Source: Securities Times
Purchase restrictions have been fully liberalized in Chengdu.
According to news released by Chengdu on WeChat on April 28, the Chengdu Municipal Real Estate Market Leading Group Office issued the “Notice on Policies and Measures to Further Optimize the Stable and Healthy Development of the Real Estate Market” (hereinafter referred to as the “Notice”), which clearly states that housing transactions throughout the city will no longer review eligibility for home purchases. The relevant measures will be implemented on April 29.
In September of last year, Chengdu adjusted housing purchase restrictions. The district directly managed by the Tianfu New Area in Sichuan, the southern park of the Chengdu High-tech Zone, Jinjiang District, Qingyang District, Jinniu District, Wuhou District, and Chenghua District continued to implement housing purchase restrictions and unified them into one restricted area. Other regions are no longer reviewing eligibility to buy a home. Within the restricted purchase area, when purchasing housing of 144 square meters or more (excluding 144 square meters), the eligibility to buy a home will no longer be reviewed to better meet residents' needs for improved housing. This adjustment has fully liberalized the purchase restriction policy. The “Notice” makes it clear that housing transactions throughout Chengdu will no longer review housing purchase conditions such as household registration and social security, and will no longer limit the number of units purchased.
The “Notice” mentioned above also shows that commercial housing projects in Chengdu will no longer carry out notarized house selection and will be sold independently by enterprises. For hot projects that have received high social attention, enterprises are encouraged to adopt notarized housing selection and sales; promote the deepening and implementation of urban real estate financing coordination mechanisms to meet the reasonable financing needs of real estate enterprises with different ownership systems; support simultaneous sales of parking spaces with residences and rationally set up planning ratios for newly sold residential land; promote the use of first-floor overhead floors for public service space settings, increase the proportion of semi-open spaces such as residential balconies, and promote the development of low-density, high-quality residential products in suburban (cities) and counties to further increase the supply of high-quality housing.
In addition, implement a three-color management of “red, orange, and green” land supply for commercial construction, and appropriately reduce the supply of land for residential and commercial services in areas where the supply and sale ratio of residential and commercial service land is high.
On the same day, the Chengdu Housing Provident Fund Management Center issued the “Notice on Raising the Maximum Loan Amount of the First Home Housing Provident Fund for Families with Many Children”, which clearly states that families with many children who meet the housing provident fund loan conditions and buy their first home in Chengdu, the maximum loan amount for double depositor households will be adjusted from 800,000 yuan to 900,000 yuan, and the maximum loan amount for single depositor households will be adjusted from 400,000 yuan to 500,000 yuan, which will be implemented from now on.
According to data from the China Real Estate Index system, second-hand housing prices in the top ten cities all fell year-on-year in March of this year. On a month-on-month basis, Nanjing, Wuhan, Beijing, and Hangzhou fell between 0.7% and 0.8%, while Chongqing (main urban area), Shanghai, and Chengdu fell between 0.5% and 0.6%. On a year-on-year basis, Chengdu, Beijing, Tianjin, Shanghai, and Shenzhen fell between 3.0% and 5.0%.
Recently, more and more cities have relaxed their property market purchase restrictions. Just in April of this year, the “Notice on Supporting Residents to Purchase and Improve Housing” issued by the Housing and Construction Bureau of Changsha City shows that when buying a house throughout the city, the buyer's eligibility conditions will no longer be examined; if you buy a new home by “trade-in”, you can enjoy the down payment ratio for the first home and preferential mortgage interest rates in accordance with the “buy a house without loan” policy; and apply for a housing provident fund loan to buy a new home, and the maximum loan amount will be raised from the original one.
The China Index Research Institute predicts that from a policy perspective, the central government and regulatory authorities have made it clear that they want to further optimize real estate policies. It is expected that both supply and demand policies in various regions have strong optimization expectations. It is expected that first-tier cities may continue to optimize purchase restriction policies, second-tier cities are expected to completely abolish restrictive policies, and that there is still room for policies such as reducing down payment ratios, lowering mortgage interest rates, and lowering transaction taxes and fees.
At the same time, the second-hand housing market is expected to maintain short-term market activity, driven by price for volume, but the momentum for the new housing market may be limited, and the adjustment trend in the new housing market is expected to continue. As the high base effect gradually weakens in the middle of the year, the year-on-year decline in the scale of new home sales in the second quarter is expected to gradually narrow. Recently, many cities have proposed a “trade-in” policy direction. Overall, it is still in the exploration stage. If subsequent supporting policies continue to be improved, it is expected to play a greater role in linking the second-hand housing market.
editor/tolk