate: the first mortgage interest rate has indeed dropped to 4.6%, and the down payment has been adjusted to 20%; The down payment interest rate of the second house loan decreased to about 2.5%.
In this regard, Yan Yuejin, research director of the think tank center of E-House Research Institute, believes that the subsequent implementation of more banks will benefit the Langfang property market.
Many insiders believe that after many years, Langfang adjusted the lower limit of the first house mortgage interest rate, which also released a more positive signal. The policy plays a positive role in guiding the reduction of housing loan costs and promoting the recovery of market confidence of real estate enterprises and home buyers.
For example, if the loan amount is 500000 yuan, the term is 25 years, and the repayment of equal principal and interest is estimated, the previous interest rate of the first house loan is 5.39%, then the monthly payment is 303768 yuan. After the mortgage interest rate is reduced to 4.6%, the monthly supply is about 280762 yuan. In contrast, it can save about 230 yuan per month and 69000 yuan in 25 years.
Combined with the LPR announcement issued by the central bank on April 20, after the implementation of the new deal, the minimum interest rate of the first commercial personal housing loan can be reduced to 4.4%. According to the first quarter monetary policy implementation report released by the central bank, the weighted average interest rate of new loans in March was 4.65%, and the weighted average interest rate of individual housing loans was 5.49%. This also means that there is still a large room for the reduction of individual housing loan interest rate in theory, which helps to guide local policies and banks to further implement the preferential policies for house purchase and further reduce the cost of house buyers.
In addition, the proportion of down payment for some projects in Langfang area has also decreased.
Some media learned from a number of real estate agents and sales offices in Langfang, Hebei that the down payment ratio of the first house loan in Langfang has been reduced from 30% to 20% and that of the second house from 50% to 30%.
Since this year, the state’s support policies on purchase restrictions, credit and other aspects have not only accelerated the pace of policy relaxation, but also further promoted the release of real estate demand, which will play a positive role in activating market transactions. In addition, as an important part of Beijing Tianjin Hebei region, Langfang’s adjustment also released a positive signal for the regional real estate market, which not only helps to reduce the cost of home buyers and improve the willingness of home buyers, but also continues to curb the demand for investment speculation and promote the steady and healthy development of the real estate market.
This is undoubtedly good news for Risesun Real Estate Development Co.Ltd(002146) who attaches great importance to surrounding Beijing and deeply cultivating Langfang.
Statistics show that Risesun Real Estate Development Co.Ltd(002146) originated in Langfang. Beijing Tianjin Hebei has always been a prosperous deep farming area, and Langfang is the base of its deep layout. So far, more than 45 communities have been developed and constructed in Langfang, serving more than 76000 families and more than 230000 owners. In Langfang City, Rongsheng manages more than 25 communities, serves more than 50000 families and more than 150000 owners.
As of October 2021, Rongsheng has a land reserve area of 1413000 square meters and an intended land reserve area of 388000 square meters in Langfang city.
Under the warming of the policy side, with sufficient land reserves and balanced layout, Risesun Real Estate Development Co.Ltd(002146) will reactivate the markets around Beijing and Langfang and further stabilize the development of enterprisescenter>
