Canceling purchase and sale restrictions! Beijing ushered in a favorable property market, developers say has long been implemented

Many years of rumors have come true, the abolition of restrictions on purchase and sale is no longer a "slight" word.

August 5, Langfang City, Langfang City, released "Langfang City, solidly promote the city's stable and healthy economic development of the package of measures and supporting policies to understand the card", which "on the support of the real estate industry virtuous cycle and healthy development of the six policy measures" (hereinafter referred to as "Measures"), said clearly, "the abolition of household registration, social security (tax) and other aspects of the real estate market is not adapted to the current situation of restrictive conditions of eligibility for purchase of real estate. restrictive home-buying qualification conditions that are not adapted to the current real estate market situation."

That is to say, Langfang has officially canceled the policies of housing purchase restriction and sale restriction. Since Langfang implemented the purchase and sale restriction policy in 2017, the local real estate market has cooled down significantly. From the "Daily Economic News" reporter interviewed information, developers are not surprised, and said that "has long been implemented", "the customer's sensitivity to the good policy is very low, and even has produced resistance.

From "slightly" to the official official announcement lifted

In June 2017, Langfang began to implement a strict purchase restriction policy, non-local resident families need to pay 3 years of social security or tax certificates to buy a house in the local, limited to one suite. In the five years since then, the property market in Beijing has been nearly frozen, during which the rumors of lifting the purchase restriction have never stopped.

This Langfang policy explains in detail the lifting of the restriction on the sale and purchase of the target group: "the recruitment of high-end talent, investment promotion enterprise executives, Beijing non-capital function of the evacuation of the accompanying personnel to buy the first set, in accordance with the treatment of local household registration. For the 'northern three counties' and the surrounding counties (cities) of the Xiongan New Area and other key areas, the requirement of the housing restriction on the number of years of sale of non-local household registration for residential families is canceled."

Reducing interest rates and down payments also have a considerable degree of concessions, "for loans to purchase ordinary self-owned housing for residential families, the first set of housing commercial personal housing loan interest rate floor adjusted to not less than the corresponding period of the loan market quoted interest rates minus 20 basis points, and strive to 2022 August the city's weighted average interest rate on newly issued personal housing loans compared to April down 30 basis points."

Further reducing the down payment ratio for housing provident fund loans. The down payment ratio is not less than 20% for contributing employees who use housing provident fund loans to buy their first family-owned home. For contributing workers' families who own 1 home and have settled the corresponding home purchase loans, the down payment ratio is not less than 20% when they apply for a housing fund loan again to buy ordinary self-occupied housing. For a contributing employee family that owns 1 home but has not yet settled the corresponding commercial personal housing loan, and applies for a housing fund loan to purchase ordinary owner-occupied housing again, the down payment ratio is not less than 30%.

Since this year, Langfang lifted the restriction on sale and purchase rumors are strong.2022 In April, there are rumors that Langfang has lifted the restriction on purchase, when the reporter had called Langfang Municipal Housing and Urban Renewal Bureau, and got a negative answer.

Including Yanjiao town, including the "northern three counties" has always been lifting the restriction on the sale and purchase of the higher call area, according to the "Daily Economic News" previously reported, as early as May 2020, Yanjiao real estate will claim that "Beijing social security can buy a house! ".

The reporter noted that the "measures" in fact, as early as June 17, published in Langfang Municipal People's Government official website, but at that time for the lifting of the restriction on the sale of restricted purchases of the expression is "slightly".

125.03% increase

"Around Beijing" is a label for Langfang, and it is also the first stop for many northern residents to buy a house. Whether it's Yanjiao, Xianghe, Dafang or Gu'an, there are a large number of northbound buyers, and the impact of the restriction on sales and purchases on the local property market is self-evident.

In early 2021, when the crisis of Huaxia Happiness broke out, the company's chairman Wang Wenwen first of all is that "misjudged the Beijing Ring", he said: "Before 2016, the company's investment layout is focused on the Beijing Ring region. Market sales and returns accounted for more than 90%. Due to the misjudgment of the situation, later continue to increase the investment in industrial new towns and supporting residential investment in Beijing, but the volume and price of the residential market in Beijing fell, the scale of the waist. Preliminary estimates, the cumulative impact of the company's sales return of more than 100 billion yuan over the past four years, while also seriously affecting the value of the industrial new city return and inventory receivables.At the end of 2016, large-scale acquisitions and mergers and acquisitions wildly, but the quality of the project is not high, too much concentrated in the ring of Beijing region, to the asset revitalization to bring greater difficulties."

