Finance Association, June 11 (Reporter Wang Haichun) One month has passed since Hangzhou lifted purchase restrictions on May 9. How effective is the policy?

A number of intermediary companies and research institutes told the reporter that in the month since the implementation of the new property market policy in Hangzhou, the local second-hand housing and new housing markets have all seen varying increases in popularity and transactions, and the effects of the policy have been demonstrated.

According to monitoring data from the Hangzhou Shell Research Institute, compared with the month before the implementation of the new property market policy in Hangzhou (April 8 to May 8), the number of second-hand housing inquiries in Hangzhou increased by 21% in the month after the New Deal (May 9 to June 8), the number of second-hand housing inquiries in Hangzhou increased by 15%, and the volume of second-hand sales increased 33%.

Analysts at the Shell Research Institute told the reporter that after Hangzhou introduced a new property market policy, the effects of several districts such as West Lake, Gongshu, Yuhang, and Binjiang became even more obvious.

“Compared with the data for the month before and after the implementation of the new policy, there was a sharp increase in the quantity of second-hand housing in several districts such as West Lake and Gongshu. Among them, Xihu District rose 47%, Shangcheng District grew 39%, and Binjiang District and Gongshu District both grew 38%.” The analyst mentioned above said.

Also, according to Anjukou data, out of the 65 cities it focuses on monitoring, the popularity of finding new homes online rose in May in 50 cities, while Hangzhou was affected by the city's favorable policy of fully liberalizing purchase restrictions and the 517 New Deal, which saw the biggest increase in popularity. Judging from the data on the popularity of housing searches in Japan, the day Hangzhou introduced a comprehensive liberalization of the purchase restriction policy on May 9, the popularity of online housing searches in Hangzhou soared, up 150% from the previous day.

Gao Yuansheng, executive deputy general manager of the East China Region, told the reporter that under the combined effects of the new policy stimulus and the market's continued “price for volume”, the number of second-hand housing units sold in Hangzhou (19-22 weeks) increased by 8.7% and 37.2%, respectively, compared with the average weekly average in April and the average weekly transaction level for the same period last year.

“The second-hand housing market in Hangzhou performed well in May. Despite a decline in trading volume during the May 1st holiday, with the support of the “Hangzhou Seven Rules” New Deal, according to preliminary statistics, the market still reached a high transaction level of 8,000 units. However, the price factor also plays a role in this. After the New Deal, the second-hand housing market in Hangzhou reacted rapidly. The number of listings increased significantly. Buyers actively viewed houses, and landlords also adjusted prices and rushed shipments. Thanks to the combined effects of both parties, transactions were maintained at a high level.” A high school student said.

In addition to second-hand housing, the driving effect of “Hangzhou Qijiao” on transactions in the local new housing market is also quite obvious.

According to monitoring information from the Shell Research Institute, compared with data for the month before and after Hangzhou introduced the new property market policy, the number of inquiries about new homes in Hangzhou increased by 33%, the number of new home visits increased by 12%, and the number of new home subscriptions increased by 7%.

“The loosening of purchase restrictions in Hangzhou has released a wave of backlog demand, which has played an important role in driving transactions.” Kerry analysts said.

Gao Yuansheng told the reporter that the transaction area of new homes in Hangzhou in May was 659,000 square meters, a month-on-month increase of 49%, and the popularity of market transactions increased significantly. “Under the influence of factors such as the 'Seven Rules of Hangzhou' new policy and the entry of hot new properties into the market, some demand for immediate and improved housing purchases in Hangzhou was quickly released, and activity in the new housing market was effectively boosted.”

“Compared to second-hand housing, the rise in popularity of the new housing market in Hangzhou is even more prominent, and the effects of policy incentives are remarkable. After the introduction of the 517 New Deal, the popularity of housing searches in Hangzhou also rose slightly, but there is still a certain gap compared to the stimulus effects of the previous liberalization of the purchase restriction policy. This shows from one side that the effects of Hangzhou's May 9 policy may be more obvious.” Zhang Bo, director of the 58 Anjuke Research Institute, said.

It further stated that after the purchase restrictions were completely lifted in Hangzhou, there was a sharp recovery in the number and area of new housing transactions. Due to factors such as transaction structure, transaction prices rose slightly, but overall prices remained relatively stable; in May, the transaction area of new housing increased by about 50% month-on-month, but the volume still declined year on year, and has not yet returned to the same period last year.

Earlier, on May 9, Hangzhou issued a notice to completely lift housing purchase restrictions, buy homes within Hangzhou, and no longer review eligibility for home purchases. The notice also made it clear that buyers who do not have a home within the urban area of the house they purchased, or who only have a home unit within the urban area of the purchased house and are being listed for sale, can be determined as the first housing unit when applying for a mortgage loan for a newly purchased home.

Industry insiders believe that the new property market policy implemented in Hangzhou has played a significant role in stimulating demand.

“Hangzhou's adjustment of the first home certification criteria has brought Hangzhou's credit policy into the most relaxed stage in history, and is even more relaxed than during the period of no purchase restrictions in 2014-2016.” Zhang Dawei, chief analyst at Central Plains Real Estate, said.

Senior college students pointed out that, on the one hand, you can apply for settlement when buying a house, which has absorbed more new demand from within the province or abroad; on the other hand, local improvement demand in Hangzhou has been released at an accelerated pace. However, if there is no house or a listing in the home purchase area, it can be determined according to the first housing unit, which will undoubtedly reduce the cost of improving the customer's home purchase, promote its release, and greatly smooth the chain of selling the old and buying the new one. However, while the complete lifting of purchase restrictions is beneficial to the market, it may further increase market differentiation, making it more difficult for core or high-quality sectors to win.

“Overall, the full liberalization of purchase restrictions in Hangzhou has had a very direct impact on the market. There have been immediate changes in both the popularity of housing searches and new housing transactions. The performance in the new housing market is also quite obvious, but the sustainability of the policy's effectiveness remains to be seen.” Zhang Bo added.