Many places to stabilize the property market new policy favorable to reasonable demand: "five limits" adjusted one after another, the policy "red line" is still in the

April 12, Nanjing Liuhe District Real Estate Transaction Management Center confirmed that, from that day onwards, foreign household purchasers, can be restricted to buy a home in Nanjing Liuhe District, with the account book, ID card, married families with marriage certificates and other proof, you can go to the local proof of purchase. That is, Liuhe District officially adjusted the purchase restriction policy.

Lishui District in Nanjing has also introduced the same policy. So far, two districts in Nanjing have liberalized their home-buying eligibility to foreign household registration.

On April 11, Suzhou also made adjustments to its purchase and sales restriction policies at the same time. Among other things, the limit on the sale of second-hand houses was changed from five years to three years. When a non-resident family applies for the purchase of a first home within Suzhou city, Kunshan city and Taicang city, the social security (personal tax) has been changed from 24 consecutive months of payment within three years to a total of 24 months.

Under the idea of one city, one policy, a number of cities have recently made adjustments to their property market policies. Among them, the "five limits" policy, represented by restrictions on purchases and sales, has also seen some adjustments, reflecting the policy's support for the demand side.

The real estate "five limits" refers to the purchase limit, the loan limit, the sale limit, the price limit, as well as the limit of business, which is China's most stringent restrictive home-buying policy, "five limits" superimposed on the last round of property market regulation and control of the important symbols. Analysts believe that the "five limits" policy adjustments, reflecting the subtle shift in regulatory policy from inhibition of demand to support. But at the same time, to prevent the market from overheating, the policy "red line" still exists.

Strong second-tier cities out

Nanjing, Suzhou, two adjustments to the property market policy, is the epitome of the recent optimization of the property market environment in many places. According to incomplete statistics, 2022 has been close to 70 cities released the introduction of new policies to stabilize the property market. Since April alone, there are nearly 10 cities have launched different strengths to stabilize the real estate market policy.

From the content of the policy, the main performance is to reduce the minimum down payment ratio, lower mortgage interest rates, increase the amount of provident fund loans, increase the introduction of talent, the issuance of subsidies for the purchase of housing and other aspects.

There are precedents for adjustments to purchase and sales restrictions.

In late March, Fuzhou introduced a policy for non-five-city households (including Hong Kong, Macao and Taiwan) to purchase a home in the five cities of Fuzhou, without having to provide proof of medical social security or tax payment for 12 months in the past two years, or settlement, you can purchase an ordinary residence of 144 square meters or less in the five cities of Fuzhou.

Sale restriction policy, Harbin at the end of March canceled the implementation of nearly four years of the main urban area sale restriction policy, thus becoming the first to cancel the sale restriction policy of the provincial capital city.

Prior to this, Jining City, Shandong Province, canceled the second-hand house "limited sale" restrictions; Qingdao City, Jimo District, will be the new housing transactions limited sale period from the certificate of five years to the net signing of five years, second-hand from five years to two years. April 1, Quzhou issued a notice to optimize the limited purchase, limited sale policy, to become this year's first city to cancel the purchase and limited sale policy, the first city in the country at the same time. city that canceled the purchase and sale restrictions.

"The significance of Nanjing and Suzhou's adjustment of purchase and sales restriction policies is that it means the adjustment of restrictive policies on the property market has been extended to strong second-tier cities." Yan Yuejin, research director of the E-House Research Institute's Think Tank Center, told the 21st Century Business Herald that Zhengzhou, Harbin, Fuzhou and other cities that had previously made similar adjustments mainly belonged to the ranks of second-tier or weak second-tier cities.

In addition to the adjustments to the purchase and sales restriction policies, the loan restriction policy has also been loosened with the adjustment of the credit policy. Recently, a number of cities have lowered the minimum down payment ratio and raised the amount of provident fund loans, while Zhengzhou, Lanzhou and other cities have abolished the "recognition of houses and loans", which are considered to be the rationalization of the policy of restricting loans.

