[Epoch Times, July 5, 2022](Comprehensive report by Epoch Times reporter Xia Song) Tangshan City, Hebei Province has once again become a news hotspot. If the price is not raised, the luxury house is sold at a loss. Tonight (5th), the authorities launched a new policy of “one-person home buying and family assistance”, which caused heated discussions.
In addition, Zhongshan City, Guangdong Province recently issued a housing market “decrease limit order”, stipulating that the interval between each adjustment of the sales price of new residential buildings shall not be less than 3 months, and the decline shall not exceed 5%. In the past two months, local governments have eased restrictions and thrown out various stimulus policies, but the property market has not rebounded quickly.
Tangshan City’s housing prices fell to the bottom, and the hot search issued a new loan policy to stir up controversy
The topic of “Tangshan housing prices fell to the bottom” appeared on the hot search on July 5. According to comprehensive Lu media reports, many Tangshan investors are selling their properties, and second-hand housing is gradually increasing. However, affected by the low temperature of the new housing market, the second-hand housing market cannot be called high prices, and some luxury houses are even sold at a loss.
Lu media Sina Finance reported on the 5th that earlier this year, Tangshan released a package of stimulus policies for the property market, including the cancellation of restrictions on the purchase and sale of commercial housing, adjustment of commercial loan policies for house purchases, and adjustment of provident fund loan policies, etc., while the local property market has continued to decline for several months. .
According to the report, Dong Wang Li, a real estate agency in Tangshan, said that the number of second-hand houses he has handled has increased significantly recently, and his keen sense of smell brought by years of real estate transactions tells him that some investors are cashing out. Many owners are in a state of losing money to sell, just the difference between losing more and losing less.
In addition, the official WeChat account of the Tangshan Housing Provident Fund Management Center issued a message on the 5th saying that starting from July 15, a new policy of buying a house and repaying a loan will be launched: “One person buys a house and the whole family helps.” The news immediately sparked heated discussions among netizens.
Policy regulations: In Tangshan area, if a single employee buys a house with a loan, their parents can provide loan repayment assistance as co-payers; if a married employee purchases a house with a loan, both parents can provide loan repayment assistance as co-payers. Parents who take out a loan to buy a house, a daughter or a married child, the husband and wife can provide loan repayment assistance as co-payers.
The netizen “Leaves walk with the wind and rain” said, “This is no longer cutting leeks, but pulling leeks.” Netizen “professional cat litter 0325” said, “This is not about emptying out six wallets, this is about emptying out The wallet of the nine clans, one person buys a house and the whole family is in debt.”
Netizen “Bill Lao Niu” said, “Don’t panic, if the parents help to repay the loan is not enough, then let the children continue to repay the loan, so that the parents + house slave + children continue to repay the loan, and the three generations can finally buy a nest.”
Netizen “luosi2007” said, “Only selling houses can’t keep up with the supporting facilities. Roads, schools, heating, gas, and property are the topics that Tangshan asks most about politics. After buying a house, you have to go to defend your rights. No amount of stimulus policies will save the market.”
Sina Finance reported that in May this year, the average price of new commercial housing in Tangshan was 8,606 yuan/square meter, down 0.42% from the previous month; the average transaction price of second-hand housing was 11,027 yuan/square meter, down 0.84% from the previous month and down 6.65% from the same period last year. fell.
According to the report, netizens lamented that “most cities in the country are not much different.”
Zhongshan City issued a “decrease limit order” to limit the decline of house prices by 5% each time
As netizens said, there are almost few cities in the country. A few days ago, Zhongshan City, Guangdong Province issued a “decrease limit order” for the housing market, which was ridiculed by the outside world as “setting a price limit for housing prices”.
The Zhongshan Municipal Bureau of Housing and Urban-Rural Development and the Development and Reform Bureau jointly issued the “Notice on Further Optimizing the Sales Price Declaration of Newly-built Commercial Housing” on the 4th.
The notice stated that the price of new commercial housing must be declared to the Zhongshan Municipal Government. There are two types of declarations: “initial declaration” and “price adjustment”. When applying for a pre-sale permit or applying for the first registration of real estate, the builder should declare the “first sale price” first; if it wants to adjust the price in the future, it must declare the price adjustment through the trading platform.
The notice states that once the sales price of commercial housing is declared, the interval between each adjustment shall be no less than 3 months, and the reduction rate shall not exceed 5% of the previous sales price. The fluctuation range of the actual sales price shall not exceed 15% of the declared price.
Deng Haozhi, a mainland real estate economist, said in a blog post, “Zhongshan’s new regulations have opened up a channel for further price reductions. From the current situation, Zhongshan’s housing prices should be further down. The drop may not be much.”
However, some netizens did not agree with his point of view, saying that “similar to the circuit breaker mechanism in 2015, the fall was faster.” Some netizens replied, “Now investing in real estate, buying and selling are all irrational, except for rigidity.”
The CCP’s intensive stimulus has not improved, and it is difficult for the real estate to underpin the economy
Over the past 20 years, stimulating real estate has appeared to be the party’s tried-and-true means of addressing economic woes. The authorities said at the end of April that they “support local governments to improve real estate policies based on local conditions.” Governments around the world have loosened restrictions and thrown out various stimulus policies. However, this round of intensive stimulus has not seen any improvement, and it may be difficult to underpin the Chinese economy.
Land media “Securities Times” reported on April 21 this year that the Shanghai E-House Research Institute report showed that the poor transaction in March led to the continuous extension of the inventory depletion cycle in Baicheng, which jumped from 19.49 months at the end of February 2022 to 22.70. moon. Among them, the third- and fourth-tier cities reached 25.83 months, exceeding the high of the epidemic period (25.18 months) and hitting a new high.
The detoxification cycle of real estate refers to the sales cycle of commercial housing, and its role is to reflect the degree of housing supply and demand. A short detoxification cycle indicates a shortage of housing supply, and a long detoxification cycle indicates an oversupply.
According to a report by Lu media “First Financial” on April 29, the Political Bureau of the Central Committee of the Communist Party of China emphasized at the meeting that day to effectively manage and control key risks, and adhere to the positioning that the house is for living, not for speculation. We will improve real estate policies and promote the steady and healthy development of the real estate market.
However, two months later, the property market did not rebound as quickly as the outside world imagined, leading the Chinese economy out of the predicament.
Shanghai E-House Research Institute calculated that the overall price of new commercial housing in 70 cities decreased by 0.2% month-on-month in May; second-hand housing prices fell even more.
The British Broadcasting Corporation (BBC) reported on July 5 that Yu Liang, chairman of Vanke’s board of directors, said at the shareholders’ meeting on June 28 that in the first quarter of 2022, the sales of commercial housing in first- and second-tier cities fell by 36% year-on-year. In April, the situation was even worse. Oops, the year-on-year decline in commercial housing sales in first- and second-tier cities expanded to 59%, and “the market has bottomed out.”
Hu Rong, assistant professor of real estate and finance at the Business School of the Chinese University of Hong Kong, told BBC Chinese that the important background of the current policy: on the one hand, the overall consumer demand of residents is sluggish, and the sales of real estate are particularly weak, thus dragging down the overall economic growth; The various purchase and loan restrictions previously introduced to limit real estate speculation are still in effect.
She said that real estate prices are still relatively high, while China’s overall economic growth has slowed down, and the epidemic has led to a tightening of the job market, and wages or investment income have been negatively affected to some extent. People’s confidence in real estate investment has fallen, and the burden of pressure has increased. At present, the effect of this round of stimulus is not obvious.
Responsible editor: Gao Jing#