Mini Program: Daily Real Estate Industry News Summary.
Li Yunze: Make every effort to dispose of the unsold and difficult-to-deliver commodity housing projects currently under construction.
On July 3-4, Li Yunze, Party Secretary and Director of the Financial Supervision Bureau, led a team to investigate in Jiangsu. Li Yunze presided over a symposium on the work of ensuring the delivery of housing in key cities in Jiangsu Province in Xuzhou. Li Yunze emphasized that we must adhere to the policy tailored to each city, take cities as the main body and projects as the center, and adopt targeted and effective measures to make every effort to dispose of the under-construction and sold commodity real estate projects that are difficult to deliver. We must treat different property companies with the same yardstick, support compliant projects of different property companies that meet the requirements, effectively safeguard the legitimate rights and interests of homebuyers, and boost confidence in the real estate market.
Several banks in Shenzhen require that mortgage loans can only be disbursed after the main body is capped, which will be implemented from July 5.
Several commercial banks in Shenzhen have required that individual housing mortgage loans can only be disbursed after the main body is capped. A major banker has told reporters that the relevant requirements have been clarified and will be implemented from July 5th. A person familiar with a Shenzhen real estate company also told reporters, 'We have just received news from the bank that the mortgage loan in Shenzhen will have to be disbursed after the main body is capped, which will be implemented tomorrow.'(21st Century Business Herald)
Putian, Fujian: Increase the amount of provident fund loans, and increase the amount by 0.1 million yuan for those who give birth to and raise two or more children.
On July 2, the Putian City Housing Provident Fund Management Center of Fujian Province issued a notice on the adjustment of the housing provident fund policy. The document specifies that the maximum loan amount of the housing provident fund in Putian City has been adjusted from 0.7 million yuan to 0.8 million yuan, and the maximum loan amount for the single-sided deposit of the housing provident fund remains unchanged at 0.5 million yuan. The amount of provident fund loans for families with more children has been increased, and those who give birth to and raise two or more children can increase the maximum loan amount by 0.1 million yuan on the basis of the current maximum loan amount in the city (that is, 0.9 million yuan for employees who pay double-side provident fund, and 0.6 million yuan for employees who pay single-side provident fund).(The Paper)
Hangzhou Fuyang: Real estate companies can apply for sales rewards for on-sale projects with a quarterly increase in sales area of 10% or more.
According to the WeChat public account 'Fuyang Releases', on July 4, Fuyang District of Hangzhou City, Zhejiang Province issued a notice on promoting the healthy and stable development of the real estate market. For on-sale projects with a quarterly increase in sales area of 10% or more, a sales area reward of 10 yuan/square meter will be given; For the part with a quarterly increase of more than 20%, a sales area reward of 20 yuan/square meter will be given. Which projects can be included in the sales incentive scope? The Fuyang District Housing and Construction Bureau explained that during the policy implementation period, newly built commodity housing projects that are issued with pre-sales permits and sign sales contracts for the first time and hit the market, as well as on-sale projects with a quarterly increase in sales area of 10% or more, can apply for sales rewards.
In Huanggang, Hubei, land purchased for affordable housing can be supported by local government special bonds and other funds when they are taken back.
The Natural Resources and Planning Bureau of Huanggang City, Hubei Province has issued a document: In terms of 'encouraging development', obstacles to development and construction should be eliminated, planning conditions and related supporting facilities requirements should be improved, the completion date should be reasonably adjusted, and default responsibilities caused by natural disasters and other factors should be exempted according to law; In terms of 'promoting transfer', the role of the second-level land market should be fully played, the 'mortgage transfer when transferring real estate' for real estate should be promoted, cooperation in judicial and bankruptcy disposal should be carried out, the separation and development procedures should be optimized, and cooperative development should be supported; In terms of 'regulating purchase and recovery', it emphasizes that according to the circumstances that should be taken back by law, the equivalent exchange and other methods can be adopted for negotiated take-back. The land purchased for affordable housing can be supported by local government special bonds and other funds, but we should act within our means and resolutely avoid new implicit local government debt.
According to the principle of 'ordering according to demand', idle land should be taken back legally in Xiangyang, Hubei.
Recently, many departments in Xiangyang City, Hubei Province have jointly issued several measures to further promote the healthy and stable development of the real estate market, launching 9 new measures to promote the healthy and stable development of the real estate market in Xiangyang City. Measures mentioned that the minimum down payment ratio for commercial personal housing loans for the first home purchase has been adjusted from not less than 20% to not less than 15%, and the minimum down payment ratio for commercial personal housing loans for the second home purchase has been adjusted from not less than 30% to not less than 25%. At the same time, the lower limit of the interest rate policy for commercial personal housing loans for the first purchase and the second home purchase has been cancelled. In terms of revitalizing the stock land, idle land should be taken back legally according to the principle of 'ordering according to demand'. The procedures for planning and land supply can be simplified by adopting a parallel approach of 'taking back-supply'. For the land that has not completed 25% of the development investment, a pre-registration transfer system will be implemented after the end of the policy period. (Xiangyang House Association)
In a pilot area in Hangzhou, children can enroll in school with a contract after their parents pay the full amount for a new house.