According to data from the CII, the average price of new homes in Langfang in June 2022 was 11,697 yuan per square meter, down 0.37 percent from a year earlier, an increase of 0.15 percentage points from the previous month.

In terms of land, Langfang's floor price rose year-on-year and fell year-on-year, and the premium rate dipped again, falling below 1%.2022 Langfang's transacted floor price was RMB 3,097/sqm in June 2022, a year-on-year drop of 19.55%, a year-on-year increase of 64.34%; the average premium rate was 0.5%, a year-on-year drop of 22.78 percentage points, a year-on-year drop of 1.02 percentage points, and a premium rate that has continued to lower.

A local resident of Gu'an also recently told reporters via WeChat, "Recently, there is a rising trend in the sales price of fresh-demand properties in Gu'an, probably because of the low interest rate and low down payment."

The CII data also similarly shows the growth in turnover.The scale of Langfang turnover in June expanded by nearly 30% year-on-year, and the cumulative scale of turnover increased by nearly 10% year-on-year.2022 The scale of Langfang's commercial residential turnover in June was 343,000 square meters, an increase of 32.04% year-on-year, and a sharp increase of 125.03% year-on-year.2023; the cumulative scale of Langfang's commercial residential turnover in the first half of the year was 1,518,100 square meters, an increase of 11.97% year-on-year. million square meters, an increase of 11.97% year-on-year.

"Implemented a long time ago"

The policy has been met with mixed reactions.

Yan Yuejin, research director of the E-House Research Institute's Think Tank Center, told reporters via WeChat on Aug. 9: "The orientation of similar cities to relax the property market policy in the second half of the year is very clear, and the willingness to boost the real estate market's trading quotient is very strong, which also promotes the healthy development of the real estate market to a large extent. The policy has also inspired Tangshan, Hengshui, Xingtai, Chengde, Cangzhou and other places around Beijing."

But Chen Wenjing, director of market research at the index division of the China Index Research Institute, said via WeChat on August 9, "From the perspective of policy effects and market trends, the previous policy of removing the purchase restriction in Langfang city and the 'three northern counties' has been implemented, and the downpayment ratio has been enforced to be 20 percent for the first set, two sets of 30%, mortgage interest rate minimum implementation of 4.25%, but the market has not rebounded."

"The reason for this, on the one hand, the rapid warming of the market in the first few years around Beijing mainly rely on Beijing's spillover of self-occupation and investment demand driven, and in recent years, Beijing's housing supply has gradually increased, while the epidemic prevention and control of the strict, the ring of Beijing cross-city commuting has been affected to a certain extent, the spillover of the demand for Beijing basically disappeared; on the other hand, the ring of the region of the Beijing in recent years the industry is less than expected development, population On the other hand, the industrial development of the Beijing-ring region has been less than expected in recent years, and the population importation is limited. In the market downturn phase, the pace of local fresh demand has also slowed down. Therefore, even if the abolition of restrictions on purchase and sale and other policies, the effect of the boost to the trading market or limited, short-term Langfang area real estate market adjustment trend or difficult to change."

Developers have not reacted too positively to the policy.

A developer said to the "Daily Economic News" reporter via WeChat on August 9: "Langfang officially lifted the purchase restriction, the effect of boosting the market is limited. Before this, the first line has long been implemented. According to the first-line sales staff in Langfang, the customer's sensitivity to the favorable policy is very low, and even has produced resistance."

Another developer said to the reporter by phone on August 9: "Langfang lifted restrictions on purchase and sale, for the regional market and the local real estate enterprises is certainly a good thing, but we are still quite calm internally on the whole. In fact, Langfang's favorable policies have been implemented in the first half of the year, but there is no sign of rebound in terms of housing prices. Today for real estate, has not been a policy to limit the sale and purchase of a policy can have a wide range of impact, but also need to look at the epidemic, income, confidence and a series of factors, and the real estate market is not a regional thing."