Mini Program: Daily Real Estate Industry News Summary.
1. Peking: Cancel the standards for general residences and non-general residences in a timely manner.
Peking Municipal Committee has issued the implementation opinions on carrying out the "Decision of the CPC Central Committee on Further Comprehensive Deepening of Reform and Advancing the Chinese-style Modernization", which mentions improving the housing system with both renting and purchasing. Accelerate the establishment of a new model for real estate development that is in line with the characteristics of the capital, increase the construction and supply of affordable housing, and meet the rigid housing needs of working-class groups. Improve the policy mechanisms to support the diverse improvement of housing needs for urban and rural residents, and leverage the role of housing provident fund in housing security. Optimize real estate policies, timely abolish the standards for ordinary and non-ordinary residences, optimize the rules for commodity residential land transactions, reform the financing methods for real estate development, and the pre-sale system of commodity houses. (Beijing Daily)
2. The Supreme Court issued a document: special funds for financing “white-list projects” in real estate, which cannot be seized or frozen.
The Supreme People's Court is keeping pace with the "保交房" policy. At the end of July, it quietly issued the "Notice on Issues Related to Taking Preservation Measures for Real Estate White-List Projects" (referred to as Document No. 154)". In terms of enforcement, Document No. 154 provides the following judicial support for financing support funds: First, ensure that the funds are used for designated purposes; Second, prioritize the protection of financing support funds. Document No. 154 stipulates that the people's court shall not freeze or deduct accounts and funds for new loans provided by financial institutions to support the construction of white-list projects, or merger loans, unless it is due to the continuation of this project. In addition, when freezing, deducting bank account funds, or sealing up real estate construction projects, if the parties concerned or the assisting enforcers object to the execution on the grounds that the account funds belong to the financing support funds of the white-list project, or that the construction project is part of the new construction funded by financing support funds, the opinion of the local real estate financing coordination mechanism must be sought. If the objection grounds are valid, no preservation or enforcement measures shall be taken; if already taken, they must be immediately lifted. (21st Century Business Herald)
3. The Federal Reserve: Resumption of interest rate cuts boosts the sentiment in the Hong Kong property market, expecting an increase in residential transaction volume in the fourth quarter, with new projects benefiting first.
On Wednesday local time, the Federal Reserve announced a significant 50 basis points rate cut, the first rate cut in over four years, lowering the target range to 4.75% to 5%. Bruce Lee, CEO of the residential department at Federal Reserve Property, said that the Federal Reserve announced the latest interest rate decision, a one-time rate cut of 0.5%, marking the first rate cut for the United States since March 2020, the magnitude of the rate cut is not only higher than expected, but there is also the possibility of further rate cuts this year. He believes that the restart of the rate cut cycle will definitely help boost the sentiment in the Hong Kong property market, with the expectation of an increase in residential transaction volume in the fourth quarter, with new projects benefiting first. It is expected that the volume of first-hand transactions in the end of the season will reach 4,700 units, an increase of about 80% from the estimated 2,600 units in the current season.
4. The interest rate spread between existing home loans and consumer loans is increasing, and intermediaries in the “transfer loan” business are busy during the Mid-Autumn Festival.
Consumer loans and operating loan interest rates are continuously escalating, resulting in a significant interest rate spread with existing mortgage loan rates, allowing loan intermediaries to see opportunities for substitution business quietly emerging. From the perspective of interest rates, after loan substitution, the borrower's debt cost does decrease, but the loan term is shortened, increasing the repayment pressure on the borrower. In addition, under the inducement of illegal loan intermediaries, borrowers who engage in loan substitution may be suspected of loan fraud and illegal misappropriation of loans; at the same time, they also face risks such as personal information leakage and property losses. (China Securities Journal)
5. Kunming supports using housing provident fund to pay for the down payment of newly built commercial housing.
On September 19, the "Kunming Provident Fund" WeChat official account issued a notice supporting the withdrawal of housing provident fund for the payment of down payment for the purchase of new commodity housing, reducing the pressure on residents' down payment funds. The housing provident fund applied for withdrawal by depositors will be directly transferred to the designated real estate development enterprise account specified in the commodity house purchase and sale contract.
6. Guangzhou regulates the release of existing property information.
Guangzhou Real Estate Intermediary Association issued a notice on standardizing the release of existing property information, optimizing and adjusting the rules for releasing existing property information on platforms starting from September 23. The main adjustments to the rules include: real estate agencies publishing property information on real estate internet platforms should be companies recorded with the real estate administrative authority, and the information on existing property sales to be published should include the property code verified by the real estate administrative department's property verification system (existing property signing system). Real estate agencies and their staff need written consent from the parties when publishing housing rental or sales information. If the information published leads to a transaction, the party cancels the commission, or the commission term expires, it should be deleted immediately. (Shanghai Securities News)
7. Buying a house in Nansha District, Guangzhou allows for household registration? Response: Currently, there is no such related policy.
