What positive signals does the favorable property market continue to send?

[Economic Observer] What positive signals does the favorable property market continue to send?

　　Our reporter Shi Lina

　　"Worker Daily" (Page 4, February 20, 2024)

　　Since the beginning of this year, favorable policies for the real estate market have appeared frequently: the establishment of financing coordination mechanisms has been accelerated, purchase restriction policies have continued to be optimized, and many places have launched preferential policies for returning home buyers...A series of measures to promote the stable and healthy development of the real estate market have been implemented rapidly, and continue to release positive effects to the market. Signal.

　　On January 12, the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision issued the "Notice on Establishing an Urban Real Estate Financing Coordination Mechanism" to implement the spirit of the Central Financial Work Conference and require equal treatment to meet the reasonable financing needs of real estate enterprises of different ownerships. Cities at prefecture level and above It is necessary to establish a real estate financing coordination mechanism to more accurately support the reasonable financing needs of real estate projects in the form of a list of real estate projects.

　　Subsequently, the "progress bar" of promoting a virtuous cycle of finance and real estate continued to be refreshed, and a real estate financing coordination mechanism was steadily established. At present, real estate “whitelist” project loans have been implemented in Nanning, Chongqing, Qingdao and other places. Taking Qingdao as an example, the city's first batch of 84 projects has been pushed to financial institutions across the city. After the list was pushed, a total of 13 projects have been approved for credit of 4.29 billion yuan. The selection, new credit and capital investment of Qingdao's "white list" projects adhere to the spirit of covering development projects of local state-owned enterprises, local private enterprises, and local mixed-ownership enterprises, and meeting the reasonable financing needs of real estate enterprises of different ownerships without discrimination.

　　While the financing coordination mechanism is being established at an accelerated pace, the property market purchase restriction policy is also continuing to be optimized. On January 26, the Ministry of Housing and Urban-Rural Development held a meeting and called for insisting on city-specific policies, precise policies, and one policy for one city, making good use of the policy toolbox, and fully giving cities autonomy in real estate regulation, so that cities can adjust real estate policies according to local conditions.

　　The policy received positive response from various places and was quickly implemented, with first-tier cities concentrating on relaxing property market purchase restrictions. On January 27, Guangzhou issued a new policy for the property market, canceling the purchase restriction on houses above 120 square meters; on January 30, Shanghai optimized its housing purchase restriction policy to support the purchase of houses by single people who are not registered in the city. Entering February, cities such as Beijing and Shenzhen have also adjusted their purchase restrictions. Beijing's Tongzhou has optimized its dual-limit policy for home purchases, and Shenzhen has canceled the residence and social security requirements for home purchases.

　　The purchase restriction policy was once an important means of regulating the property market, effectively curbing excessive rise in housing prices and speculation. At present, based on the new situation of major changes in the supply and demand relationship in my country's real estate market, the adaptability of the purchase restriction policy has declined. The industry generally believes that timely adjustments and optimization of purchase restriction policies in first-tier cities will help increase market transaction activity.

　　In addition to increasing financial support and optimizing purchase restriction policies, during the rush to return home during the Spring Festival that just passed, various localities also used local financial subsidies and promotional discounts from real estate companies to attract people to buy homes. Chongqing, Hubei and other places have launched preferential policies for returning home buyers, including home purchase subsidies, deed tax subsidies, etc.; many real estate companies have increased customer reach and accelerated sales through promotional activities such as "No Closing during the Spring Festival".

　　Favorable policies are frequently released, and the second-hand housing market has a good start in the new year. According to monitoring by the Shell Research Institute, during this year’s Spring Festival holiday, the number of second-hand house inspections and transactions in 50 key cities has rebounded significantly compared with 2023, and the transaction volume of second-hand houses has increased by more than 70% year-on-year. Especially in second- and third-tier cities, policy optimization efforts have been relatively strong, and housing price adjustments have reached a certain stage, and consumers’ willingness to view houses has been fully activated.

　　In terms of the new home market, monitoring data from the China Index Research Institute shows that during the Spring Festival holiday, the new home market performed relatively flatly, and consumers still had a strong wait-and-see sentiment. Chen Wenjing, market research director of the China Index Research Institute, said that in the short term, market sentiment in cities such as Beijing and Shenzhen has rebounded due to policies, but the performance on the transaction side is not yet obvious; cities such as Shanghai are affected by travel and return home, and the market activity during the holidays is insufficient. It is expected to gradually pick up after the holiday.

　　The continued optimization of property market policies has played a positive role in stabilizing market expectations and boosting confidence. Many institutions predict that after the Spring Festival holiday, the effects of relevant policies are expected to be further apparent, and market activity may rebound. As more cities optimize purchase restriction policies, implement superimposed financing coordination mechanisms and implement supply and demand policies, it is expected to further stabilize the real estate market and lay a good foundation for the next development.