1. Many local housing authorities responded to the cancellation of shared costs for home purchases: the intention is not to cancel shared costs, but to change the pricing method and publicity standards.

Recently, after several regions officially announced that the sales of commercial housing would be based on the interior area, the phrase 'cancellation of shared costs' once again became a trending topic. Meanwhile, discussions about the impact on home purchasing costs and living expenses have revived, with some homebuyers questioning, 'Did I pay too much before?' 'How will property management fees and heating fees be charged?' To address this, reporters interviewed various local housing authorities, who stated that the purpose of this policy is not to eliminate shared costs but to change the pricing method and publicity standards. This move aims to help homebuyers understand the actual size of the living space they are purchasing more clearly, assisting them in distinguishing the cost-performance ratio of commercial housing. Discussions on the living costs such as 'property management fees', 'heating fees', and 'taxes' will still require supporting policies.

2. With a maximum subscription ratio of 9.4:1, shared ownership housing in Shenzhen is highly sought after.

The application work for two shared ownership housing projects in Shenzhen—Jia Yu Fashion Garden and Yue Zhang Phoenix—has recently concluded, and the Bao'an Housing Bureau has published the results of the qualification review. It is reported that the subscription work for Jia Yu Fashion Garden had 8,069 households submit applications by December 15. After review, 7,812 of these applications were qualified, while 257 were not. A total of 1,729 units are available for allocation. The subscription work for Yue Zhang Phoenix also ended on December 15, with 6,413 households submitting applications. Upon review, 6,254 applications were qualified while 159 were not. There are 664 units available for allocation. Based on qualified households, the subscription ratios for Jia Yu Fashion Garden and Yue Zhang Phoenix are 4.5:1 and 9.4:1 respectively.

3. The volume of second-hand housing in Shenzhen continues to run at a high level.

According to the Shenzhen Real Estate Agent Association, in the first half of December, the total recorded volume of second-hand housing reached 4,738 units, showing steady growth compared to November and maintaining a high level. In November, the sales prices of new and second-hand housing in Shenzhen continued to rise, and the purchasing enthusiasm among improvement buyers and luxury home buyers increased. Statistics from the Shenzhen Real Estate Agent Association indicate that last week, 2,169 second-hand housing units (including self-service) were recorded, a decrease of 9.2% week-on-week. The weekly recording of second-hand housing saw a slight decline after a concentration release at the beginning of the month when the related tax reduction policy took effect. However, in absolute terms, the second-hand housing market remains relatively high. According to public data, on December 16, there were 68,762 valid second-hand housing units for sale in the city, a decrease of 202 compared to last week.

4. According to the China Index Academy, the average rent for residential properties in 50 cities nationwide fell by 2.72% in the first 11 months.

A report released by the China Index Academy shows that in 2024, due to the large-scale entry of assured rental housing and weak expectations for resident income, rental prices in key cities have declined. From January to November, the average rent for residential properties in 50 cities nationwide decreased by 2.72%, with first-tier, second-tier, and third- and fourth-tier representative cities dropping by 2.29%, 3.01%, and 2.38% respectively. From January to November, among concentrated long-term rental apartments in 30 cities, 28 cities experienced cumulative rent declines, pressured by the entry of newly built assured rental housing.

5. According to the China Index Academy, there has been a noticeable warming in the real estate market of major cities since the fourth quarter.

The report "2024 Summary & 2025 Outlook" released by the China Index Academy shows that in 2024, the overall real estate market in China remains in an adjustment trend. In the first three quarters, sales of new homes significantly declined year-on-year, while the secondary housing market has maintained a certain level of activity through "price for volume" strategies; however, the market cooled down in September. High-level meetings have proposed "to promote the stabilization of the real estate market," with policy goals aimed at reversing the fundamentals of the industry and instilling confidence in the market. Since the fourth quarter, the market in core cities has shown a clear warming.

6. The "Wuyou Replacement" program by Shanghai Lianjia has reached 160 cooperative new housing projects in Shanghai.

According to the "2024 Shanghai Lianjia Media Release Conference," since the launch of the "Wuyou Replacement" project in November 2023, there have been 160 cooperative new housing projects under the "Wuyou Replacement" program within the city of Shanghai.