Price limits, a number of real estate companies told the 21st Century Business Herald that since this year, hot cities have generally relaxed the control of the pre-sale price of new homes, but due to the purchasing power has not yet been fully restored, the price of the improvement has not been reflected in the level of transactions.

So far, the "five limits" policy, in addition to the "restriction of business" has not yet had substantive adjustments, the other four restrictive policies have appeared to a certain extent of adjustment.

Yan Yuejin said, began in 2017, the round of property market regulation and control, "five restrictions" superimposed on the most important representative policy, but also constitute China's most stringent restrictive home purchase policy. The adjustment of the "five limits" also means that the restrictions on the demand side are being conditionally relaxed.

Policy "red line" is still in

The regulatory policy shift to support demand, there have been signs. The Central Economic Work Conference held in December last year pointed out that support for the commercial housing market to better meet the reasonable housing needs of home buyers. Since then, a number of regulators have made similar statements, and local governments have also introduced relevant favorable policies.

Entering 2022, support for reasonable demand has become one of the main themes in property market policies around the world. Among them, in addition to rigid demand, improvement demand also ushered in favorable. Recently, much attention has been paid to encouraging the elderly to invest in the elderly, the abolition of "recognizing the house and recognizing the loan", two and three children's families to relax the restriction on the purchase of measures, are focused on the support of the improvement of the demand.

Yan pointed out that China is still in the stage of rapid urban development, housing demand is relatively strong. But from the point of view of demand stratification, some big cities have entered a stage where improvement demand is dominant. The fulfillment of these demands is of great significance in stabilizing the property market.

From the market trend, due to a variety of reasons, the effect of these policies will take time.

March 1, Zhengzhou City, issued a "notice on the promotion of benign cycle and healthy development of the real estate industry," in support of reasonable housing demand, improve the housing market supply, increase credit financing support, promote the resettlement housing construction and transformation, optimize the real estate market environment and other five aspects of the launch of 19 measures to stabilize the property market. Because of the greater support, Zhengzhou has also been called "the first city to lower the threshold of the loan to improve demand"

Chen Wenjing, director of market research at the index division of the China Index Research Institute, pointed out that after the introduction of the policy, the number of visitors to the new houses in Zhengzhou has increased, especially the core of the high-quality projects have been improved. According to preliminary statistics, in March, the scale of each weekly transaction has improved, in February under the low base, the average weekly turnover area in March compared with the average weekly turnover area in February increased by about 50%, but compared to the level of the middle of last year, the scale of the transaction is still a certain distance.

In addition, according to the China Real Estate Index System Hundred Cities Price Index, in March 2022, Zhengzhou's new residential prices fell by 0.27% year-on-year, and the price of second-hand residential prices rose by 0.06% year-on-year. "It will take time for the policy to clearly show its effect." Chen Wenjing said.

Chen pointed out that the adjustment of the "five limits" policy, and the introduction of measures to optimize the environment of the property market, will be the main direction of the property market control in the next period of time. But by the property market is affected by multiple factors, in the current situation, the market is afraid that the pace of recovery will not be too fast.

Despite this, in the face of policy adjustments are likely to bring excessive market rebound, there have been voices of caution. April 11, "Economic Daily" article pointed out that the Ministry of Education recently released to do a good job of general primary and secondary school enrollment and enrollment of the work of the notice made it clear that relatively balanced educational resources in the place to encourage the gradual implementation of the single-school district; educational resources are not balanced in the place, actively and steadily promote the multi-district school district. The notice also states that the school enrollment process should be carried out in an orderly manner. Some market participants believe that the price of school district housing will usher in a new round of rise.

The article said that this view deserves vigilance. Curbing the chaos of school district housing is not a stopgap measure, but needs to be done over a long period of time to prevent the wind of speculation on school district housing from returning.

Yan Yuejin believes that this also reflects the property market policy still has a "red line" exists. Signals from key areas such as school district housing and high-priced land could be the alarm that triggers the "red line". In the context of the gradual release of reasonable demand, the market is warming up, in the name of encouraging demand, trying to break the "red line" behavior will still be limited.