Mini Program: Daily Real Estate Industry News Summary.
In Beijing, banks in the region are conducting a survey on early repayment of housing loans, and 9 banks have stated that there are currently no restrictions on repayment funds.
Reporters have learned from multiple banks in the Beijing area that the number of customers who choose to repay their home mortgages in advance has increased. Bank employees have informed reporters that customers who wish to make early repayments on their mortgages need to make an appointment in advance, and the waiting time is usually around 1 month. There are no restrictions on the repayment amount, and customers can choose to make partial repayments or pay in full. However, some banks require a minimum repayment amount of 10,000 yuan. Some banks do not currently provide online appointment services for repayment. Employees from Agricultural Bank of China, China Everbright Bank, Minsheng Bank, and Bank of Beijing all stated that customers need to visit offline branches to apply for early repayment. (Beike Finance)
In Shenzhen, a residential land parcel in Bao'an District was listed for 6.665 billion yuan, and all the residential properties on the land are available for immediate sale.
A219-0080 land listed by Shenzhen Public Resource Trading Center has attracted market attention with a bidding requirement: all houses are currently on sale. The announcement shows that the land is located in Hangcheng Street and Fuyong Street, Baoan District, with a starting price of 6.665 billion yuan. It is scheduled to be sold at 15:00 on October 8, 2024. At the same time, the residential part of the land is ordinary commodity housing, and the winning bidder will be determined according to the principle of "highest bidder wins". Intending bidders need to provide a "Commitment Letter Regarding "Handing Over the House and Issuing the Certificate"", promising to provide "house delivery and certificate issuance" service to ensure that buyers have the conditions to apply for and receive the property ownership certificate at the same time of receiving the house. All ordinary commodity residences within the land plot are required to be sold as completed houses. (Securities Times)
Will the land auctions in Shenzhen include sales of finished properties? An informed source says it's just a plan for a single land parcel transaction.
A residential land parcel in Shenzhen that requires "all finished property sales" has been put on the market, sparking speculation about whether Shenzhen will fully implement the sale of finished properties. Regarding the question of whether Shenzhen will fully implement the sale of finished properties, an anonymous source told reporters that the requirement for "all finished property sales" in the land auction does not mean that all land parcels in Shenzhen will require the sale of finished properties in the future. "This is just a plan for a single land parcel transaction." (Yicai)
Securities Times: Expectations of a reduction in interest rates for existing home mortgages have resurfaced.
At present, all parties in the market have renewed their expectations for a reduction in the interest rate of existing housing loans. "At the current point in time, appropriately lowering the interest rate of existing housing loans may partially unleash the potential for household consumption and also help curb the expansion of early repayment." said Wang Wen, an analyst at Tianfeng Securities. Chen Wenjing, Market Research Director of China Securities Institute, believes that the future scope of interest rate reductions for existing housing loans may expand to second homes. "If the interest rate of existing housing loans is reduced in the future, the overall reduction is expected to be lower than the previous round (i.e., September 2023, which reduced by 73 basis points). Currently, commercial banks face greater pressure on net interest margins and are not highly willing to proactively lower the interest rate of existing housing loans. It may require more supporting policies to guide banks to lower the interest rate of existing housing loans." said Chen Wenjing. Zhejiang Securities' banking research team also believes that there is a possibility of reducing interest rates on existing housing loans, but it is not necessarily allowed to "switch to mortgage", and it is more likely to lower the interest rate addition for existing mortgages.
5. There is a high demand for reducing the burden of interest rates on existing housing loans, and banks face a difficult decision on whether to reduce interest rates.
Recently, there has been a resurgence in the market's call for the reduction of existing home loan interest rates. There are market rumors that the existing home loan interest rates may be lowered, while the possibility of 'switching to a mortgage' has also been raised. In fact, there has been a large-scale reduction in existing home loan interest rates since last year, but compared to the interest rates for new home loans, they are still relatively high. This has also led to the continued enthusiasm of home buyers to repay their home loans early. According to the research data from China International Capital Corporation (CICC), the early repayment rate for mortgage loans in banks is still around 14%, and there may be space for using consumer and operational loans to replace mortgages. This phenomenon is also reflected in the data of personal mortgage housing loan balances of listed banks. Journalists, based on the half-yearly report data of A-share listed banks, found that among 6 state-owned banks and 9 joint-stock banks, only 5 banks saw an increase in the balance of personal mortgage housing loans compared to the end of last year. However, the balance of personal housing mortgage loans of these 15 banks decreased by a total of 309.957 billion yuan in the first half of this year. The high early repayment rate and the significant reduction in the balance of personal housing mortgage loans have once again put the banking industry at a difficult crossroads."贝壳财经
6. Shanghai: The policy of early repayment of housing loans remains stable, and the minimum threshold for most banks is 0.01 million yuan.
Recently, some commercial banks in the Guangzhou area have raised the threshold for early repayment of housing loans to 0.05 million yuan, which has become a hot topic and has attracted widespread attention. So, have there been any changes in the relevant policies of banks in Shanghai recently? Journalists visited and consulted several banks. The implementation of the policy of early repayment of loans varies from city to city. In the case of Shanghai, the minimum repayment amount for early repayment is set at 0.01 million yuan in most banks. (Look News)
7. Nankang District, Ganzhou, Jiangxi: Real estate companies can repurchase supporting talent housing from the government and convert them into commercial housing for sale.
Jiangxi Province, Ganzhou City, Nankang District has issued "17 measures to promote the stable and healthy development of the real estate market", involving phased purchase subsidies, differential purchase subsidies for families with different fertility conditions, deed tax subsidies, housing ticket resettlement, and "replacement of old with new", etc. The document proposes to allow the conversion of supporting talent housing into commercial housing for sale. It allows undeveloped and under-construction talent housing that has not been delivered to be repurchased by developers from the government at a price not lower than the land cost plus the construction cost through negotiations, and converted into commercial housing for sale. The repurchase payment can be made in a lump sum or in installments.