Hangzhou Fuyang District issued a new real estate policy on July 4, launching the pilot 'enrollment for house purchase'. According to the new policy, from 2024 to the end of April 2026, if parents of eligible children and teenagers in Fuyang District obtain the real estate certificate of the newly built residential commodity housing but do not meet the original policy time limit requirements (not one year after April 30 of that year) or if their parents sign a formal purchase contract for a new residential commodity housing and pay the full amount (in one lump sum or in installment loans), and they have a need for newly enrolled students, they should apply to the district housing and construction bureau for house condition verification. After verification, the district education bureau will verify the enrollment application. When enrolling students, those who have already obtained real estate certificates will have priority over those who have only signed contracts. At the same time, according to the order of parents' property ownership certificate issuance and contract signing, the planning for enrollment will be arranged after the end of the original policy based on the remaining public school admissions. (The Paper)
Guiyang plans to increase the maximum amount of provident fund loans for families with multiple children to 1 million yuan.
On July 3, the Housing Provident Fund Management Center of Guiyang City, Guizhou Province issued a notice soliciting opinions on the "Notice on Increasing the Maximum Housing Provident Fund Loan Amount in Stages (Solicitation Draft)". The opinion solicitation period will end on July 16, 2024. The "Solicitation Draft" shows that by December 31, 2024, Guiyang plans to increase the maximum housing provident fund loan amount to 0.8 million yuan. Multi-child families can have a loan increase of 0.2 million yuan, which is 1 million yuan. For depositors who purchase their first self-occupied house in Guian New District, the maximum housing provident fund loan amount can be increased by 20% on the above basis, which is 0.96 million yuan for non-multi-child families and 1.2 million yuan for multi-child families.
In Hainan Ling Shui: Those who have held a residence permit in Hainan for one year can purchase two commodity houses in Ling Shui.
On July 3rd, the Office of the People's Government of the Li Autonomous County of Lingshui, Hainan Province issued a notice on the "Real Estate Regulation Measures for Li Autonomous County of Lingshui", which makes further optimization in terms of introducing personnel, attracting investment, supporting industries, etc., and shall be effective from the date of issuance and valid until December 31, 2025. The "Regulation Measures" stipulate that those who hold a residence permit in Hainan and have no self-owned housing in Lingshui can purchase one commodity house in Lingshui, and those who have held a residence permit for one year can purchase two commodity houses in Lingshui. Residents' families who have lived in Hainan (excluding those who hold a residence permit due to talent) for one year and have no self-owned housing in Lingshui can purchase one commodity house，and those who have lived there for two years can purchase two commodity houses.
According to the China Index Academy, the scale of real estate enterprise bonds due in the first half of the year reached 279.9 billion yuan.
From the financing side, according to the statistics of the China Index Academy, in the first half of the year, the total financing amount of real estate enterprise bonds is about 282.29 billion yuan, a year-on-year decrease of 26.1%. In credit bonds, the proportion of central state-owned enterprise issuance scale reached 93%, an increase of 3 percentage points from the same period last year; The issuance scale of private real estate companies and mixed ownership real estate companies both decreased significantly compared with the same period last year. In addition to financing, real estate companies also face huge debt pressure. Real estate companies that have achieved debt restructuring still face the risk of default again. Kreray statistics show that the scale of real estate enterprise bonds due in the first half of the year reached 279.9 billion yuan, with the scale of period bonds in the first and second quarters exceeding 130 billion yuan, and the scale of bonds due in the third quarter will exceed 100 billion yuan. Enterprises that have no debt repayment pressure or have completed debt renewal and replacement will still face the same debt pressure in the future. If the investment end, sales end, and financing end continue to show no signs of improvement, the debt pressure in 2025 may even be greater than that in 2024.
In the first half of the year in Hong Kong, the total value of building sales contracts was 280.9 billion Hong Kong dollars, up 52.1% from the previous month and down 4.2% year-on-year.
The Land Registry of Hong Kong announced that a total of 35,089 types of building sales contracts were registered with the department in the first half of this year, up 51.2% from the second half of last year and 0.8% YoY. The total value of the building sales contracts was HKD 280.93 billion, up 52.1% from the second half of last year, but down 4.2% YoY. During the period, a total of 35,425 building transfer contracts were signed, down 6.2% from the second half of last year and 27.2% YoY. The total value of the building transfer contracts was HKD 213.74 billion, down 20.3% from the second half of last year and 33.5% YoY.
Xing Ziqiang: It takes 3 trillion to 4 trillion quasi-fiscal funds to support the normal return of real estate inventory.
Morgan Stanley's chief economist in China, Xing Ziqiang, recently stated that to bring real estate inventory back to normal levels and return to a reasonable level, it may require 3-4 trillion yuan in quasi-fiscal funding support. In May, the People's Bank of China proposed to establish a 300 billion yuan re-lending facility for affordable housing, encouraging and guiding financial institutions to support local state-owned enterprises in acquiring completed but unsold commercial housing at reasonable prices according to market-oriented and legal principles, to be used as distribution or rental-type affordable housing, with an expected drive of 500 billion yuan in bank loans. (Jiemian)
The Vice President of China Index Research Institute stated that the key point of whether the market can stabilize in the second half of the year is the implementation of policies.
Looking forward to 2024, Huang Yuxiang, CEO of Zhi Control, and executive vice president of the Chinese Index Research Institute, predicts that under the continued efforts of various policies in the second half of the year, the downward trend of the market will slow down, but the wait-and-see sentiment of residents and housing price expectations will still drag down the market's repair pace. The market as a whole may still be in the bottoming stage, and the sales volume of new commercial housing is expected to drop below 1 billion square meters for the whole year. The price of new houses has fluctuated and adjusted for 3 years since 2021, and there is still short-term adjustment pressure. The bottoming of house prices still requires policy efforts, especially in the short term, house prices in first-tier cities still face downward pressure. However, with the continuous aggregation of population and resources and the further optimization and adjustment of restrictive policies, policy effects may gradually emerge, and house prices are expected to gradually bottom out and recover.