Mini Program: Daily Real Estate Industry News Summary.
When will the banks implement the "interest rate cut" for existing house loans? Several banks have stated that it will take more than a month.
Reporters contacted multiple banks to understand the situation of reducing interest rates on existing home loans. Currently, banks have acknowledged the policy adjustment of existing home loan interest rates but have not received relevant adjustment notices yet. They will make unified adjustments when they receive them. At the same time, industry insiders indicate that after the new policy is announced, major banks will need around one to several months to implement the adjustments, and most likely will complete the process around the same time period. (China Securities Journal)
Lyon: Mainland China's support for the property market brings surprises with the reductions in the down payments for second homes and the optimization of loan plans.
Lyon's report reveals that the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly disclosed new measures, including five major measures targeting the real estate sector. Most policies are in line with expectations, but the introduction of the down payment reduction for the second house and optimization of the refinancing plan brings positive surprises, in line with the bank's expectations for policy shift. The bank believes that although the related measures are not sufficient to reverse the situation, the possibility of monetary stimulus policy is greater after the Fed's rate cut and the People's Bank of China lowered the Reserve Requirement Ratio (RRR) by 50 basis points.
China Zheshang Bank: 87 "white list" projects for real estate have been cumulatively launched.
According to information from China Zheshang Bank, as of now, the bank has organized and coordinated 87 "white list" projects, with a total approved credit amount of approximately 32.3 billion yuan, and a cumulative release amount of around 13.9 billion yuan. Looking at the overall banking industry situation, public data shows that as of now, commercial banks have approved over 5700 "white list" projects, with a total financing amount approved reaching 1.43 trillion yuan, supporting over 4 million residences to be delivered on time. China Zheshang Bank's Chief Economist Yin Jianfeng stated that the introduction of the urban real estate financing coordination mechanism and other real estate support policies is an important move to resolve risks and promote the switch in real estate development models. It can be seen that with the steady progress of the urban real estate financing coordination mechanism, the supply side of the real estate industry has been basically stabilized, and the momentum of rapid decline in property prices in some cities has been curbed. Along with proactive fiscal and monetary policies acting on the demand side, the real estate industry has entered a benign track of steady development. (Securities Times)
Nearly 90% of second-hand houses in Shenzhen are transacted below the "reference price".
Since the beginning of the year, the frequency of optimizing real estate policies across various regions has accelerated. Under the boost from favorable policies, the market activity has shown a certain degree of increase. The effect on the second-hand housing market is quite significant. However, industry insiders believe that the main changes in the second-hand housing market are mainly due to owners "trading volume for price". Data from the Leju Research Center shows that as of September 22nd, since the third quarter, the proportion of second-hand properties sold in Shenzhen at a price more than 10% below the "reference price" is 14.28%, while the proportion of sales between 10% to 20% below the "reference price" reached 30.64%, and those sold more than 20% below the "reference price" stood at 44.79%. When combined, the proportion of properties sold below the "reference price" reaches as high as 89.71%, which is a further increase of 4.43% compared to the second quarter. (Securities Times)
The 'era of large-sized units' is coming, and many cities have introduced policies to encourage the purchase of large-sized residential properties.
Since the beginning of this year, the four major first-tier cities and some core cities have successively introduced new real estate policies to encourage the transaction of large-sized properties or encourage real estate developers to develop larger residential products. Data recently disclosed by the 58 Anjuke Research Institute shows that the new housing market in Shanghai has gradually shifted to a market dominated by the improvement-focused group, with just-improved three-bedroom products being the absolute main force in the new housing market, and luxury products over 140 square meters showing an explosive trend; The housing market in Guangzhou has a high demand for economical three-bedroom and four-bedroom products, and such products are already in short supply.
Citi: Mainland policies have a slightly positive impact on domestic property sales, more supportive measures are expected to be introduced.
Citi released a report stating that the series of financial easing and real estate-related measures announced in the mainland, including guiding banks to lower the interest rates for existing housing loans. The bank believes that the relevant measures will have a slight positive impact on domestic property sales, but will not affect property prices. Analysis by the bank shows that after the policy was introduced on May 24th, only 7% of homebuyers used a 15% down payment; mortgage interest savings of 19 billion RMB may not necessarily flow into retail sales, depending on employment and income expectations. However, the bank pointed out that in October, decision-makers will not underestimate the determination to support the real estate sector, expecting more supportive measures to be introduced in September and October, including more flexibility in land exchange and land use changes; discussing pre-sale of parking spaces; accelerating inventory purchases and expanding to land; future 20 to 30% of land supply may only be allowed for sale after completion.
