Source: Securities Times Author: Wu Jiaming
Recently, some market news indicated that banks in Guangzhou have officially issued a notice that buyers can reduce the number of “loan limits” when using their own homes for long-term rent or listing for sale.
According to reports, a joint stock bank in Guangzhou issued an internal document to implement Guangzhou's “Notice on Further Optimizing Policies and Measures for the Stable and Healthy Development of Our City's Real Estate Market” (hereinafter referred to as the “Notice”) on optimizing and adjusting purchase restrictions in Guangzhou. According to the notice, the bank will further optimize the branch's interest rate pricing for personal housing mortgage loans, that is, when purchasing housing with a floor area of 120 square meters or more (excluding 120 square meters) when there is currently 1 housing unit in Guangzhou and the loan has not been settled, if the customer's family uses their own housing as rental housing and goes through the housing rental registration procedure, or if the Guangzhou Stock Housing Transaction System obtains a listing information code and plans to sell it, the number of family housing units will be reduced accordingly when purchasing a home. In terms of interest rates, according to the Joint Stock Bank notice, applying for a mortgage loan for newly purchased housing can be executed at a price not lower than the interbank interest rate in the Guangzhou market.
In response, the reporter also sought evidence from various local real estate agencies in Guangzhou. The interviewees confirmed the above information. “In fact, as early as the end of February, some banks began implementing the above policies to test the degree of market acceptance. For example, if you list two apartments in an area where Guangzhou is still restricted for purchase, you can get a loan for the first home if you buy a third home.” Some interviewees said.
According to reports, this adjustment is based on the “Notice” issued by Guangzhou City on January 27. It is proposed that within the restricted purchase area, residential households use their own housing as rental housing and go through the housing rental registration procedure, or obtain a housing information code from the Guangzhou Stock Housing Transaction System and plan to sell it, and the number of household housing units will be reduced accordingly when purchasing a home.
Recently, Guangzhou second-hand property market transaction reports released by various intermediaries showed that the number of new and second-hand housing transactions in Guangzhou declined markedly in February. However, benefiting from a series of favorable policies introduced before the Spring Festival, the popularity of the market clearly rebounded after the holiday season, and the performance of hot projects in central urban areas was even more obvious. According to data from the Guangzhou Central Plains Research and Development Department, in the week after the Spring Festival holiday (February 19-25), the number of online second-hand housing registrations in Guangzhou reached 1,489, a sharp increase of 411.68% over the previous month.
The “Intermediaries Association Manager Index Report for March 2024" issued by the Guangzhou Real Estate Agents Association mentioned that under the dual support of favorable policies and LPR cuts for a period of 5 years or more, industry confidence is currently picking up, and practitioners generally believe that “Xiaoyangchun” can be expected in the market.
The China Index Research Institute said that from the perspective of the real estate market, the current market has entered the traditional “gold three silver four” node. Although the high base effect last year may have put pressure on the year-on-year growth rate of real estate sales in March, as the core city policy effects introduced earlier become more apparent, the real estate market expectations and confidence are expected to gradually recover. The real estate market in some core cities is expected to experience a “Xiaoyangchun” market. It is expected that all regions will maximize regulatory autonomy. Due to city policies and measures as needed, first-tier cities are expected to continue to optimize purchase restriction policies. Second-tier cities may fully liberalize purchase restrictions and reduce the down payment ratio in core cities, There is still room for lower mortgage interest rates. The acceleration of affordable housing construction and urban village renovation is also helping to stabilize investment and stabilize expectations.
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