Regarding the news about buying a house in Nansha District, Guangzhou and then being eligible for household registration, on September 19, staff from the Nansha District Human Resources and Social Security Bureau responded that there is currently no policy in Nansha District where purchasing commercial housing allows direct household registration in Nansha. (The Paper)
8. During the 14th Five-Year Plan period, Shenzhen has planned and built 537,000 units of affordable housing.
On September 19, the Shenzhen Municipal Committee of the Chinese People's Political Consultative Conference held a "Political Situation Briefing." Zhu Enping, director of the Shenzhen Housing and Urban-Rural Development Bureau, stated that in accordance with the work arrangements of the Municipal Party Committee and Government, the Municipal Housing and Urban-Rural Development Bureau has taken multiple measures, tapped into potential, strengthened the collection and supply of affordable housing construction. In the 14th Five-Year Plan period, our city plans to build and collect 540,000 sets/units and supply 340,000 sets/units. As of the end of August 2024, 537,000 sets/units have been built and collected, with a completion rate of 99.4%; and 293,500 sets/units have been supplied, with a completion rate of 86.3%. Next, our city will strengthen cooperation between the urban and suburban areas, overcome difficulties, tap into potential in depth, accelerate the collection of affordable housing construction, and speed up the establishment of a multi-level housing supply system of "one bed, one room, one set of housing" to effectively meet the housing needs of new urban residents, youth, and other groups.
9. Jiangxi Jinggangshan: subsided 0.01 million yuan for the purchase of the first new house, the number of housing units is verified based on the location of the house purchase
On September 19, according to the WeChat public account "Jinggang Government Openness," the Office of the People's Government of Jinggangshan City in Jiangxi Province recently issued a notice on "Several Measures to Further Promote the Stable and Healthy Development of the Real Estate Market." The notice mentions the implementation of subsidies for first-time homebuyers and housing purchase subsidies for families with children. In addition, it optimizes the standard for determining the number of personal housing units, and reasonably determines the proportion of down payment for mortgage loans. Starting from August 31, 2024, the range of personal housing loan units recognized by the housing provident fund is adjusted to be confirmed separately based on the location of the house purchase.
10. USA's existing home sales in August fell more than expected, with a supply-demand game of high house prices under the backdrop of interest rate cuts by the Federal Reserve
Existing home sales in the USA fell more than expected in August, as despite continued improvements in supply, house prices remain high. The Federal Reserve cut interest rates by 50 basis points, the first time to lower borrowing costs since 2020. This move may further push down mortgage rates that have already fallen to a year-and-a-half low. Lower mortgage rates may attract more homeowners to put their homes on the market, which could increase supply. The majority of homeowners have mortgage rates below 4%, and the so-called 'rate lock' has led to a shortage of supply in the secondary housing market. However, lower borrowing costs may stimulate demand, exceeding supply, keeping house prices high. Lawrence Yun, Chief Economist of the National Association of Realtors in the USA, said that August home sales were disappointing again, but the recent decline in mortgage rates combined with increased inventory is a potent combination that will provide a favorable environment for sales growth in the coming months.
11. China Construction Bank has issued a list of positive and negative due diligence exclusions for urban real estate financing coordination mechanism loans
Recently, it was learned from China Construction Bank that the bank fully leverages its traditional strengths in the field of construction, does well in financial work in the real estate sector, actively promotes the implementation of the urban real estate financing coordination mechanism, as of the end of August, the bank's white list of coordination mechanism projects exceeds 600, with an approval amount exceeding 130 billion yuan. China Construction Bank earnestly implements regulatory requirements, issues lists of positive and negative due diligence exclusions for urban real estate financing coordination mechanism loans, clarifies the scope of application and specific situations for the positive and negative lists, dispels concerns of personnel involved in financing coordination mechanism loan business, while clarifying business compliance standards for easy reference and smooth progress, promoting the smooth implementation of white-listed projects under the financing coordination mechanism, and helping to fight the battle for 'guaranteeing delivery and housing.' (China Banking and Insurance News)
12. Guizhou Zunyi: support real estate project mergers and reorganization, encourage financial institutions to carry out merger and acquisition loan business for high-quality real estate enterprises
The People's Government Office of Zunyi City, Guizhou Province recently issued a notice on the "Policy Measures to Promote High-Quality Development of Real Estate in Zunyi City", proposing adjustments to the down payment ratio for loans, reducing the interest rates for existing house loans, lowering the interest rates for housing provident fund loans, supporting intergenerational mutual aid for first-home housing provident fund, stabilizing the issuance of loans for real estate development, and other 38 policy measures. The document takes effect immediately, with no specified expiration date mentioned, valid until December 31, 2025. It explicitly relaxes the access conditions for housing provident fund loans for real estate projects. For new real estate projects, obtaining a pre-sale permit allows for processing building housing provident fund loan access; housing provident fund loans can be processed once the construction progress of the building reaches 70%. It also supports the mergers and reorganization of real estate projects. Financial institutions are encouraged to provide loans for the merger and acquisition activities of high-quality real estate enterprises in real estate projects. For projects undergoing judicial reorganization, financial institutions are encouraged to provide financial support to real estate enterprises undergoing judicial reorganization through "common benefit bonds" and other means, while asset management companies are encouraged to participate in project disposal by serving as investor for reorganization, revitalizing non-performing loans, and promoting project construction and delivery.
13. National Development and Reform Commission: Cooperating to promote the research and proposal of specific policy measures such as reforming the household registration system and accelerating the construction of indemnificatory housing.
The National Development and Reform Commission will fully leverage the role of the inter-ministerial joint conference on urbanization and the integrated development of urban and rural areas, work with relevant departments to formulate key annual tasks for new urbanization, and steadily promote the implementation of tasks. It will cooperate with relevant departments to study and propose specific policy measures for household registration system reform, provision of basic public services at the place of residence, compulsory education for migrant children, and accelerate the construction of affordable housing. At the same time, it will promote provincial governments to fulfill their main responsibilities and improve the working mechanism for advancing new urbanization.