The six major commercial banks have announced new policies: the adjustment cycle for housing loan interest rates is now set to be at least 3 months, allowing flexible responses to changes in the LPR.

Industrial and Commercial Bank, Agricultural Bank of China, Bank of China, China Construction Bank Corporation, Bank of Communications, and Postal Savings Bank of China announced today (31st) that starting tomorrow (November 1st), they will successively implement a new pricing mechanism for commercial personal housing loan interest rates. The announcements by the six major banks explicitly eliminate the minimum one-year limit on the housing loan interest rate adjustment cycle. Borrowers can request the adjustment of the adjustment cycle to three or six months at any time, or choose to keep it at one year. It is important to note that during the entire repayment period, the housing loan interest rate adjustment cycle can only be adjusted once. This means that if borrowers anticipate a decrease in loan rates in the future, adjusting the adjustment cycle to three months may allow them to benefit from the preferential loan market quote rate (LPR) earlier; if borrowers expect an increase in loan rates, keeping the adjustment cycle at one year may result in a delayed increase in their own housing loan rate following the loan market quote rate (LPR). (CCTV News)

After the implementation of the new pricing mechanism for commercial personal housing loan interest rates, the People's Bank of China will no longer uniformly adjust the existing housing loan rates.

According to reporters, in addition to the six major commercial banks, other commercial banks will also successively issue announcements in the near future to clarify the new pricing mechanism for personal housing loans. After the implementation of the new pricing mechanism for commercial individual housing loans, the People's Bank of China will no longer uniformly adjust the existing house loan interest rates. (CCTV News)

Expert interpretation: the length of the adjustment cycle has a neutral impact on borrowers, who need to consider both the trend of interest rates and their own situations.

Experts have stated that the terms of mortgage contracts are generally long, with some terms reaching up to 30 years. From the perspective of the entire loan period, the impact of the length of the repricing cycle on borrowers is neutral. During the LPR downward cycle, the shorter the repricing cycle, the sooner borrowers can enjoy interest rate reductions. If the future economic situation improves and policy rates and LPR enter an upward trend, during the interest rate hiking cycle, the shorter the repricing cycle, borrowers will also apply higher rates at a faster pace, bearing the burden of rate hikes earlier. The repricing cycle can only be adjusted once, and borrowers need to carefully consider their own situation to make prudent decisions and make good use of this one-time choice. (CCTV News)

"Shanghai Seven Regulations" help boost the recovery of Shanghai's second-hand property market, with trading volume in October increasing by over 50% month-on-month. The transaction volume of second-hand residential properties is expected to reach 0.025 million units.

Data from the Shanghai Property Trading Center shows that from October 1st to 28th this year, the city's total second-hand property transactions (including residential, commercial, office buildings, parking spaces, etc.) have reached 21,922 units. According to data from multiple real estate agencies, transactions in second-hand residential properties alone this month in Shanghai have exceeded 0.02 million units, up by 52.3% compared to the same period in September. This clearly demonstrates the driving force of the "Shanghai Seven Regulations". The above-mentioned institutions predict that with this trend, the transaction volume of second-hand residential properties in Shanghai in October is expected to reach 0.025 million units. The monthly transaction turning point in Shanghai's second-hand property market is around 0.015 million units, and exceeding 0.02 million units signifies an active market. If it reaches 0.025 million units, October will be the second highest month in transaction volume since June 2021. (Observer News)

5. Peking property market "930 new policy" full moon: developers withdraw discounts, shorten payment period.

During the full moon of the "930 new policy" in the real estate market, the Beijing new housing market continues to be active. As of October 28, the number of signed contracts for new commercial residential properties in Beijing was 4,227 units, a month-on-month increase of 42.7%. The sales strategy of current new housing projects in Beijing has undergone significant changes: many developments have explicitly mentioned that they will withdraw existing discounts at the end of the month, and some developers have started to shorten the fundraising period to meet the annual payment target. (Beijing Business Daily)

6. The national average interest rate for new commercial personal housing loans issued in the third quarter was 3.33%.

Reporter learned today from the People's Bank of China that the national average interest rate for new commercial personal housing loans issued in the third quarter of 2024 was 3.33%. (CCTV News)

7. Institutions: the month-on-month growth rate of second-hand housing transactions in first-tier cities in October ended three consecutive months of decline, turning positive for the first time.

Shanghai E-House Real Estate Research Institute released data showing, based on daily transaction data up to the 29th of October, it is estimated that the number of second-hand residential transactions in first-tier cities in October will be around 57,260 units, with a month-on-month growth rate of 49% and a year-on-year growth rate of 57%. The trend in month-on-month and year-on-year indicators is actively positive. From the perspectives of transaction volume, month-on-month, year-on-year, and city performance, excluding the anomaly in March 2023, the number of second-hand residential transactions in first-tier cities in October this year will reach the highest level since the second half of 2021, with a change in the month-on-month growth rate indicator shifting from negative for three consecutive months to positive for the first time. The year-on-year indicator has changed from negative in September, not only turning positive, but also showing a significant increase. In terms of cities, all four cities are showing a positive growth trend in month-on-month and year-on-year indicators, and the magnitude is significant. Taking Shanghai and Shenzhen as examples, the expected month-on-month and year-on-year indicators in Shanghai for October are 85% and 81%, significantly surpassing the "life and death line"; while for Shenzhen, they are 86% and 123%. The market activity is relatively high. (Beijing Business Daily)

8. The largest renovation project in Shenzhen was fully capped, with 2,562 relocated owners choosing their homes last month.

