On the evening of May 31, Shanghai introduced another major real estate support policy. Provident funds deposited in Shanghai can buy houses in the three provinces of Jiangsu, Zhejiang, and Anhui. In fact, since the central bank launched a real estate support policy with multiple arrows on May 17, local rules have been implemented rapidly, and real estate support policies have continued to be updated.
You can buy a house in Jiangsu, Zhejiang, and Anhui with the Shanghai Provident Fund
On May 31, according to the “Shanghai Provident Fund Release”, starting from June 1, 2024, employees who meet the following conditions can apply to withdraw the city's housing provident fund account balance to repay housing provident fund loans to buy homes in Jiangsu, Zhejiang, or Anhui provinces.
According to the “Notice”, starting from June 1, 2024, if an employee buys a house using a housing provident fund loan in Jiangsu Province, Zhejiang Province or Anhui Province and meets the requirements (that is, the purchased house is at the place of domicile of the person, spouse, parents, or children, or where they or their spouse have no own housing in the city), and there is no housing provident fund loan in the city, and the principal lender and spouse can withdraw the loan from the city's housing provident fund account balance to repay the housing loan.
Yan Yuejin, research director of the Yiju Research Institute, said that the current policy is clear. As long as there is no provident fund loan or withdrawal business in Shanghai, then subsequent buyers can withdraw from the Shanghai Provident Fund loan to pay for the purchase of a house in the three regions of Jiangsu, Anhui, and Zhejiang.
“This policy is an important reflection of the Provident Fund's support for reasonable housing consumption. It also reflects the strong support of the Shanghai Provident Fund Department. Although it itself does not directly bring about transactions in the Shanghai home buying market, it has a positive effect on boosting demand and reducing costs under the Yangtze River Delta integration.” Yan Yuejin said that in optimizing and adjusting provident fund policies this year, all regions can learn from the Shanghai model and actively optimize policies for offsite use of provident funds in the development of urban agglomerations and metropolitan areas.
The transaction price for the acquisition of commercial housing in Guangzhou is “land cost+construction and security cost”
Recently, news that the Guangzhou Zengcheng District Government plans to purchase a batch of commercial housing has attracted attention from various sectors. According to the official website of the Zengcheng District Government, in order to implement the demolition and resettlement of expropriated persons eligible for the Guangzhou (Xintang) to Shanwei Railway Project (Xintang section), the project plans to use the purchase of market-based commercial housing as housing resettlement housing for the project, solicit eligible residential properties (housing enterprises) from the community, and then select housing communities (housing enterprises) in accordance with the relevant procedures.
First, according to the nearby placement principle and agreement, the property must be within Xintang Town, Zengcheng District; secondly, the property has obtained a pre-sale license to meet the contract conditions and project placement requirements (that is, the total floor area must be at least 20,700 square meters, and the apartment area section must be able to combine at least 72 280㎡
According to the table information provided, the apartment area segments include 70 square meters, 90 square meters, 120 square meters, and 140 square meters. There are 3 combinations of 280㎡, namely combination 1:280㎡ = 70+90+120, 50; combination 2:280㎡ = 140+140, 22; combination 3:270㎡ = 3×90, 2.
Regarding the current purchase price, the notice clarifies that the unit price of the housing transaction is determined by means of evaluation. The evaluation method selected for this evaluation is the cost method, which in principle is “land cost+construction and security cost”.
It is worth noting that there are no targeted state-owned enterprises/CITI platforms for this public takeover. Eligible housing enterprises can sign up and submit information such as regulatory account information, corporate capital certificates, “building insurance” special measures, and pre-sale certificates of real estate.
According to some media, this is the first case where Guangzhou officially purchased commercial housing to be used for housing resettlement after the New Deal.
“This is not a new model. Originally, there were three options for evictions and resettlement: monetary compensation, relocation, and offsite resettlement; now there are still more room ticket resettlement. “Because this is due to the demolition and resettlement of railway projects, there is no way to relocate; then it is generally relocated (nearby),” said Xiao Wenxiao, chief market analyst in the Guangzhou-Foshan region of Kerry.
