On May 17, Hangzhou issued a notice, which carried out a number of optimization provisions for the real estate market, including “you can buy a second-hand house once you settle down”, “the social security for second-hand houses purchased by non registered residence is changed from four years to one year”, “the only house sold is exempt from business tax after two years”, etc. Only five days after the new deal, the real estate market in Hangzhou has begun to show signs of recovery.
Screenshot source: website of Hangzhou housing and Urban Rural Development Bureau
According to Zhongxin Jingwei, affected by the reduction of taxes and fees, institutional data show that the average daily listing of second-hand houses in the two days after the new deal is nearly seven times the average daily net listing in the past month before the new deal. A number of real estate agents interviewed said that from the 17th, the consultation volume of second-hand houses has increased significantly. Out of optimism about the market prospect, individual owners in Hangzhou raised the listing price, and some owners raised 800000 yuan at one time. However, for the owners of sharp price increases, the broker said frankly that “it’s a little outrageous”.
the owner increased the price by 800000
According to meijing.com, the background of the new deal is that according to the data of China Index Research Institute, the turnover of new houses in Hangzhou (ten districts) continued to decline in the second half of 2021. From January to April this year, the turnover of new houses in Hangzhou totaled 2.14 million square meters, a year-on-year decrease of 66%. Although the market has picked up since the beginning of the year, the overall trading volume has not reached the year-on-year level of last year, or even less than the end of 2021.
“Before the new deal, second-hand houses with a market price of no less than 5.6 million yuan could not be sold, and they were still in the core area of the future science and technology city.” Zhang Xiangming, an intermediary specializing in the future science and technology city of Hangzhou’s popular regional sector, said in a telephone interview with the reporter of the daily economic news on the afternoon of May 19, “but on the other hand, unless you are the top grid of social security, going to the new sector is to accompany you.”
Zhang Xiangming’s words also reflect the complex structural problems of the property market in Hangzhou: the price of second-hand houses in the hot area is seriously upside down, and the cold and hot polarization between regions. The crux may lie in the second-hand housing market, but whether the policy strength can penetrate from the second-hand housing market to the regional first-hand housing market remains to be tested by the market.
According to Zhongxin Jingwei, judging from the market performance in recent days, the real estate market in Hangzhou has shown signs of warming up.
Zhang Yang (a pseudonym), a broker in Linping District, said: “some customers have begun to start these days. Only Puli Dongfang community in Linping district has traded 6 and 7 suites on our platform from the 17th to the 19th.” Pan Lin also said that recently, there are more customers looking at the house and signing contracts. “Now there are basically looking at the house every day. Today (the 20th), there is no one in our store, so we all went out to take a look.”
In addition, on the real estate trading platforms such as shell search, 5I5J Holding Group Co.Ltd(000560) , Zhuge search, some second-hand houses have raised their listing prices, ranging from tens of thousands of yuan / set to hundreds of thousands of yuan / set. After seeing such a situation, individual owners in Hangzhou began to swell their hearts and raised the listing price. Some owners raised 800000 yuan at one time.
Screenshot source: 5I5J Holding Group Co.Ltd(000560) app
However, according to Lin Shuai (a pseudonym), a broker in Xiasha sector, Qiantang District, Hangzhou, the number of customers consulted has indeed increased in recent days, but the number of customers who really decided to buy a house has not changed for the time being. “There are not many owners who have raised their prices. They all join the fun and don’t rush to sell. For those who really want to sell and replace, there is no change in the quotation. Some owners have only one house in their name and have been trading for two years. There is no value-added tax after the new deal, so they add tens of thousands of yuan.”
“5 changed to 2”
buying a 5 million house is equivalent to “free parking space”
According to the statistics of Hangzhou Shell Research Institute, as of 13:30 on May 17, the listing volume of second-hand houses in Hangzhou, a shell house search platform, was 10 times the average daily listing volume in the past month, the metropolis Express reported; Consultation has also become active. The number of consultations on May 17 increased by 62% compared with the average daily number in April.
At present, among the houses listed on the Hangzhou shell platform, “the only house (i.e. the only house for families)” accounts for 40%, and the houses “over 2 years but less than 5 years” account for 30% of the “only” houses. In other words, the houses that meet the requirements of “full 2 years but less than 5 years” and “only housing” account for 12% of the total houses. How much is this data? There are more than 10000 sets, which does not include the number of other platforms.
The so-called “5 to 2” refers to that in the second-hand housing transaction, the original purchase for less than 5 years and then sale need to pay a value-added tax of 5% of the total price of the house. Now the purchase for more than 2 years does not need to pay value-added tax.
What is the concept of 5% of the total house price? For example, taking a second-hand house with a total price of 5 million as an example, if it meets the “5 to 2”, it can save 250000 yuan of value-added tax, which is equivalent to buying you a parking space.
The higher the total price of the house, the more money you save. If you buy the beautiful riverside city with a total price of 10 million and the green city Liuan Xiaofeng with a total price of 20 million, you can save 530000 and 1.06 million in value-added tax alone. It should be noted that in Hangzhou second-hand housing trading market, the established practice is that the taxes and fees are borne by the buyer.
Ms. Chen, the buyer, bought a new house with a total price of 12 million in Shangcheng district a week ago. The original landlord bought it for two and a half years, less than five years. “If I’m not in such a hurry and buy it in a week, I can save more than Shanghai Pudong Development Bank Co.Ltd(600000) taxes.” Ms. Chen was annoyed.
the effect of the new deal remains to be seen
“Hangzhou should be the city with the largest population in the Yangtze River Delta in recent two years. At the same time, Hangzhou has sold a lot of land and listed a large number of new houses in recent years, which is also the reason for the booming supply and demand of the new house market.” Song Hongwei, research director of Tongce Research Institute, told the daily economic news.
It is worth noting that the new buildings under the price limit in the central urban area of Hangzhou do not worry about selling at all, while other suburban buildings are facing the embarrassing situation of no one’s interest, which is the same situation as many hot second tier cities in Hangzhou.
Zhang Xiangming told reporters, “recently, within the scope of the science and technology city sector, only a new market, Hangzhou future center, has entered the market. However, the project has been opened several times in succession, and the winning rate is 8% ~ 9%, which can not break through 10%.”
From the perspective of de urbanization, the real estate in the main urban area and popular sectors are often basically de transformed on the opening day, while the de urbanization rate of peripheral real estate is generally low, especially in Fuyang and Lin’an districts, the overall de urbanization rate is less than 20%. According to the data of China Index Research Institute, from January 2021 to April 2022, Hangzhou launched a total of 125 offers and 19817 houses, with an average removal rate of only 57%. Projects in the main urban area of Fuyang generally attract customers in the form of direct discount + gift. Gifts include parking spaces, cars, add-on bags, floor heating, gold and other forms, with an average discount of about 10%.
According to Zhongxin Jingwei, Shangguan Jian, President of Hangzhou Shell Research Institute, said: “although the consulting volume, viewing volume and trading volume have increased in recent days, the time cycle is still too short and the sample size is too small. The final effect of Hangzhou’s new deal depends on the next market performance.” As a real estate agent, Lin Shuai’s attitude is also cautious. He said that the policy has just been introduced, and the future changes need to be observed. “It may be that the listing volume of second-hand houses is too large. This policy is mainly aimed at the second-hand housing market. In the future, Hangzhou will sell a lot of land, and there is still room to promote new housing transactions and adjust the proportion of down payment.”
