Guangzhou Business Services Limited Purchase Loosening! Individuals can buy, unlimited area, will other cities follow up?
On March 3, Guangzhou Commercial Service (apartments, shops, office buildings) properties were lifted from purchase restrictions, no longer restricting the minimum divided area, and can be sold to individuals. This is based on the partial liberalization of Guangzhou at the end of 2018. The restriction on purchases has been further liberalized. The purchase restriction policy for commercial-owned apartments that has existed for nearly three years has been officially cancelled.
In the industry's opinion, the release of commercial service restrictions in Guangzhou is intended to enhance the vitality of commercial real estate under the influence of the new crown pneumonia epidemic. Guangzhou, the first city to restrict purchases and lift restrictions on business services, also has reference to other cities. This move not only objectively stimulates the de-stocking of commercial properties, but for some companies, it can also accelerate the liquidity of projects and ease the pressure on funds.
Guangzhou has lifted commercial service restrictions
On March 3, the City of Guangzhou announced in Article 31 of the "Notice on Several Measures to Resolutely Win the New Crown Pneumonia Epidemic Prevention and Control Slam Fighting and Efforts to Achieve the Economic and Social Development Goals and Tasks of the Year" in Guangzhou. The business service project was not completed The minimum division unit is no longer limited in the application for construction procedures; the sales target is no longer limited in the commercial service project, and the transfer target is no longer limited in the registered business. The purpose of this move is to optimize the construction and sales management of commercial service projects.
It is reported that as early as 2017, Guangzhou's "March 30" policy restricted the development, construction, sales and use of commercial real estate projects. At that time, it was stipulated that it must not be changed to residential use without approval, and the minimum divided unit must not be less than 300 square meters, and the sales object was a legal entity.
Because the policy was too strict, Guangzhou's commercial service property transaction volume fell sharply. According to the “China Baicheng Commercial Real Estate Report” of the E-House Research Institute, in the 12 months before March 2017, the average monthly sales of commercial service properties in Guangzhou amounted to approximately 160,000 square meters. In the 12 months after the introduction of the tightening policy on commercial service properties, the average monthly turnover fell to 40,000 square meters.
However, more than a year after the implementation of the “March 30” policy in Guangzhou, the sales targets of commercial service properties have been partially liberalized. At the end of 2018, the State Council of Guangzhou published on the official website the "Opinions of the Guangzhou Housing and Urban-Rural Development Committee on Improving Sales Management of Commercial Real Estate Projects". The document stipulates that for real estate projects that have been land-sold before March 30, 2017, their commercial service properties are no longer limited to sales targets, but individuals who purchase commercial service properties must obtain a real estate certificate for 2 years before they can be transferred.
After the above-mentioned partial unbundling policy, the market volume quickly recovered. The issue of product inventory before the “3 · 30” policy was resolved.
Since then, in July 2019, Guangzhou commercial service projects were once again activated. In the "Guiding Opinions of Guangzhou Commercial and Commercial Offices on Renovation of Existing Houses and Leased Houses" issued in Guangzhou, it was proposed that non-commercial and commercial office and other types of non-commercial and commercial offices have been completed, completed land use procedures, or have undergone initial registration Housing stocks can be converted into leased houses in accordance with regulations.
The policy introduced by Guangzhou today is to further loosen business service projects. "This policy is based on the 2018 policy, expanding the scope of unrestricted commercial service items, which is equivalent to lifting the ban in full, and can be sold to individuals, and there is no minimum area requirement." Zhang Dawei, chief analyst of Zhongyuan Real Estate, analyzes Called. This also means that the sales of commercial service products after the “March 30” policy in Guangzhou are no longer restricted.
Restricted purchases in the city's commercial market slump, both volume and price fall
It is reported that as early as 2017 in the property market regulation, Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and other cities have implemented regulatory policies for commercial projects.
From the current point of view, the national commercial service (multiple cities are referred to as "commercially-run") purchase restrictions are mainly reflected in the restrictions on the minimum division unit, the sales target, and the purchase of commercial-run loans. For example, Guangzhou had previously limited the minimum division unit to 300 square meters, and the sales target was a legal person unit.
Beijing, which has the strictest commercial purchase restriction policy, has implemented the purchase restriction policy for almost three years. On March 26, 2017, Beijing required that commercial projects should not be changed to residential and other uses without authorization, and the minimum divided unit should not be less than 500 square meters; loans for commercial projects were suspended for individuals, and new commercial projects could not be sold to individuals; and If a second-hand commercial project is sold to an individual, it is required that the individual has no record of housing and commercial real estate in Beijing and must pay social security or pay taxes for five consecutive years.
Since the release of the policy, like Guangzhou, the transaction volume of commercial projects in Beijing has also become frozen. According to statistics from the Central Plains Real Estate Research Center, starting from March 26, 2017, within two years of Beijing's implementation of commercial-restricted purchases, there were only 6,550 online signings, and the transaction volume plummeted by 94%. Prices have also fallen by more than 40%.
In this regard, Zhang Dawei said that in several cities where commercial property purchases were strictly restricted, the market has been very depressed over the past few years, with both volume and price falling. Previously, in the industry's opinion, except for Guangzhou, which gradually revitalized the stock of business services, other cities did not see signs of relaxation.
Industry: Helps to boost the vitality of commercial real estate in the epidemic
Regarding the loosening of commercial service properties in Guangzhou, in the industry's opinion, the main purpose is to cope with the impact of the new crown pneumonia epidemic and improve business vitality. Previously, due to purchase restrictions, the business service market has cooled down significantly. This time, affected by the new crown pneumonia epidemic, offline businesses such as catering and retail have been hit. This has led to a sharp decline in business service rents and pressure on corporate funds. It's getting harder to do deals.
Yan Yuejin, research director of the Think Tank Center of the E-House Research Institute, believes that the introduction of this policy in Guangzhou also indicates that the inventory pressure of commercial service projects has increased. By relaxing, it objectively stimulates the destocking of commercial service properties, which helps sales of related companies and reduces financial pressure. At the same time, because of the reduction of the minimum division unit, it is helpful for the planning of commercial service projects, and has created conditions for subsequent housing companies to reduce development and sales costs.
"The loosening of the Guangzhou commercial service project is definitely conducive to the active market." Zhang Dawei also believes that, as a whole, this policy is more conducive to the unraveling of enterprises holding this type of land reserve. For some companies, the liquidity of projects can be accelerated. At the same time, Guangzhou's move is conducive to solving the problem of large stocks of commercial service projects and gradually digesting inventory.
As the first Guangzhou to relax the commercial service purchase restriction city, Yan Yuejin believes that it has released a very strong signal, has a strong demonstration effect, and has a positive reference role for other cities, while other commercial purchase restriction cities Whether or not to follow up is currently unclear. However, some in the industry are optimistic that cities will follow up in the future.
Beijing News reporter Yuan Xiuli