8. Longnan, Jiangxi: The reward for housing ticket resettlement is not less than 400 yuan/square meter, and the maximum subsidy for families with multiple children is 10,000 yuan.
The People's Government of Longnan City, Ganzhou City, Jiangxi Province has issued a notification on "Several Measures to Promote the Stable and Healthy Development of the Real Estate Market", which involves 16 measures such as provident fund loans and housing subsidies. Differentiated housing subsidies are implemented for families with children. For families that meet the birth policy and have a second or third child, a one-time housing subsidy of 5,000 yuan or 10,000 yuan will be provided for the purchase of new commercial housing within the city from the date of announcement until December 31, 2025. If purchasing new commercial housing in the city with a housing ticket, a housing reward of not less than 400 yuan per square meter will be provided by the finance.
Guangdong Meizhou: Compatriots from Taiwan, Hong Kong, Macao, and foreign employees who have obtained permanent residency in China can pay housing provident fund, and enjoy equal treatment.
The Meizhou Housing Provident Fund Management Center in Guangdong Province issued the 'Work Plan for Meizhou Housing Provident Fund to 'Serve Consumption and Expand Domestic Demand''. The document proposes the implementation of the housing provident fund system for compatriots from Taiwan, Hong Kong, Macao, and foreign employees. Compatriots from Taiwan, Hong Kong, Macao, and foreign employees who have obtained permanent residency in China are included in the housing provident fund system guarantee range, enjoying the same housing provident fund benefits, supporting achieving stable housing. Meizhou City will also implement 'one person buying a home with the family's help'. When the applicant and spouse purchase a house, they can withdraw the balance from the housing provident fund account in a lump sum, and the parents or children of the buyer can also withdraw the balance from their account in a lump sum, with the total withdrawal not exceeding the actual housing payment amount. Increase the maximum loan amount. The maximum loan amount for both parties is raised to 0.65 million yuan, and for one party it is raised to 0.45 million yuan. (The Paper)
Mortgage rates in the United States further declined, boosting housing applications.
Mortgage rates in the United States fell to the lowest since April 2023 last week, speeding up the pace of potential homebuyers' loan applications. Data from the Mortgage Bankers Association (MBA) in the United States on Wednesday showed that the contract interest rate for 30-year fixed-rate mortgages fell slightly to 6.43% by the end of the week of August 30. This is the fifth consecutive week of decline, stimulating an accelerated rebound in the MBA's home loan application index, which rose by 3.3% to 136.1. Despite the market's expectation that the Fed will begin cutting interest rates at the next meeting in two weeks, mortgage rates have recently decreased. However, borrowing costs and house prices remain high, making the US housing market in its worst affordability period ever. The MBA mortgage application index, covering both home purchases and refinancing, rose 1.6% to 230.5.
Haikou once again introduces new real estate policies: encouraging 'trade-in' to meet the demand for home improvement
In the afternoon of September 4th, there were rumors on local social media in Hainan that Haikou had introduced new real estate policies, stating once again the optimization of the home purchase policy for local residents and encouragement of 'trade-in'. A reporter from China Real Estate News asked the main person in charge of the Haikou Housing and Urban-Rural Development Bureau about this, and the response was 'there is indeed such a matter'. It is reported that on the afternoon of September 4th, the Haikou Housing and Urban-Rural Development Bureau convened a meeting with representatives of some local real estate companies, during which the relevant officials of the Bureau read out two new real estate policies in Haikou: first, optimize the home purchase policy for local residents. Individuals who have settled in Hainan Province can enjoy the same home purchase treatment as local residents from the date of settlement. Second, encourage 'trade-in' to meet the demand for home improvement. Anyone who lists their residential property for sale (owned by themselves or family members, including spouses and minor children) in the province can purchase a commercial residential property in Haikou. In other words, settling in immediately enjoys the same treatment as local residents for home purchase, and there is no longer scrutiny of the settlement time in implementation, treated equally. (China Real Estate News)
China Vanke Co., Ltd. raised 11.48 billion yuan in bank financing, using its subsidiary's equity and ongoing projects as collateral
Tonight, China Vanke Co., Ltd. announced that the company will receive a loan of 11.48 billion yuan, with guarantees from several subsidiaries. Among them, Tianjin Wanyun, Shenyang Wanxi Zhihui, Shenyang Wanxi, Guangxi Vanke, Xinjiang Xincheng, and their equity and ongoing projects provide a guarantee for a financing amount of 3.5 billion yuan, with a current loan balance of 2.946 billion yuan and a term of 3 years. The equity of Vanke Nanyuan Real Estate held by Vanke Hongshuwan provides a guarantee for a financing amount of 7.98 billion yuan, with a current loan balance of 1.6 billion yuan and a term of 5 years.
13. Economic Daily: What is the impact of canceling the guidance price for new home sales?
Since the beginning of this year, several cities including Zhengzhou in Henan, Shenyang in Liaoning, Lanzhou in Gansu, and Ningde in Fujian have made it clear that they will no longer implement price guidance for the sale of newly built commodity housing. Industry experts generally believe that the cancellation of price guidance for new property sales will lead to short-term price fluctuations, but in the long run, housing prices will better reflect the true supply and demand situation in the market, which is beneficial to the stable and healthy development of the real estate market. In the new situation, real estate market regulation can adopt more indirect and market-oriented methods. With the implementation of various policies, a stable and healthy development of the market can be expected.