Gansu Pingliang: Starting next year, technical secondary school and college graduates who use housing provident fund loans to purchase their first homes will receive a subsidy of 0.01 million RMB.
The Housing and Urban-Rural Development Bureau of Pingliang City, Gansu Province, issued 'Several Measures of Pingliang City to Further Promote Real Estate Market Investment and Consumption', involving the cancellation of the record-filing system for newly constructed commercial residential property sale prices, implementation of tax incentives, increase in housing provident fund loan quotas, implementation of the policy to provide housing provident fund subsidies for technical secondary school and college graduates, and encouragement of 'old-for-new' housing replacements. The document stipulates that starting from January 1, 2025, technical secondary school and college graduates who participate in the flexible employment housing provident fund system in Pingliang City, within 3 years of receiving their graduation certificates (based on the registration time of the graduation certificate), and purchase their first self-occupied housing within the administrative area of Pingliang City and apply for a housing provident fund loan will receive 0.01 million RMB in housing subsidy funds from the City Housing Provident Fund Center.
GF Securities: Real estate transaction volume has shrunk, continuously transmitting price declines, with the Yangtze River Delta region leading in economic activity.
On September 24th, GF Securities released a research report stating that the continuous shrinkage of real estate market transaction volume is translating into price declines. In August, the proportion of cities where new home prices fell or remained unchanged reached 97%, while for second-hand homes, this proportion was 99%, with prices remaining flat month-on-month. The proportion of price declines is still high. Since the second quarter of 2024, the decline in land transaction floor prices has been significant, with the average transaction price of commercial and residential land in 600 cities in August at 2699 yuan per square meter, a 29.3% year-on-year decrease. The economic outlook in the Yangtze River Delta region has been relatively good this year. In August, the supply-demand ratios for the average 6 months in Jiangsu, Zhejiang, and Shanghai were 1.1, 1.1, and 1.0 respectively, all much lower than the national average. The scale of construction starts and investments remains at a low and stable level, while the completion performance is weakening. The narrowing of the decline in financing cash flow driven by development loans has been observed, but the scale of funds in place is still smaller than the investments.
Hubei Yichang: Cancelling the guidance on the prices of newly built commercial residential properties and generally no longer concentrating on newly built resettlement houses.
Yichang Municipal People's Government Office issued a notice on the promotion of stable and healthy development of the real estate market, including measures to support enterprises and institutions to build according to demand, expand the coverage of housing guarantees, and cancel the guidance on the prices of newly built commercial residential properties among 6 other measures. Yichang explicitly stated that the guidance on the prices of newly built commercial residential properties will no longer be implemented citywide. While ensuring that urban subsistence allowances and low-income families in housing difficulties are assured, stable employment migrant workers are openly allocated public rental housing based on qualifications. Migrant agricultural workers meeting the conditions are included in the scope of guaranteeing rental housing, with priority given under equal conditions. The county-level cities are supported in the acquisition of existing completed commercial housing for use as affordable housing, including teachers, medical personnel, police officers, and other public servants working in towns, who are included in the scope of housing guarantees at the county level.
Yichang Municipal Government releases new real estate policies, cancelling price guidance and expanding the coverage of housing guarantees.
On September 25th, the Yichang Municipal Government Office issued a notice on measures to promote stable and healthy development of the real estate market, canceling the guidance on the prices of newly built commercial residential properties, expanding the coverage of housing guarantees, and supporting enterprises and institutions to build according to demand, in order to promote a stable and healthy development of the real estate market. Yichang City explicitly stated that the policy of price guidance for newly built commercial residential properties is no longer in effect citywide. While ensuring urban subsistence allowances and low-income families in housing difficulties are taken care of, stable employment migrant workers are publicly allocated public rental housing based on qualifications. In addition, migrant agricultural workers meeting the conditions will be included in the scope of guaranteeing rental housing and given priority. Furthermore, county-level cities are encouraged to purchase existing completed commercial housing for use as affordable housing and include teachers, medical personnel, police officers, and other public servants working in towns within the scope of housing guarantees at the county level. The new real estate policy introduced by Yichang City aims to promote stable and healthy development of the real estate market through measures such as cancelling the guidance on the prices of newly built commercial residential properties and expanding the coverage of housing guarantees. The implementation of these policies is of significant importance in stabilizing market expectations and meeting the housing needs of different groups. Furthermore, by supporting enterprises and institutions to build according to demand and acquiring completed commercial housing for use as affordable housing, it will help optimize the housing supply structure and promote a balance between supply and demand in the real estate market.