Mini Program: Daily Real Estate Industry News Summary.
1. Some banks in Shanghai have quickly lowered their prices, and the interest rate for first-time home buyers has been reduced to 3.4%.
It is reported that some banks in Shanghai have begun to lower their mortgage interest rates. The interest rate for first-time home buyers has dropped to 3.4%, and the interest rate for second-home buyers is as low as 3.6%. "The latest mortgage interest rates have now been implemented. The interest rate for the first home loan is 3.4%; for second-home loans, the interest rate for city-area properties is 3.8%, and for properties in the free trade zone Lingang new area, Jiading, Qingpu, Songjiang, Fengxian, Baoshan and Jinshan, the mortgage interest rate is 3.6%," a staff member from the personal loan center of an Industrial and Commercial Bank of China branch in Shanghai told reporters on July 23. The adjustment of bank mortgage interest rates is mainly affected by the lower LPR. On July 22, the loan market quoted interest rate (LPR) ushered in another round of decline, the 1-year LPR was 3.35%, and the 5-year LPR was 3.85%, both lower than the previous month by 10 basis points. (The Securities Times)
2. Multiple banks in Beijing quickly lowered their mortgage interest rates, and the interest rate for first-time home buyers in Beijing has dropped to 3.4%.
Several banks in Peking have started to lower their mortgage interest rates, with first-home mortgage rates falling to 3.4% and second-home mortgage rates as low as 3.6%. "Yesterday, LPR (Loan Prime Rate) was lowered, followed by a reduction in mortgage interest rates," said a customer manager at cm bank in Peking. At present, first-home mortgage rates are as low as 3.4%, while the requirements for second-home purchases depend on whether the property is inside or outside the fifth ring road. "After this LPR cut, the first-home mortgage rate has dropped to 3.4%. If the customer is buying a second home, and the property is inside the fifth ring road, the mortgage interest rate will drop to 3.8%. If the property is outside the fifth ring road, the rate will drop to 3.6%." A personal loan center employee at the Industrial and Commercial Bank of China in Peking told the reporter (Securities Times).
3. The lowest mortgage interest rate in Guangzhou has dropped to the two digits.
According to several major banks in Guangzhou, after the People's Bank of China announced the loan market quoted interest rate (LPR) on July 22, commercial banks in Guangzhou began to implement the latest mortgage interest rate standards from July 23. Reporters learned that some high-quality customers in foreign banks such as HSBC are expected to lower their interest rates to the digit "2" if they apply for a certain amount of mortgage loans. (South +)
4. The sales of existing homes in the United States fell in June, and the median home price hit a new historic high.
US existing home sales in June fell more than expected due to a record-high median home price, but the hope of a rebound in housing activity in the coming months was brought about by the improvement in supply and the decline in mortgage rates. The National Association of Realtors reported on Tuesday that the annualized total of existing home sales in June was 3.89 million, down 5.4% and the lowest level since December 2020. Analysts predict that home sales will fall to 4 million. Resales, which account for a large portion of US home sales, fell 5.4% year-on-year in June. The median home price rose 4.1% from the same period last year to a historical high of $426,900, which is the second consecutive month of hitting a historical high. Lawrence Yun, chief economist of the association, said, "We are seeing a slow shift from a seller's market to a buyer's market." "Homes are staying on the market longer and sellers are getting fewer offers."
5. The base deposit amount for housing provident funds in Suzhou has been adjusted, with the lower limit being 10% of the minimum monthly wage standard.
According to the Regulations on the Management of Housing Provident Fund in Suzhou City, the relevant matters concerning the adjustment of the housing provident fund deposit base for the year 2024 in Suzhou City are hereby notified as follows: The highest deposit base in all regions shall not exceed three times the average monthly income of employees (total wages) in Suzhou City in 2023, i.e. 34,700 yuan. The monthly deposit amount of flexible employees who voluntarily participate in the housing provident fund system shall be determined by themselves (can be adjusted at any time), with a lower limit of 10% of the minimum monthly wage standard (249 yuan), and the maximum monthly deposit shall not exceed 6,940 yuan/month. The adjusted deposit base shall be implemented from July 2024. For the housing provident fund that is underpaid during the period from July 2024 to the month of adjustment, the unit shall make up for the payment after the adjustment. (Suzhou Release)
6. Henan: Promote relevant cities to formulate supporting policies such as allocation-type affordable housing management methods and repurchase plans based on local conditions.