On October 29th, according to the "Futian Happy" WeChat public account, the main body of 13 tower buildings in the transformation project of the North Bank area in Futian District (Nanhua Village renovation) was fully capped on October 28. Between September 7th and 21st, 2,562 relocated owners of the Nanhua Village renovation project chose their homes. As one of the first batch of projects implemented by the government after the new policy on renovation in Shenzhen, Nanhua Village renovation has attracted much attention. In the absence of systematic renovation policy precedents, the Futian District Committee and Government included Nanhua Village as one of the first batch of government-led renovation projects implemented after the new renovation policy in Shenzhen, making Nanhua Village the largest renovation project in Shenzhen. (NBD)

Nanjing's 'Stabilizing Growth 30 Measures' have been introduced: the down payment for the second home is reduced to 15%, and second-hand homes can be 'transferred with a mortgage'.

Recently, in the implementation details of the 'Stabilizing Growth 30 Measures' released in Nanjing, the official announcement from Nanjing shows that the minimum down payment ratio for commercial loans for the second home has been lowered to 15%. Second-hand homes can be exchanged for new ones with a mortgage, house tickets can be transferred, and support is provided for the construction of improved residential buildings on existing residential land that has been sold but not developed, to meet the needs of homebuyers and make more citizens settle down with peace of mind. The main favorable policies in this 'Stabilizing Growth 30 Measures' mainly include five aspects. Firstly, implement adjustments to the interest rates and down payment ratios for existing homes, with the down payment for the second home reduced to 15%. Implementation of adjustments to the interest rates and down payment ratios for existing homes and other supporting policies, guiding commercial banks to steadily and orderly reduce interest rates on existing home loans, further reducing the interest payments of homebuyers, and lowering the minimum down payment ratio for commercial personal housing loans for the second home to 15%.

Shenyang further optimizes and adjusts the policy for individual housing loans from the housing provident fund, with a minimum down payment ratio of 15%.

According to the WeChat official account of Shenyang Housing Provident Fund Management Center on October 30th, Shenyang City further optimizes and adjusts the measures of personal housing loan policies related to housing provident fund, involving adjusting the minimum down payment ratio of housing provident fund loans to 15%, supporting eligible married families to use housing provident fund loans again, and five other policy measures, which will take effect from November 1, 2024.

Loan disbursement exceeds 75 billion, with the latest progress in credit approval for the 'white list' projects in the real estate sector in Henan province.

As of October 30th, the credit disbursement rate for 'white list' projects in Henan province has reached 70.04%, with the loan disbursement scale exceeding 75 billion yuan. This has effectively promoted the stabilization and consolidation of the real estate market, and residents' confidence in the delivery of new homes is recovering, indicating a preliminary manifestation of the macroeconomic climate of real estate 'stabilizing after a decline'. (Dahe Wealth Cube)

Vanke delivered over 110,000 units in the first three quarters, and all public bonds for the year have been redeemed.

Vanke's third quarter report released in the evening shows that in the first three quarters, Vanke achieved a revenue of 220 billion yuan, continued to adhere to the financial safety line, completed the repayment of all public bonds this year, maintained positive operating cash flow in the third quarter, with a repayment rate of over 100%, achieved financing of over 77 billion yuan. At the same time, Vanke delivered high-quality products exceeding 0.11 million units, sales exceeding 180 billion yuan outperforming the market, continuously enhancing product strength and accurate investment capabilities, with all new investment projects opened achieving 100% realization rate, activating stock production capacity by over 47 billion since 2023. At the end of September, the Central Political Bureau meeting made clear requirements for the real estate industry to "stop the decline and stabilize", various policies supporting the stable development of the real estate sector have been successively introduced, greatly encouraging all sectors of the market. Leading company Vanke seized the market opportunities brought by the favorable policies, achieving good sales performance during the National Day holiday, with subscription amount exceeding hundreds of billions.

13. Institutions: usa's September existing home sales contract signing index month-on-month surge

The National Association of Realtors (NAR) stated that the U.S. existing home sales contract index rose from 70.6 in August to 75.8 in September, reaching the highest level since March, with a month-on-month increase of 7.4%. The month-on-month increase in September is the largest since June 2020 (14.9%), and the national sales rate increased by 2.6% year-on-year, the largest since May 2021. NAR's Chief Economist Lawrence Yun stated that due to homebuyers taking advantage of lower mortgage rates at the end of summer and more inventory choices, contract signings increased in all regions nationwide. If the economy continues to add jobs, inventory levels rise, and mortgage rates remain stable, further increases are expected. However, it is certain that mortgage rates have been climbing since September last year. Nevertheless, Yun believes that the outlook for home sales in the next two years should become clearer.