[The Epoch Times, June 23, 2022](The Epoch Times reporter Li Jing comprehensive report) China’s real estate has fallen into a cold winter, and many governments have resorted to rescue the market. In at least 15 cities in China, demolition and demolition are no longer compensated in cash, but instead are issued with house receipts, forcing the demolition households to buy houses. There are also local governments that have issued red-headed documents and issued sales targets to the grassroots.
Qingdao West Coast New Area issued a red-headed document to issue sales indicators
Recently, a property market news has attracted public attention. The Xuejiadao Sub-district Office, West Coast New District, Qingdao City, Shandong Province issued a notice entitled “Notice on Promoting Residents to Buy New Commercial Housing”.
The notice requires, “In order to implement the deployment of the superiors, all communities and joint-stock economic cooperatives actively publicize and mobilize eligible residents to purchase new commercial housing, and do a good job in surveying the willingness to buy houses, and organize group purchases of new commercial housing.”
The article also mentioned: “At the end of June, each cooperative has completed no less than 2 online signatures” and “this work will be included in the 2022 annual work assessment”. Many netizens questioned this: Are “flicker” buying a house included in the assessment?
The staff of the Xuejiadao Sub-district Office told “Tianmu News” that there is indeed such a thing, and said that the “superior deployment” mentioned in the notice refers to the “Qingdao West Coast New District Management Committee Office” and the “Qingdao Huangdao District Government”. A red-headed document jointly issued by the Office”.
According to a staff member of the Zhujiang Road community within the jurisdiction of Xuejiadao Sub-district, “If (the work) is not completed, our community will deduct points, and the community secretary may also be deducted money.”
In many places in the mainland, the demolition is not compensated in cash and the “room ticket” is issued
Since March this year, 15 cities in China have successively introduced housing ticket placement policies, including Xinyang, Yibin, Changshu, Jiangyin, Wenzhou, Lishui District of Nanjing, Zhengzhou and other cities.
Zhengzhou announced on the 20th that it will issue house tickets to those whose houses are expropriated, and give 8% of the compensation amount as a reward, and it will not be included in the family purchase limit.
The so-called house ticket resettlement means that the expropriator converts the house planned to be resettled into currency according to the policy of currency resettlement and property rights exchange, and issues it to the expropriated person in the form of a house ticket. A housing resettlement method for real estate development enterprises to purchase commercial housing (including residential and non-residential). If the expropriated person chooses house ticket resettlement, it will be regarded as giving up the exchange of house property rights.
It should be noted that the period of use of the room ticket is calculated from the date of issuance of the room ticket, and the maximum period is not more than 12 months.
“First Financial” reported that the house ticket is not an innovative method of this round of property market regulation. In 2015, some cities introduced the house ticket policy in the demolition and resettlement of shanty towns. Under the tide of destocking in 2016, many cities followed up and adopted this policy. Since then, in 2018, with the monetization and resettlement policy of shanty town reform, the housing market gradually moved away. Tickets are also gradually closing.
Netizens questioned that, in fact, the price of a new house in the local area may be much higher than the compensation price for the demolition of the old house. The demolition households cannot get the compensation and can only use the house ticket to buy a house, and they have to pay a huge price difference.
“In the past, demolition was either in-kind compensation or monetary compensation, but now we have developed white strips to compensate.” “You can only buy a house with white strips. The house price is 15,000 yuan, and you can find a bank loan of 1 million yuan by yourself.”
Since 2022, in the context of the continuous decline in real estate, room ticket compensation has been introduced again. Zhongxin Finance described the re-introduction of the house ticket measures as “Welcome back to the 1970s?!”, and pointed out that “many netizens directly said that they had the feeling of traveling through the last century.”
Henan real estate giant’s debt is overwhelmed by wheat and garlic can be exchanged
In order to activate the property market, all kinds of price promotions have recently appeared in various places. Recently, two “alternative” posters in Henan County have been circulating on the Internet: in the Jianye Riverside House in Minquan County, Shangqiu, Henan Province, you can “2 yuan/catties, wheat for house replacement”; in Jianye City, Qi County, Kaifeng City, Henan Province , you can “5 yuan / catty, garlic change room”.
CCRE is a leading local real estate company in Henan. The real estate company launched a promotion in the riverside house project in Minquan County, buying wheat at a price higher than the market price of 2 yuan per kilogram as a down payment for a house, which can offset up to 160,000 yuan, or 80,000 kilograms of wheat.
The financial report data shows that as of December 31, 2021, CCRE’s cash and cash equivalents were about 5.902 billion yuan, and its total liabilities were 133.063 billion yuan, of which short-term interest-bearing liabilities totaled 6.76 billion yuan. The available funds cannot cover short-term debts. .
Under the pressure of debt, real estate companies cut prices and shipped many places to issue “decrease limit orders”
A few days ago, the four departments of the Fuzhou Pingtan Comprehensive Experimental Zone jointly issued the “Notice on Further Regulating the Order of the Commercial Housing Sales Market in the Experimental Zone”. The notice requires that the selling price of commercial housing of all real estate enterprises shall not exceed 15% of the record price.
Fuzhou Pingtan Comprehensive Experimental Zone is only a microcosm. According to the Financial Associated Press, since August 2021, more than 20 cities have taken corresponding measures to significantly reduce the prices of real estate companies, including Zhangjiakou, Yueyang, Guilin, Kunming, Shenyang, Jiangyin, Zhuzhou, Tangshan and other cities.
These cities either directly issued “decrease limit orders”, or held symposiums to prevent “malicious price reductions” by real estate companies, or conducted interviews with relevant price-cutting real estate companies, requiring house prices to fall by no more than 15% or 10%.
Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said that with the cooling pressure of the market transmitted to real estate companies, the sales pace of many projects has slowed down, and the speed of capital return has slowed down, resulting in various price reductions.
According to CRIC data, the overall trading performance of the top 100 real estate companies from January to May fell by 52.3% year-on-year. Among them, the sales in May fell by 59.4%.
In addition, in May this year, the financing scale of Chinese real estate companies dropped sharply, and the monthly financing scale hit the third lowest since 2019. At the same time, July and August will enter the second peak debt repayment period of the year.
Responsible editor: Hu Yulong#