The General Office of the People's Government of Henan Province has issued several measures to solidly promote economic stability and progress in the second half of 2024, and to promote the stable and healthy development of the real estate market. We will spare no effort to win the tough battle of "insured house payment", basically complete the delivery of two batches of special loan projects; speed up the rectification of expropriation and resettlement projects, and strive to complete the delivery by the end of September 2024. Actively promote the "three major projects" in the real estate field (planning and construction of affordable housing, urban village renovation, and "dual-use" public infrastructure construction), promote relevant cities to formulate supporting policies such as allocation-type affordable housing management methods and repurchase plans based on local conditions, accelerate the establishment of the "1+N+X" policy system for the renovation of urban villages in Zhengzhou, Luoyang, and formulate supporting policies or technical guidelines for the construction of "dual-use" public infrastructure in Zhengzhou and other places, and promote the construction of "dual-use" public infrastructure in Zhengzhou and other places. Establish a sound system of "white list" for compliant real estate projects to ensure that "those who should enter will enter, and those who should loan will lend." We will prudently dispose of idle stock real estate land. (People's Government of Henan Province)
7. Hong Kong property buyers tour Guangzhou? Nearly 20% of buyers for some developments are from Hong Kong and Macau.
Since Guangzhou relaxed its restrictions on home purchases by Hong Kong, Macao, Taiwan, and foreign nationals on July 5, many properties under China New World and other developers, as well as commercial real estate projects under Yuexiu Property, New World and other developers, have welcomed Hong Kong property buyers. A person in charge of Sino Estates project, said that to take advantage of the new policy, the project has launched a "Hong Kong people's property ownership special session", with a maximum discount of 9.1%. In the first week of the new policy, more than 50 groups of Hong Kong customers came to visit, and two large buses were organized. China Index Research Institute said that with the recent opening of the Shenzhen-Zhongshan Channel, the completion of the Guangzhou-Zhuhai, Guangzhou-Huizhou intercity railways and other transportation infrastructure projects have driven the Guangzhou-Hong Kong-Macao Greater Bay Area to become more integrated, boosting the demand for Hong Kong and Macao residents to buy properties in mainland China. (China Real Estate News)
8. Hong Kong's Peak Mansion sold for HKD 0.717 billion, making it one of the largest transactions of the year.
A luxury residence on The Peak in Hong Kong sold for HKD 0.717 billion (USD 92 million), making it one of the largest transactions of the year. Transaction records show that Room 3 of 15 Shouson Hill Road was sold on Monday, and the buyer signed a 35-day cash payment plan. The transaction volume of Hong Kong's luxury real estate market has rebounded slightly, as buyers have focused on prices, which have fallen by up to 10% since 2021.
9. All residential plots in Hangzhou's seventh batch of land sales were sold at a premium, with a premium rate of 59.2% for the Linping district plot.
Hangzhou urban area completed the seventh batch of residential land auction in 2024. Both parcels of land were sold at a premium, with a total area of 69.18 acres and a transaction amount of 2.942 billion yuan, at an average premium rate of 28.6%. Two parcels of land were auctioned, located in Shangcheng District and Linping District respectively, with a total starting price of approximately 2.287 billion yuan. According to the land auction information, the auctioned land was freely bid on, and the bidder with the highest price won. According to the transaction result, the land was won by Hangzhou Binjiang Real Estate Group Co., Ltd., a subsidiary of Binjiang Group, for a total price of 2.337 billion yuan after 43 rounds of bidding, with a transaction floor price of 35,524 yuan per square meter and a premium rate of 22.6%. (Pengpai)
10. In the first half of the year, the sales area of commodity houses in Guangdong decreased by 30.6%.
Guangdong Provincial Bureau of Statistics released an overview of the economic operation in the first half of this year. In terms of investment, real estate development investment decreased by 16.8% year-on-year, and the sales area of commodity housing decreased by 30.6%. In the first half of the year, fixed-asset investment in Guangdong decreased by 1.5% year-on-year, a decrease of 0.9 percentage points compared to January-May.
11. Hunan Yongzhou: Up to an 80% subsidy on the deed tax for home purchases, encouraging real estate companies to make profits through group purchases and sales.
The Yongzhou City, Hunan Province issued the "Seven Measures for Further Promoting the Stable and Healthy Development of the Real Estate Market in the Central Urban Area of Yongzhou City". The measures shall be implemented from the date of issuance of this document, and the execution period shall be from July 22, 2024 to July 21, 2025. The document proposes that Yongzhou will implement the purchase tax subsidy. During the validity period of this measure, if you purchase new commodity housing (including residential and non-residential buildings) in the central urban areas and sign a commodity housing sales contract online and fully pay the transaction deed tax, the fiscal department will subsidize the buyer by 25% of the deed tax paid. For families with a second child or more who meet the birth policy and purchase newly-built commodity housing in the central urban area, sign a sales contract for newly-built commodity housing online, and fully pay the deed tax, the fiscal department will subsidize the buyer by 50% of the deed tax paid for families with a second child, and 80% of the deed tax paid for families with three or more children. (Yongzhou Real Estate Development Association)
12. Midland Holding, Hong Kong: New properties continue to be sold at low prices to attract customers, Hong Kong's second-hand housing trading has reached a deadlock.
Ma Tai Yang, Executive Director (Residence) and Executive Director of Hong Kong Property of Midland Holdings, said that recent new properties continued to offer low stock prices to attract customers, and purchasing power was redistributed. The Hong Kong second-hand housing market is stuck, and short-term housing prices are unlikely to rise significantly. Data from the research department of Midland Holdings and the Hong Kong Land Registry show that in the first half of this year, the average registered amount per transaction of second-hand residential properties in Hong Kong (including private housing and public housing) was only about HKD 6.6 million, which has reached a new low of seven and a half years since the second half of 2016.