Source: Gelonghui
If you buy a new home, you can settle in; if you buy a house, you don't accept your first loan...
The property market continues to be favorable.
Today, Wuhan introduced the “New Ten Rules” to optimize the property market, which covers initial certification, housing purchase subsidies, provident funds, consumer vouchers, etc., and is expected to be implemented within May.
With the intensive introduction of the “addition and subtraction method” of property market policies, it has also sent a signal of relaxation to the market. Since late April, A-share real estate stocks have begun to fluctuate and heat up. Currently, the cumulative increase is over 10%.
Wuhan Property Market New Deal
On the morning of May 6, the official website of the Wuhan Housing Security and Housing Administration published the “Notice on Further Optimizing and Improving Policies and Measures to Promote the Stable and Healthy Development of the Real Estate Market in Our City”.
The “Notice” proposes relevant policies and measures in 10 areas, including strengthening housing provident fund loan measures, adjusting the criteria for determining the number of first home loan units for households, implementing a new “selling old and buying new” transaction model, and optimizing the “white list” management of real estate development enterprises, to promote the steady recovery and healthy development of the real estate market.
Among them, with regard to housing provident fund loans, the criteria for determining the number of housing provident fund personal housing loan units have been optimized, and “the first loan is not recognized when approving a home” has been implemented. The conditions for the use of offsite loans will be adjusted in stages, and restrictions on domicile and place of deposit for housing provident fund loans will be lifted.
Regarding vouchers for the purchase of a home, before December 31, 2024, buyers can apply for 5 to 100,000 yuan of vouchers through designated channels. The vouchers directly deduct the total price of the house.
Regarding the optimization of home purchase and settlement procedures, families that purchase newly built commercial housing in Wuhan and do not yet have the conditions to apply for a home ownership certificate (real estate certificate) can apply for early settlement procedures in their jurisdiction based on legal and stable residence documents such as a registered “Commercial Housing Sales Contract” and payment documents, and personal certification commitments.
Furthermore, this time, Wuhan also proposed the implementation of a new “sell old buy new” transaction model. Encourage real estate development companies, real estate brokerage agencies, and buyers to work together to “sell first” old houses and “buy better” new homes.
At the same time, it will also optimize the management of the “white list” of real estate development companies. Strengthen the coordination of development loan financing for real estate enterprises, and make full loans for compliant real estate projects that meet the “white list” conditions.
Is the property market gradually recovering?
Recently, purchase restrictions in the property market have been continuously loosened, and the New Deal continues to be strengthened.
Since April, policies on the property market have continued one after another. The central bank's quarterly meeting at the beginning of the month indicated that it will accurately implement differentiated housing credit policies in line with city policies to better support rigid and improved housing needs. Strengthen financial support for the “market+guarantee” housing supply system and focus on constructing a new model of real estate development.
On April 30, the Political Bureau of the Central Committee held a meeting and also mentioned that in line with the new changes in the relationship between supply and demand in the real estate market and the people's new expectations for high-quality housing, it is necessary to coordinate research on policies and measures to absorb the stock of real estate and optimize incremental housing, and urgently construct a new model of real estate development to promote high-quality real estate development.
Meanwhile, news of the loosening of the property market continued to circulate in many parts of the country during this period.
According to statistics from the Central Plains Research Center, as of April 29, only 7 of the country's 29 megacities had not lifted their purchase restrictions, including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, and Xi'an. The other 22 cities began to “lift restrictions” one after another at the end of 2022.
However, after the more core cities, including Chengdu and Changsha, have completely lifted purchase restrictions one after another, there are rumors that the market expects first-tier cities to introduce similar policies.
No, before the “May 1st” holiday, the Beijing and Tianjin property market policies were expanded on the same day.
On April 30, the Beijing Municipal Housing and Construction Commission issued the “Notice on Optimizing and Adjusting the City's Housing Purchase Restriction Policy”. This time, Beijing is mainly easing purchase restrictions outside the 5th Ring Road, allowing multiple subscriptions to purchase one housing unit.
It is worth mentioning that this is the first time that Beijing's housing purchase restriction policy, which has been implemented for 13 years since 2011, has been adjusted.
On the same day, Tianjin issued the “Notice on Further Optimizing Real Estate Regulation and Control Policies”, which clearly states that Beijing-Tianjin-Hebei have the same right to buy homes. Registered residents of Beijing City or Hebei Province and those employed in Beijing City or Hebei Province who buy housing in Tianjin enjoy the city's housing purchase policy.
In response, Zhang Dawei, chief analyst of Central Plains Real Estate, analyzed that the bailout policy has once again reached its peak. Since April, property markets across the country have continued to move, and policies to reduce the burden on demand for home buyers and relax purchase restrictions to increase the number of buyers have also continued to be introduced. He said that as long as the market is not stable, cities such as Beijing will continue to introduce policies.
In addition to this, foreign investment is also shifting to more real estate in China.
Earlier, John Lam, an analyst in charge of real estate research at UBS Greater China, also said that after experiencing adjustments, the Chinese real estate market will gradually recover with the government's boosting measures.
John Lam said that the cycle of falling housing prices over the past three years has caused people to delay purchases. Once housing prices stabilize, suppressed demand will make a comeback.