Mini Program: Daily Real Estate Industry News Summary.

1. Existing housing loans have been reduced, and some cities have entered into an era of 2-digit interest rates.

The market generally believes that the LPR quotation adjustment of the two-term varieties this time is conducive to reducing the interest burden of mortgage borrowers and promoting consumption. In some areas, mortgage interest rates will enter the era of 2-digit rates. Wen Bin, chief economist of China Minsheng Bank, believes that the downward adjustment of LPR, which will drive the repricing of next year's mortgage rates and other prices, can alleviate the willingness of residents to pay back early to a certain extent and stabilize the credit of residents. In fact, since the new policy of real estate was introduced, real estate loan rates have continued to hit bottom. The cancellation of the policy lower limit of real estate loan rates means that real estate loan rates of different banks in some regions are different. For example, in Nanjing, after this interest rate cut, the interest rate for the first set of houses in Nanjing will drop to 2.95% (LPR minus 90 basis points), reaching a historical low. (21st Century Business Herald)

2. It is predicted that the interest rate reduction of existing housing loans in the second half of the year will be put on the agenda.

In addition to bringing benefits to new homebuyers, this adjustment of LPR will also bring benefits to families who are still repaying their loans. Calculated in the same way as a loan principal of 1 million yuan, equal principal and interest repayment for 30 years, after the interest rate is reduced by 10 basis points, the monthly repayment will be reduced by about 58 yuan, and the total interest saved will be about 20,656 yuan. However, according to current regulations, the effect of interest rate cuts needs to wait until the date of the contract's repricing, usually the loan issuance date of homebuyers or January 1 of each year. "The expectation of continuing interest rate cuts exists in the market, so in addition to the rigid demand, other homebuying needs may choose to wait, especially in the case where house prices are still falling and there is an expectation of a further decline," said Li Yujia. She believes that the decline in risk-free interest rates for long-term bonds, which is lower than the mortgage rate, has also dampened residents' enthusiasm for borrowing, so interest rate cuts are only good for homebuyers who have just started looking for a house. "Of course, at present, the work of reducing the interest rates of existing housing loans, which is highly demanded in various regions, is actually more referring to the reduction of basis points. If the difference between the current new housing loan rates and the early-stage existing housing loan rates continues to increase, or will put the work of reducing the interest rate of existing housing loans in the second half of the year on the agenda." (NBD)

3. Several banks in Guangzhou quickly implemented the latest LPR quotations, and the interest rate for the first set of houses was as low as 3.1%.

On the afternoon of July 22, the reporter learned that after the adjustment of several banks in Guangzhou, the interest rate for the first set of housing loans was as low as 3.1%, and the interest rate for the second set of housing loans was 3.7%. According to calculations by reporters, if calculated under the condition of "1 million yuan loan principal, 30-year equal principal and interest repayment", after the LPR quotation is lowered, the total interest of homebuyers' mortgage loans will be reduced by nearly 0.02 million yuan, and the monthly payment will be reduced by about 55 yuan. (21st Century Business Herald)

4. The market for old and broken small houses in Beijing is recovering.

After the implementation of the "June 26" new policy, low total price housing in Beijing began to become active. The reporter recently found that with the implementation of the "June 26" new policy in Beijing, the policy effect has been shown: on the one hand, although the transaction volume of second-hand houses with a total price range of more than 8 million yuan, that is, improvement-oriented housing, has not shown a significant change, the transaction volume of second-hand houses with a total price of less than 5 million yuan, especially those priced between 2 million and 3 million yuan, which are commonly known as "old and broken small houses", has significantly increased. "The most obvious change is that the price space of several recently traded 'old and broken small houses' has gradually narrowed." Not only one real estate agent has given such a trend to the reporter. With the gradual stabilization of the market, the confidence of homebuyers is gradually increasing, and hard-core customers begin to dare to make a move. The low total price, good supporting facilities, and good location of old and broken small houses just provide them with opportunities to get on the property ladder. (Beijing Business Daily)

5. Vanke in Chongqing plans to sell 96 inventory commercial properties of Vanke Merchants Ideal City as a whole.

Recently, Chongqing Wanzhao Real Estate Co., Ltd. intends to carry out the overall sales of the inventory commercial properties of the fifth land parcel of Vanke Merchants Ideal City Project. According to project information, Vanke Merchants Ideal City project is located next to the outlet mall of Xiyong logistics park in Shapingba District, Chongqing City. There are a total of 96 sets of inventory commercial properties with an area of about 11,160.44 square meters and four floors (-1-3 floors), and quasi-ready shops are for sale. The 96 sets of inventory commercial properties mentioned above are not clearly priced. The purchase conditions show that customers who have the willingness to purchase and meet the buying qualification requirements can send the purchase quotation and personal (enterprise) information to the relevant Vanke email address before 12:00 on July 22, and bid according to the highest price. The project transaction documents will ultimately be signed by the project company. (Chongqing Vanke)

6. The Ministry of Housing and Urban-Rural Development: Systematically plan and deeply promote reforms in various fields of housing and urban-rural construction.

