Beijing, August 8 (Zhongxin Financial Reporter Zuo Yukun) After many departments made intensive statements on optimizing real estate policies on different occasions, Zhengzhou, the capital city of Henan Province with a population of more than 5 million, has once again been on the front line of adjustment.

On August 8, Zhengzhou Housing Security and Real Estate Administration Bureau and other departments jointly issued the Notice on Further Promoting the Stable and Healthy Development of the Real Estate Market in our City (hereinafter referred to as the "Notice"), issuing 3 new policies for the regulation and control of the real estate market, including the implementation of the policy of "recognizing housing without recognizing loans", suspending the implementation of the sales restriction policy, and orderly lowering the interest rate of existing housing loans.

A view of Zhengzhou. Photo by Ding Youming

The first hot city to clearly "recognize housing but not loans"

"Implement the policy of dynamically adjusting the interest rate policy for the first set of new housing personal housing loans, and timely adjust the lower limit of the interest rate of the first set of new housing commercial loans in our city in combination with the assessment situation." Implement the policy of 'recognizing housing but not recognizing loans' to meet the demand for just-needed and improved housing to a greater extent. "In the new policy released by Zhengzhou this time, the part of financial credit support has attracted particular attention.

The analysis pointed out that Zhengzhou has thus become the first hot city to fully introduce real estate regulation and control policies after the official proposal of "timely adjustment and optimization of real estate policies", and it is also the first provincial capital city to clearly announce that it will implement "recognizing housing without recognizing loans".

"Zhengzhou clearly mentioned the implementation of the policy of 'recognizing houses but not recognizing loans', which is of very strong significance, and it is the first city in the country to mention this content in the system document." Yan Yuejin, research director of the E-House Research Institute, said that Chifeng, Inner Mongolia, also expressed its position to implement the policy of "recognizing housing without recognizing loans", but mainly in the field of housing provident fund.

Cao Jingjing, general manager of the index research department of the China Index Research Institute, mentioned that the current policy of "recognizing loans but not recognizing houses" in Zhengzhou is currently implemented, that is, families who have a house and have paid off their purchase loans, implement the first home loan policy, and the policy has been relatively relaxed.

"The policy also mentions 'encouraging commercial banks in Zhengzhou to adjust the interest rates of existing personal housing loans in an orderly manner in accordance with the law', which is also the first hot city after the central bank made a statement on August 8 to clearly adjust the interest rates of existing housing loans." Cao Jingjing said that this is also a problem that the current market and buyers are more concerned about.

In response to the expression of "implementing the long-term mechanism for dynamic adjustment of mortgage interest rate policies", Yan Yuejin expects that this will provide more flexibility for subsequent reductions in mortgage interest rates. In order to reduce the burden on home buyers and increase consumer demand, there may still be room for subsequent mortgage interest rates to fall.

Infographic: Real estate under construction. Photo by Zhang Bin, reporter of China News Agency

The sale restriction policy continues to be relaxed

The Notice points out that for those who purchase improved housing, their original housing will be suspended from the provisions stipulated in the previous document that "housing purchased after May 2017, 5 (inclusive) in the administrative area of Zhengzhou City shall not be transferred on the market for less than 3 years from the date of obtaining the Real Estate Title Certificate".

According to Dong Ximiao, chief researcher of CMF Finance, the suspension of the sales restriction policy is also worth paying attention to. Previously, under the overly strict purchase and loan restriction policies, it was difficult for residents' demand for improved housing to be fully met, which was an important reason why the current housing consumption was difficult to improve.

"Under the 3-year sales period, some properties subscribed during the 3-year period do not have the opportunity to be resold immediately. However, the current lifting of sales restrictions has a very good guiding significance. Yan Yuejin believes that buyers' properties can be resold and revitalized, which has a positive effect on the release of demand for house replacement, and also has a positive and important impact on the destocking of large-sized houses in Zhengzhou.

He said that this is also the policy trend of many cities this year. This is why Fuqing, Fujian Province took the lead in canceling sales restrictions in June, which also shows that from the perspective of reducing constraints, activating housing mobility, and encouraging the release of demand for improved housing, the cancellation of sales restrictions will be a very important feature at present.

According to statistics from the Clarion Research Center, the restrictive housing purchase policy was loosened in the first half of the year. Among them, 14 cities including Guangzhou, Changsha, Xiamen and Wuhan relaxed purchase restrictions; Hunan Province and more than ten cities including Qingdao and Hefei relaxed loan restrictions; 7 cities including Shenzhen, Changzhou and Wuxi relaxed price limits; Zhengzhou, Xiamen, Qingdao and other cities relaxed sales restrictions.

Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Urban Planning Institute, believes that the suspension of sales restrictions is to activate the demand for house replacement, but in the current context, the possibility of increasing the number of second-hand housing listings should be considered.

"At present, the number of second-hand housing listings in Zhengzhou has reached about 15,<> sets, a record high. If the general environment of the property market and the fundamentals have not changed, simply withdrawing from the restricted sale may lead to some property owners listing and selling their houses, and the listing volume will further rise, continuing to suppress market expectations. Li Yujia said.

According to data from Zhuge Housing Search on the evening of August 8, of the nearly 4,14 second-hand houses sold in Zhengzhou, there are more than 2,2100 new listings, 24 units sold at reduced prices within 680 hours, and only 59 sets sold at higher prices.

Data map: Zhengzhou streets. Photo by Liu Peng

Why is Zhengzhou "taking the lead"?

Looking at the current round of real estate policy adjustment cycle, Zhengzhou is a city with a high frequency of occurrence.

For example, in April this year, Zhengzhou adjusted the sales restriction policy to be based on the time of online signing, deed tax payment and real estate registration, and any of the three can be sold for one year. At the same time, policies such as the cancellation of purchase restrictions outside the second ring road, the "transfer with mortgage" of the provident fund, and the support for withdrawing the provident fund to pay the down payment have also been introduced.

Cao Jingjing said that the policy also mentioned deed tax subsidies, housing purchase subsidies, provident fund support, reduction of housing transaction taxes, land payment installments and other measures, all of which have a positive effect on improving market expectations. The relevant formulations such as rent-purchase and urban village renovation are consistent with the recent proposals of the central government and various ministries and commissions, and it is expected that the process of housing ticket resettlement and monetization resettlement will continue to advance.

Zhengzhou's series of deployments are not unrelated to its current real estate market status. According to Clarion data, the transaction and supply of new housing in the main urban area of Zhengzhou in July showed a significant decline, with residential transactions of about 7,40 square meters, down about 21% month-on-month, which has been a decline for six consecutive months.

An industry insider in Zhengzhou deeply experienced the changes in the local market: "Sales have been relatively sluggish recently, and the community I am in is a subway room with a good location and supporting facilities, and the house price per square meter has dropped by more than 2,000 yuan during this period." This measure is still relatively practical and timely, and if it is implemented well, I think it will be better than the 'Zheng 19 Articles' issued last year." ”

He especially mentioned that Zhengzhou real estate is currently in a buyer's market with oversupply, with a large number of listings, and many project stoppages have not been completely solved, resulting in people being more inclined to buy second-hand houses. The new policy also proposed in a timely manner to list one project each in Zhengdong New District and Huiji District as a pilot for "existing house sales", and the "rigid" regulation of "paying money with one hand and handing over a house with one hand" made him look forward to it more. (End)