Foshan, Dongguan cancels the purchase restriction, and a new round of property market regulation starts again

(Economic Observer) Foshan, Dongguan cancels the purchase restriction, and a new round of property market regulation starts again

　　China News Agency, Beijing, December 26th (Reporter Pang Wuji) China's new round of real estate regulation and control policies have begun to land.

　　On the 26th, Dongguan City, Guangdong Province announced that it would withdraw from housing purchase restrictions.

On the same day, Dongguan City issued the "Notice on Further Optimizing Real Estate Control Policies".

Among them, it is proposed that the newly-built commercial housing and second-hand commercial housing in Dongguan City Guancheng Street, Dongcheng Street, Nancheng Street, Wanjiang Street, and Songshan Lake High-tech Industrial Development Zone will suspend the implementation of the commodity housing purchase restriction policy.

At the same time, a "2-year sales restriction" is implemented for new houses in these areas.

　　In July this year, Dongguan narrowed the housing purchase restriction area to the above-mentioned streets and development zones.

　　Judging from the current real estate market trends, the direct reason for the cancellation of purchase restrictions is to release the potential of housing consumption to a greater extent and stabilize the real estate market.

　　Li Yujia, chief researcher at the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, pointed out that after the Central Economic Work Conference, expanding domestic demand and giving play to the basic role of consumption has become one of the themes of the property market.

He believes that in "clothing, food, housing, and transportation", the space and marginal effects of clothing, food, and transportation are not as good as housing, and the potential or space for living is very large, especially housing improvement, which will be the main force of future housing consumption.

　　From the perspective of Dongguan, Li Yujia said that among the local permanent population of over 10.53 million, more than half of the non-registered population mainly live in urban villages. The city's housing ownership rate is only about 50%, and housing conditions need to be improved urgently.

By canceling the restrictive housing purchase policy, Dongguan still has great potential in releasing housing demand.

　　Dongguan is not the first city to fully withdraw from purchase restrictions.

On December 9 this year, Foshan, another big city with a GDP exceeding one trillion yuan (RMB), also announced that it would no longer impose restrictions on housing purchases.

　　Prior to this, core second-tier cities such as Xi'an, Hangzhou, Wuhan, and Nanjing all introduced policies to shrink or adjust purchase restrictions.

　　For example, part of the purchase restriction area in the main city of Nanjing has been partially released, and one additional house can be purchased on the basis of the current house purchase policy for the talent gathering areas outside the city such as Hongshan New City in Xuanwu District.

For household registration families with members aged 60 and above, they can purchase an additional house. For residents who have been working in Nanjing for a long time but pay social security or personal tax in other places, they can purchase a house in Nanjing by providing proof of residence for half a year or more.

　　Li Yujia believes that this means that a new round of policy relief on the demand side of the real estate market has begun.

　　Yan Yuejin, director of the think tank of E-House Real Estate Research Institute, believes that some cities have too strict purchase restriction policies, which have affected the stable recovery of the property market. This is the main contradiction of not accurately grasping the current property market.

The cancellation of purchase restrictions in Dongguan also means that all localities should take the initiative to reduce constraints and obstacles to the real estate transaction market, and truly provide new impetus for a new round of property market recovery.

　　Guan Rongxue, a senior analyst at the Zhuge Housing Data Research Center, believes that the current real estate market needs to be accelerated, and the financial support for real estate policies should be exhausted, and policies should be implemented according to the city to give full play to the positive effects of the policy.

It is expected that after Dongguan and Foshan, there will be more popular second-tier cities to follow up and cancel housing purchase restrictions.

Guan Rongxue believes that in the future, except for first-tier cities, other cities may completely cancel the purchase restriction policy.

　　The accelerated withdrawal of restrictive policies may become a major feature of the real estate policy in 2023.

Qiu Baoxing, former vice minister of the Ministry of Housing and Urban-Rural Development, said that the vulnerability of the real estate market has increased significantly recently.

He believes that the real estate market must develop steadily, strengthen the resilience of the real estate market, and prevent the introduction of policies that are directly or indirectly unfavorable to the market.

　　According to the statistics of the China Finger Research Institute, as of December 26, more than 330 places in China have issued more than a thousand easing policies for the property market, of which 112 policies in 48 cities involve optimizing purchase restrictions.

(use up)