Real estate policy "attracting attention from all"! This weekend, Beijing and Shenzhen made announcements to implement new policies in Hefei.

Everyone is paying attention to the new real estate policies in various regions!

After the Central Political Bureau meeting proposed to "timely adjust and optimize real estate policies" and the Ministry of Housing and Urban-Rural Development clarified the direction and content of policy support, many places have begun to follow up and implement. Among the first- and second-tier cities, Beijing, Shenzhen, and Hefei took the lead in expressing their positions.

On the evening of July 29th, the Beijing Municipal Commission of Housing and Urban-Rural Development stated that it will combine the actual situation of the Beijing real estate market and work closely with relevant departments to vigorously support and better meet the rigid and improvement housing needs of residents, and promote the stable and healthy development of the Beijing real estate market.

On July 30th, the Shenzhen Municipal Bureau of Housing and Urban-Rural Development also stated that it will combine the actual situation of the Shenzhen real estate market and work closely with relevant departments, central agencies stationed in Shenzhen, and various districts to implement and better meet the rigid and improvement housing needs of residents.

According to the Hefei Daily, on the afternoon of July 28th, the Hefei Real Estate Work Special Meeting clarified the following work measures to be improved:

First, boldly and prudently promote the pilot of "selling existing houses" for commercial housing, and focus on one pilot project in Shushan District and Baohe District.

Second, to avoid excessive proportion of public area, actively explore the pricing of commercial housing based on the internal area.

Third, the transformation of "urban villages" is a public welfare project, not a profit-making project. Boldly explore the "targeted listing and agreement transfer" of land supply.

Fourth, vigorously promote diversified resettlement methods such as monetary resettlement and housing ticket resettlement, and make every effort to allow residents to be resettled earlier, faster, and more flexibly.

Fifth, try to cancel the differential rate of commercial housing floor prices and give pricing power to the market.

Sixth, try to synchronize the pre-sale permit application for parking spaces and garages with commercial housing, but bundling sales is strictly prohibited.

Seventh, explore the overall acceptance of underground parking lots in real estate projects. Once qualified, the pre-sale permit can be processed. This measure is conducive to improving the quality of underground parking lot construction and preventing problems such as water leakage caused by rushing construction.

Eighth, implement "full-process agency" and comprehensively promote "acquiring land and starting construction, starting construction and building, delivering houses and issuing certificates".

Ninth, adhere to and improve the system of land bidding, auction, and listing for transfer, use the "competition for quality" mechanism, explore competitive negotiation transfer methods, and give priority to high-quality real estate companies that have "no unfinished projects", "no task of delivering unfinished projects", "no property management problems", and "no engineering quality problems".

Ten is to strengthen the joint supervision of pre-sale funds for commercial housing with strict regulations to prevent fund misappropriation.

Policy Direction Set by the Political Bureau Meeting, Policy Direction Clarified by the Ministry of Housing and Urban-Rural Development

The Political Bureau of the Communist Party of China held a meeting on July 24, pointing out that there have been significant changes in the supply and demand relationship in China's real estate market. It proposed to "adjust and optimize real estate policies in a timely manner, adopt targeted policies in accordance with local conditions, make good use of policy tools, better meet the rigid and improvement housing needs of residents, and promote the stable and healthy development of the real estate market."

After the important policy direction was set by the Political Bureau meeting, the Ministry of Housing and Urban-Rural Development made a statement on the specific direction and content of the policy adjustment.

On July 27, Ni Hong, Minister of Housing and Urban-Rural Development, said at a recent symposium with enterprises that efforts should be made to consolidate the stable recovery of the real estate market, vigorously support the rigid and improvement housing needs, further implement policies such as reducing the down payment ratio and loan interest rates for first-time homebuyers, tax and fee reductions for housing upgrades, and the policy of "recognizing the house without recognizing the loan" for individual housing loans. Efforts should also be made to ensure the delivery of completed projects and effectively protect the legitimate rights and interests of the people.

Among them, the policy of "recognizing the house without recognizing the loan" has attracted much attention in the market. "Recognizing the house without recognizing the loan" means that commercial banks determine the loan-to-value ratio based only on whether the household owns a house locally, regardless of whether the homebuyers have a housing loan record. This standard is less strict than "recognizing the house and recognizing the loan" but stricter than "recognizing the loan without recognizing the house".

How will "recognizing the house without recognizing the loan" be implemented in first-tier cities?

According to China News Network, at present, only first-tier cities and a few strong second-tier cities strictly implement the policy of "recognizing the house and recognizing the loan". If the policy of "recognizing the house without recognizing the loan" can be implemented, it will stimulate the recovery of the real estate market in these cities.

The Shell Research Institute believes that the implementation of "recognizing the house without recognizing the loan" can reduce the cost of upgrading houses and accelerate the release of improvement demand. On the one hand, it enables the circulation of rigid demand and improvement groups. The improvement group will list their existing houses for sale, increase the supply of houses for rigid demand, meet the demand of rigid demand buyers, and achieve a virtuous cycle of rigid demand and improvement groups. On the other hand, the improvement group sells their second-hand houses and purchases new houses, promoting a virtuous cycle of second-hand houses and new houses. Furthermore, the sales of new houses will improve, real estate companies will receive payments faster, their confidence in land acquisition and investment will increase, and the land market will be restored, ultimately achieving a virtuous cycle of the real estate market and the industry.

Ping An Securities also believes that "recognizing the house without recognizing the loan" benefits the release of improvement demand:

Currently, some core cities still implement the credit policy of "recognizing the house and recognizing the loan", which increases the cost of upgrading houses for improvement demand. This meeting clearly stated the implementation of the policy of "recognizing the house without recognizing the loan" for individual housing loans, and it is expected that the subsequent credit policy in core cities will be optimized, which will greatly reduce the threshold for improvement demand in property purchases and activate the entire real estate transaction market. However, some analysts also point out that if the policy of "recognizing houses but not recognizing loans" is fully implemented in first-tier cities, it may lead to a rapid increase in housing prices.

Zhang Dawei, Chief Analyst at Zhongyuan Real Estate, said that if the policy of "recognizing houses but not recognizing loans" is thoroughly implemented, it would allow a large number of homebuyers who were originally classified as second-home buyers to regain their eligibility as first-home buyers. This policy would have a significant impact. In this case, the real estate markets in cities like Beijing and Shanghai may become hot again, and even attract homebuyers from other cities.

Zhang Dawei also mentioned that if the policy of "recognizing houses but not recognizing loans" is implemented with certain conditions, such as a slight reduction in down payment ratio and loan interest rates, or only applicable in new urban areas and suburbs, or limited to families with two children or families living with elderly parents, and requiring social security in the city, etc., the policy would not significantly stimulate the market.

Considering the clear effectiveness of the policy of "recognizing houses but not recognizing loans," Zhang Dawei believes that it is highly likely that first-tier cities will implement the policy with additional conditions. This would improve the market without excessively stimulating the rise in housing prices.