Ning Hong, Secretary of the Party Group and Minister of the Ministry of Housing and Urban-Rural Development, presided over a party group meeting to convey and study the spirit of the Third Plenary Session of the 20th Party Congress, and to study and deploy the implementation of the work. The meeting emphasized that we should accurately grasp the stage characteristics of the development of housing and urban-rural construction, focus on the outstanding contradictions and problems that restrict the high-quality development of housing and urban-rural construction, insist on making major institutional and mechanism problems the top priority, take the firm foundation, deepen reforms as the mainline, improve mechanisms, systems, and the rule of law as the focus, take the good house, good community, good living as the basis, systematically plan and deeply promote reforms in various fields of housing and urban-rural construction, accelerate the construction of a new mode of real estate development, deeply implement the urban renewal action, promote the transformation of construction industry from industrialization, digitization, and greening, systematically promote the construction of good house, good community, good living, comprehensively improve the integration level of urban and rural planning, construction, and governance, build livable, resilient, and smart cities, and promote the common prosperity and development of urban and rural areas, and continuously meet the people's longing for a better life with practical actions. (China Construction News)

7. Zhengzhou launches nearly 0.05 million sets of "group buying housing", and the first 5000 homebuyers will be given a subsidy of 5000 yuan in consumption vouchers each.

"Take out the lowest selling price and the most practical preferential measures to benefit the people." From July 21st, Zhengzhou, the capital city of Henan province, launched a group-buying event for nearly 0.05 million sets of commodity houses for more than three months throughout the city. Over the weekend, Zhengzhou, which had shown significant signs of real estate market recovery in the first half of this year, once again launched the above-mentioned commodity housing group-buying event in order to further activate the market and boost confidence. The city's housing management institution has made it clear that during the group-buying event, the first 5,000 home buyers will be given a subsidy of 5,000 yuan in consumption vouchers per person. Up to now, 49,528 sets of high-quality housing resources in Zhengzhou have signed up for this group-buying event, preliminarily matching with 3,069 group-buying units, and more than 5,000 potential homebuyers have been registered. (China News Network)"

8. Fujian - Real estate development investment decreased by 15.8% YoY from January to June, and new home sales area decreased by 22.7%.

On July 22, the Fujian Provincial Bureau of Statistics released the "2024 January-June Fujian Province Real Estate Development and Sales Report". From January to June, the province's real estate development investment decreased by 15.8% YoY, of which residential investment decreased by 17.4%. From January to June, the construction area of real estate development enterprises decreased by 17.9% YoY, of which residential construction area decreased by 19.3%. The newly started construction area of real estate decreased by 30.0%, of which the newly started residential construction area decreased by 29.6%. Completed construction area of real estate decreased by 8.1%, of which completed residential construction area decreased by 12.0%. As for the sales and unsold status of new commodity houses, from January to June, the sales area of new commodity houses decreased by 22.7% YoY, of which the residential sales area decreased by 22.4%. The sales of new commodity houses decreased by 33.3%, of which the sales of residential decreased by 31.9%. At the end of June, the unsold area of commodity houses increased by 2.6% YoY, of which the unsold area of residential increased by 12.2%. In addition, the actual funds of real estate development enterprises showed that from January to June, the actual funds of real estate development enterprises decreased by 17.2% YoY, of which domestic loans decreased by 8.7%; self-financing funds decreased by 5.9%; down payments and prepayments decreased by 40.6%; and personal mortgage loans decreased by 42.3%.

9. Kunming Guandu Rural Commercial Bank was fined 2.4 million yuan for violating the regulations by granting the community loans to real estate developers.

On July 22, the Yunnan Regulatory Bureau of the China Banking and Insurance Regulatory Commission published administrative penalties, showing that Kunming Guandu Rural Commercial Bank was fined 2.4 million yuan. The main illegal and irregular facts include: being responsible for the "irregular granting of community loans to real estate enterprises," "major related party transactions without the approval of the board of directors," "irregular investment in trust plans and undertaking implicit repurchase obligations, non-net disposal of non-performing assets," and "non-compliance with government procurement service project loans."

10. The Ministry of Finance: Real estate tax revenue was 233.7 billion yuan in the first half of the year, an increase of 20.1% YoY.

On July 22, the Ministry of Finance announced the financial revenue and expenditure in the first half of 2024. Among them, the revenue related to land and real estate tax showed that deed tax was 277.9 billion yuan, a decrease of 10.9% YoY; real estate tax was 233.7 billion yuan, an increase of 20.1% YoY; urban land use tax was 1298.11 billion yuan, an increase of 11%; land value-added tax was 307.4 billion yuan, a decrease of 4.3% YoY; and farmland occupation tax was 84 billion yuan, an increase of 22.6% YoY.

11. The Ministry of Finance: The government-owned land use right transfer income in the first half of the year was 1.53 trillion yuan, a YoY decrease of 18.3%.

On July 22, the Ministry of Finance announced the financial revenue and expenditure in the first half of 2024, demonstrating that in the first half of the year, the budget revenue of national government funds was 1,991.5 billion yuan, a YoY decrease of 15.3%. In terms of central and local governments, the budget revenue of central government funds was 207.3 billion yuan, a YoY increase of 8.4%, while the budget revenue of local government funds at the same level was 1,784.2 billion yuan, a YoY decrease of 17.4%, of which the government-owned land use right transfer income was 1,526.3 billion yuan, a YoY decrease of 18.3%. In addition, in the first half of the year, the budgetary expenditure of national government funds was 3,559.9 billion yuan, a YoY decrease of 17.6%. In terms of central and local governments, the budgetary expenditure of central government funds was 87.2 billion yuan, a YoY increase of 16.5%, while the budgetary expenditure of local government funds at the same level was 3,472.7 billion yuan, a YoY decrease of 18.2%, of which the relevant expenditure of government-owned land use right transfer income was 2,200 billion yuan, a YoY decrease of 9.2%.