He believes, “In the past, the property market was good, the price of market-based projects was high, and the government had no way to store them. Generally, they would consider finding new construction businesses in other places to settle. Now in this market environment, it is possible to buy existing properties.” However, Xiao Wenxiao also speculated that judging from the terms of the purchased property, it must have already been an intended target.
Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, also pointed out, “Normalized demolition, if it is in the public interest, can take the form of housing ticket placement or market-based housing purchases.” He stressed, “This project is the demolition and resettlement of public facilities. It takes the form of purchasing existing housing. There have been cases before.”
Hefei stops supplying land for housing
On May 29, the Hefei Municipal Government released news that the Hefei Municipal Housing Security and Real Estate Administration, the Finance Bureau, the Natural Resources and Planning Bureau, and the Urban and Rural Development Bureau have jointly formulated an implementation plan for housing ticket placement.
According to the plan, Hefei City will no longer provide land for housing resettlement, housing expropriation projects on state-owned land, and compensatory resettlement involving housing expropriation on collective land. The expropriators will provide housing tickets to the expropriated persons to compensate for the expropriated properties. These room tickets can be used to buy a home in the city's unified housing supermarkets. In addition, room tickets issued in downtown Hefei can be used in housing supermarkets throughout the city, and each county and the Anchao Economic Development Zone will determine the area where the room tickets will be used.
At the same time, room tickets will be subject to a real-name system, and the ticket holder will be the expropriated person. If the expropriated person is a natural person, their close family can also be the user of the room ticket. The policy also supports the mutual transfer of housing bills between expropriated persons within the same expropriation project, but each room ticket can only be transferred once. The purchase amount of a room ticket must not be less than 80% of the face value of the room ticket.
According to data from Kerui Anhui, commercial residential inventory in Hefei's nine districts has remained below 10 months for the past 3 years, and the overall stock and removal cycle are relatively manageable. However, it is worth noting that before 2022, inventory accounted for 25%, and commercial residential inventory after 2023 reached 75%, indicating that development projects had a high inventory volume in the past two years, and 53% of inventory was concentrated in 90 to 120 square meters of products that just needed to be modified.
Since Hefei introduced new real estate policies in a row, buyers' confidence has been boosted. According to information provided to the media by the Hefei Real Estate Bureau, Hefei has taken advantage of the strong driving effect of housing fairs. Over a period of 3 days (May 23 to May 25), the amount of residential transactions in Hefei has already exceeded 1.1 billion yuan.
Zhejiang Quzhou encourages state-owned enterprises to buy second-hand housing
The Zhejiang Quzhou Urban and Rural Housing Coordination Committee issued the “Notice on Certain Measures to Further Optimize the Stable and Healthy Development of the Real Estate Market” on May 31. It is proposed in the notice that Quzhou will pilot a “trade-in” policy housing market acquisition policy, as well as a “trade-in” policy for the acquisition of ultra-low-cost housing by state-owned enterprises.
Quzhou encourages state-owned enterprises to adopt a project system to purchase eligible second-hand properties in a limited quantity, scope, and time. Residents can buy newly built commercial housing in the form of housing vouchers.
In addition, Quzhou will develop an ultra-low price housing acquisition plan on an annual basis, and state-owned enterprises will raise funds to carry out acquisitions in the form of housing vouchers. The acquisition process will adopt a queuing system and be carried out in the order of registration. Residents who exceed the limited number of units will have to wait for the next round of acquisitions.
Linping District, Hangzhou: Family members' Provident Fund can be withdrawn to pay down payment
According to the WeChat account “Linping Release” on May 31, Linping District, Hangzhou City, Zhejiang Province issued the “Notice on Measures to Promote the Healthy and Stable Development of the Real Estate Market”. This notice will be implemented on June 1, 2024.
The document proposes to optimize the service policy of the Provident Fund. As of the effective date of this notice, in addition to the buyer's housing provident fund that can pay the down payment for the purchase of a home, families who pay the housing provident fund in the city may apply for withdrawing the housing provident fund as a unit (including immediate family members) to pay the down payment for the purchase of a home.
The Linping District Housing and Construction Bureau explained that family members applying to withdraw the housing provident fund on a household basis to pay the down payment for a home purchase are limited to the buyer's spouse, children, and parents.
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