7. Tianjin has introduced new regulations for flexible employment personnel regarding housing fund: voluntary participation and free exit.

The Tianjin Housing Provident Fund Management Center has issued the "Management Measures for the Participation of Flexible Employment Personnel in the Housing Provident Fund System," which will take effect on December 25, 2024. Participation is voluntary and exit is free. Flexible employees can withdraw their housing provident fund for situations including rental housing, purchasing their own housing, or repaying loan principal and interest, following the same policies as employed workers. Flexible employees reaching the legal retirement age can withdraw their housing provident fund according to the retirement withdrawal policies for employed workers. (Tianjin Housing Provident Fund)

8. The maximum housing provident fund loan amount in Guizhou's Bijie has been adjusted to 0.8 million yuan, with an increase of 20% for families with multiple children.

The Guizhou Provincial Bijie City has issued a document adjusting and optimizing housing provident fund policies, including support for withdrawals for purchasing housing outside the province, adjusting the maximum loan amount and calculation multiples for housing provident fund loans, adjusting preferential policies for housing provident fund loans, and supporting inter-generational assistance in purchasing homes using housing provident funds. Specifically, the maximum loan amount for housing provident funds in Bijie City has been adjusted to 0.8 million yuan for families with dual contributors and 0.7 million yuan for families with single contributors, with the loan amount calculated at a multiple of 20 times the balance in the applicant's provident fund account. For high-level talent introduced by the Bijie municipal government purchasing their first home within three years of introduction, new citizens (including young people) purchasing their first home, multi-child families (two children and above), and those applying for provident fund loans for home purchases within the Qixingguan district, the maximum loan amount will increase by 20%, calculated at 25 times the balance in the applicant's provident fund account. (The Paper)

9. COUNTRY GARDEN responded that winning the Lanzhou residential land at 0.155 billion yuan was not an active land acquisition, but rather the government used the land to offset debts.

COUNTRY GARDEN (02007.HK) subsidiary Lanzhou Chunlin Real Estate Development Co., Ltd. won residential land numbered G2421 at a total price of 0.155 billion yuan. This parcel is located in the Qingbaishi area of Chengguan District, Lanzhou City, Gansu Province, east of Furong Road, west of Yanqing Road, and north of Huanhua Road. The transfer documents show that the land transfer area is 68,099.8 square meters, with a floor area ratio of 2, the starting listing price was 0.154 billion yuan, and the total investment amount is 0.2724 billion yuan. Regarding the cooperative land acquisition, COUNTRY GARDEN stated that this land acquisition was not taken proactively by the company, but was based on the project company's costs related to the land removal process with the local government in Lanzhou and some municipal infrastructure construction costs. After negotiations, the government chose to pay the related fees through land offsetting debts. For this parcel, the company plans to transfer it, and the proceeds will be used to fully ensure the delivery of properties.

10. The 30-year mortgage rate in the USA rose to 6.72%.

Freddie Mac's 30-year mortgage rate increased from 6.60% last week to 6.72% this week, still below last year's high of 6.84% in November. The highest record was set at 7.22% on May 2, 2024. Today's other housing data shows that the annualized sales of existing homes increased from 3.96 million units last month to 4.15 million units, although the housing market has released some pressure, the sales pace remains closer to the low points of past sales trends.

11. Real estate professionals: The hawkish Federal Reserve will hit commercial property once again.

After the Federal Reserve made a tough forecast, the market anticipates that interest rates will continue to rise next year. Lisa Pennington, executive director of the Commercial Real Estate Financial Policy Committee, stated that by 2025, higher interest rates may continue to drag down commercial real estate valuations and loans. Pennington mentioned that before the pandemic outbreak, many landlords of office buildings, apartment buildings, etc., were accustomed to loan interest rates below 4%, but current loan rates often approach 6% or 7%. She said that the Federal Reserve's tightening policy will continue to limit the expected prices that real estate investors can anticipate when marketing properties they intend to sell.