Stabilization of housing prices in July will lead to more timely and accurate regulation
　　 Our reporter Kang Shu

　　On August 14th, the National Bureau of Statistics released the statistical data on the changes in the sales prices of commercial residential buildings. The real estate market prices in 70 large and medium-sized cities were generally stable in July, and the sales prices of new commercial residential buildings and second-hand residential buildings declined month-on-month or were the same as last month.

　　Kong Peng, chief statistician of the City Department of the National Bureau of Statistics, said that in July, various localities thoroughly implemented the deployment of the Party Central Committee and the State Council, insisting on the positioning of houses for living, not for speculation, and not using real estate as a short-term economic stimulus. Stabilizing land prices, housing prices, and expectations, implementing policies for different cities, one city, one policy, timely scientific and precise control, and promoting the stable and healthy development of the real estate market.

　　Kong Peng introduced that in July, preliminary estimates showed that the sales price of newly-built commercial housing in 4 first-tier cities increased by 0.5% month-on-month, and the increase was 0.1% lower than the previous month. Among them, Beijing, Shanghai, Guangzhou and Shenzhen rose 0.3%, 0.4%, 0.8% and 0.6% respectively. The sales price of second-hand housing rose by 0.7% month-on-month, and the increase was 0.3% lower than the previous month. Among them, Beijing remained flat, while Shanghai, Guangzhou and Shenzhen rose 0.5%, 1.6% and 1.2% respectively. The sales price of newly built commercial housing in 31 second-tier cities increased by 0.5% month-on-month, 0.4 percentage points lower than the previous month; the sales price of second-hand housing increased by 0.5% month-on-month, the same as the previous month. The sales prices of newly built commercial housing and second-hand housing in 35 third-tier cities increased by 0.8% and 0.5% respectively from the previous month, the same as the previous month.

　　Data show that in July, the year-on-year increase in the sales prices of newly built commercial housing and second-hand housing in first-tier cities increased slightly, while the increase in second- and third-tier cities continued to decline.

　　Kong Peng introduced that in July, preliminary estimates showed that the sales prices of newly-built commercial housing and second-hand housing in first-tier cities rose 3.6% and 5.7% year-on-year, respectively, an increase of 0.3 and 0.5 percentage points respectively from the previous month. The sales price of newly built commercial housing in second-tier cities rose 5.1% year-on-year, 0.2 percentage points lower than the previous month; the sales price of second-hand housing rose 2.0% year-on-year, the same as the previous month. The year-on-year increase in the sales prices of newly-built commercial housing and second-hand housing in second-tier cities has been the same or has fallen for 15 consecutive months. The sales prices of new commercial housing and second-hand housing in third-tier cities rose by 4.5% and 1.8% year-on-year, respectively, and the increase was 0.1 and 0.2 percentage points lower than the previous month, both of which were the same or declined for 16 consecutive months.

　　The reporter combed and found that in July, among 70 large and medium-sized cities, 59 cities where the price of newly-built commercial housing rose compared with the previous month, 5 were flat, and 6 were down. Cities with higher gains were: Yinchuan rose 2.0%, Xuzhou rose 1.6%, Tangshan rose 1.4%, Wuxi rose 1.3%, Jinzhou and Jining rose 1.1%, Dandong and Huizhou rose 1.0%. The six cities that fell were Taiyuan, Mudanjiang, Anqing, Beihai, Nanchong, and Zunyi.

　　In terms of second-hand housing, in July, among the 70 large and medium-sized cities, 45 cities had an increase compared with the previous month, 5 cities were flat, and 20 cities had a decline. Cities with higher gains were: Guangzhou rose 1.6%, Hangzhou rose 1.3%, Shenzhen, Yinchuan and Wuxi rose 1.2%, Ningbo rose 1.1%, Xining and Qinhuangdao rose 1.0%.

　　At the beginning of 2020, the real estate market was obviously in a downturn under the influence of the epidemic. As the epidemic prevention and control situation continued to improve, the market accelerated its recovery, especially in May and June, both investment and sales were active. It is particularly noteworthy that signs of overheating have appeared in some cities, and some cities have a strong atmosphere of speculation, and there has even been a scene of tens of thousands of people snapping up hundreds of houses.

　　In this context, relevant central meetings have continuously sent clear signals.

　　The Political Bureau of the CPC Central Committee pointed out at a meeting on July 30 that insisting on the positioning of houses for living, not for speculation, and promoting the steady and healthy development of the real estate market.

　　The real estate work seminar held on July 24 pointed out that we firmly adhere to the positioning of houses for living, not for speculation, insist on not using real estate as a short-term means of stimulating the economy, and insist on stabilizing land prices, housing prices, and expectations. Implementing policies for different cities, one city for one policy, and based on local conditions, adopt differentiated control measures, timely scientific and precise control, and ensure the stable and healthy development of the real estate market.

　　In addition, the central bank, the Ministry of Finance and other ministries and commissions have also constantly emphasized the positioning of "housing and housing not speculating."

　　Zhang Dawei, chief analyst of Centaline Real Estate, believes that the epidemic has not and will not change the policy tone of "housing and not speculating". The central meeting once again emphasized the positioning of "housing and not speculating", which shows that the central government has a firm attitude towards the real estate market and will maintain policy stability and continuity.

　　According to incomplete statistics, since July this year, more than 10 cities including Shenzhen, Hangzhou, Zhengzhou, Dongguan, Nanjing, Ningbo, Changchun, and Haikou have introduced tightening policies for the property market. Some cities have experienced partial overheating, and the city government, which is responsible for the regulation and control, introduced timely regulation and control measures to cool the property market, demonstrating the determination of the cities to promote the steady and healthy development of the real estate market.

　　Control measures are also more targeted. Zhang Dawei believes that the recent regulation of the property market has targeted the purchase of multiple homes, including "fake settlements," "fake divorces," and "fake talents," adding "patches" to existing policies.

Kang Shu

Kang Shu