[Epoch Times, November 01, 2022](Comprehensive report by Epoch Times reporter Liu Yi) Shenzhen recently released the “Shenzhen 2022 Housing Rental Reference Price”. Some commentators said that the introduction of housing rental reference prices in Shenzhen is the final nail in the coffin of Shenzhen’s property market, which has lost its basic investment value.
On October 28, the Shenzhen Municipal Bureau of Housing and Urban-Rural Development of the Communist Party of China released the notice of the Shenzhen Real Estate and Urban Construction and Development Research Center on the release of the “Shenzhen 2022 Housing Rental Reference Price” on its official website. The notice said it was to “improve the transparency of rental market prices” and provided a platform for querying rental reference prices.
According to Shenzhen News, the rental reference price released this time covers all districts in the city (including Dapeng New District), including 4,319 communities (including 3,786 commercial housing properties, 318 unified building properties, and 215 commercial apartment properties) , 2,042 private houses in urban villages, 4,500 supporting dormitories in industrial parks, and 6,702 industrial parks.
According to the “Times Weekly” report, the rental reference price of various types of housing in Shenzhen is between 29-154 yuan (RMB, the same below) / square meter per month. By division. The rental reference price in Nanshan is the highest. The rental reference price of commercial housing is 109 yuan/square meter/month, commercial apartment is 154 yuan/square meter/month, and Tongjian Building is 73 yuan/square meter/month. In relatively remote areas such as Guangming, Longgang, Pingshan, and Dapeng, the reference price of commercial housing rental is 40-51 yuan / square meter per month. Among them, the market prices of Nanshan and Futian are slightly higher than the reference price, Longgang is flat, and the market prices of Luohu, Yantian and Baoan are slightly lower than the reference price.
“Daily Economic News” quoted Cheng Cheng, a tenant in Shenzhen, as saying: “If I follow this standard, where I live now, I can save about 1,000 yuan per month.”
Regarding whether the reference price of house rental is binding on the market, Li Yujia, chief researcher of the Housing Policy Research Center of Guangdong Urban Planning Institute, said that the biggest role of the reference price of rent is to set the price of affordable rental housing, and to set constraints on the rent of rental housing in the market. Not strong.
Ai Zhenqiang, chief researcher of Mingyuan Real Estate Research Institute, believes: “This measure may cause a certain blow to second-hand landlords, especially the business model of renting out after renovation, because the price of renovated apartments is higher than that of renovated apartments. There has generally been an increase of more than 50% before, and the space for profiting from the rental difference may be further narrowed in the future.”
Some netizens also disagree with Shenzhen’s release of housing rental reference prices.
Netizen “Xiao Yuan” said: “It’s boring, 500,000 decorations and 100,000 decorations, is the rent the same price?”
Netizen “zau_6z7” also said: “Can the second floor and the 20th floor be the same price?”
Guangdong netizen “Past Events” said: “If there is no binding force, don’t waste manpower and material resources in research.” Guangdong netizen “Mo Mo” said: “It’s useless to do something.”
Some netizens also said that the authorities are interfering in the market by doing so, which is contradictory. Netizen “a9ly2jo” said: “You guys are clamoring to be ‘market-oriented’ again, and here you are looking forward to ‘reference price’~ Isn’t this a contradiction?”
Financial commentators believe that the Shenzhen authorities have done so as a blow to the Shenzhen real estate market. Commentator Wang Jian said in his We-Media program on October 31 that the measure basically put the last nail in the coffin of Shenzhen’s real estate market.
Wang Jian said that the two administrative measures, the reference price of second-hand houses and the reference price of rent, have further destroyed the mechanism of the real estate market. The government directly extended its hand into the market and directly distorted the market price. The government used administrative means to suppress the market price, and the market price could not be Reflecting the situation of market supply and demand, market participants cannot predict their investment returns, because the government changes the reference price at any time, and as a result, participants finally leave the market. These two measures mean that the Shenzhen real estate market has lost its basic investment value. .
Wang Jian further said that if this policy is extended to the whole country, it means that the Chinese real estate market will collapse.
In February 2021, the Shenzhen authorities were the first in mainland China to release the transaction reference price of second-hand housing in residential communities, which was linked to housing loans, followed by some cities in mainland China. The administrative measure hit the second-hand housing market hard.
Responsible editor: Lin Congwen#