[Epoch Times on August 1, 2021](Epoch Times reporter Yi Fan comprehensive report) In order to prevent the property market from overheating, Shanghai has successively introduced a series of measures in July to suppress the local real estate market.
According to the Economic Observer website, in order to crack down on the illegal entry of credit funds into the property market, the Shanghai Banking and Insurance Regulatory Bureau issued seven fines on July 12 and then issued 17 fines on the 27th. A total of 24 fines were issued in July, and several financial institutions, including the top five banks, were fined a total of 18.9 million yuan ($2.926 million).
The fine disclosed on July 27 showed that China Construction Bank was fined 4.1 million yuan in all its 8 branches for multiple violations. The branches of the Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of Communications in the Shanghai Free Trade Zone, as well as the Shanghai Pudong Branch of Bank of China and the Pudong Branch of Shanghai Rural Commercial Bank, were fined 500,000 yuan (77,000 US dollars) to 1.5 million yuan (232,000 US dollars).
Shanghai Waigaoqiao Group Finance Co., Ltd. was fined 500,000 yuan for illegally flowing into the real estate market with part of the working capital loan, and the main responsible person was warned.
The seven fines issued on July 12 also involved violations of real estate financing. Bank of Shanghai, Agricultural Development Bank, and Postal Savings Bank were fined 4.6 million yuan (712,000 U.S. dollars), 1.5 million yuan (232,000 U.S. dollars), and 3.7 million yuan (57.3 million U.S. dollars). Ten thousand dollars). The relevant persons responsible for the Agricultural Development Bank were also warned.
On July 23, Shanghai issued two successive property market regulation policies within one day to curb speculation.
On the same day, the Shanghai Headquarters of the People’s Bank of China held a meeting with banks in Shanghai to determine the increase in mortgage interest rates. Shanghai’s first mortgage interest rate will be raised from 4.65% to 5%, and the second mortgage interest rate will be raised from 5.25% to 5.7%. The new regulations have been implemented on July 24.
On the same day, the Shanghai Municipal Housing Management Bureau issued a document to modify the housing gift system: From the 24th, if the housing is transferred by donation, the recipient shall comply with the Shanghai housing purchase restriction policy, and the housing shall still be counted as the number of housing units owned by the donor within five years . This means that the practice of wanting to make oneself without a house through a gift, which is conducive to buying a house, is no longer valid.
Earlier in July, Shanghai’s second-hand housing market also experienced a major cleaning.
On July 9th, the Shanghai Municipal Housing Management Bureau requested that the price information of second-hand housing be verified on the basis of the verification of new housing listings. Price verification is implemented by the transaction management department. After the 19th, listings that have not passed the verification will not be released to the public.
However, the definition of the “real price” by the transaction management department is far below the landlord’s expectations. The Shanghai Daily Economic News reported that, taking the local Meiyuan Sanjiefang as an example, the actual average transaction price in the community was around 200,000 yuan (31,000 US dollars) per square meter, but the verified price was only 140,000 per square meter- 150,000 yuan (22,000-23,000 US dollars).
With the advancement of this policy, listings that failed the price verification were taken off the shelves in large numbers. Shanghai Jiemian News reported on July 21 that the real estate agency Shanghai Lianjia’s official website removed more than 10,000 homes, the external listings dropped from more than 32,000 to more than 17,000 at present, and Centaline Property’s official website removed nearly 20,000. There are more than 1 sets of sources, only more than 13,000 sets of sources are displayed.
At the same time, the large psychological gap between buyers and sellers led to a sharp drop in transaction volume. The landlord was unwilling to lower the price, the client was unwilling to increase the money, and both sides became wait-and-see.
At the beginning of March this year, Shanghai also introduced a “five-year sales restriction” measure.
On the evening of March 3, the Shanghai Housing and Urban-Rural Development Committee, the Planning and Natural Resources Bureau, and the Shanghai Housing Management Bureau jointly issued an “opinion” on promoting the development of the housing market. In this opinion, the policy that “newly built commercial housing purchased according to the priority purchase policy can only be transferred after 5 years after the signing and filing of the house purchase contract” is of particular concern. Its “priority policy” refers to Shanghai’s point system for purchases of houses without houses.
The opinions also include the policy of “limiting price bidding” and “strengthening intermediary control”.
The housing prices of Shanghai, Shenzhen, and Beijing have always ranked among the top three in the country, and are also in the top ten in the global housing price list, higher than Paris, London and Tokyo, and slightly lower than New York.
The big Internet Finance and Economics once said in his self-media program that real estate is the engine of China’s economy. If there is a full-scale high housing price plunge, it will trigger a continuous wave of corporate bankruptcies, not only the wealth of residents will be wiped out, but China’s financial system will also collapse with it. @
Editor in charge: Shao Yi
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