Chongqing has stated that policies can be fully implemented, Xiamen has reduced down payments for second homes, and more than 40 new real estate policies have been announced in various regions in August: Zhengzhou recognizes houses but does not recognize loans for real estate | Zhengzhou | Xiamen

Since the meeting of the Central Political Bureau on July 24th proposed to "adjust and optimize real estate policies in a timely manner, and use policy toolboxes according to urban conditions", it has been over a month now. The frequency of optimizing policies in various regions has significantly accelerated. Zhengzhou has implemented the policy of "recognizing houses but not loans", and Xiamen has first lowered the down payment ratio for second homes.

Zhengzhou implements the policy of "recognizing houses but not loans"

On August 3rd, the Housing Security and Real Estate Administration of Zhengzhou City issued a notice on further promoting the stable and healthy development of the real estate market in our city. Zhengzhou clearly implemented the policy of "not recognizing loans when recognizing houses", becoming the first city to make a clear statement after the Ministry of Housing and Urban Rural Development proposed "not recognizing loans when recognizing houses" for personal housing loans. Previously, Zhengzhou implemented a policy of "recognizing loans but not recognizing houses", which means that families who own a house and have already paid off their mortgage for purchasing a house will implement the first home loan policy, which has become relatively relaxed.

A local agent in Zhengzhou told Pengpai News, "Currently, Zhengzhou has implemented the policy of 'recognizing a house but not a loan', which is relatively loose. In many cases, the down payment and loan interest rate can be based on the first home."

It mentioned, "Currently, Zhengzhou only has purchase restrictions within the second ring road, and the government has introduced multiple policies to encourage home purchases, such as encouraging elderly people to come to Zhengzhou for retirement and allowing them to purchase a new house from their families. The combination of government policies and the current loan interest rate is the best time in my 8 years of employment."

At the same time, the manager of a Lianjia store in Zhengzhou stated that after the release of the 15 new policies on the real estate market in Zhengzhou in August, it had a certain impact on the market, especially with a significant increase in trading volume in hot areas.

According to the new policy released by Zhengzhou City, the most concerning policies are undoubtedly the "house recognition but not loan recognition" policy and the suspension of housing sales restrictions. The new policy proposes to provide financial and credit support, implement the policy of "recognizing houses but not loans", and meet the needs of essential and improved housing to a greater extent. At the same time, for those who meet the demand for improved housing and purchase improved housing, their original housing shall be temporarily suspended from the implementation of the Zheng Zheng Ban [2017] No. 58 document, which stipulates that housing purchased after May 3, 2017 within the administrative area of Zhengzhou City shall not be transferred to the market for less than 3 years from the date of obtaining the Real Estate Ownership Certificate.

After the new policy, the real estate market in Zhengzhou experienced a short-term increase in trading volume. According to monitoring data from Zhuge Data Research Center, 1831 second-hand houses were sold in Zhengzhou in the 32nd week, an increase of 61.32% compared to the previous week, and an increase of 1.02% and 3.41% in the 33rd and 34th weeks.

Chen Xiao, Senior Analyst at Zhuge Data Research Center, pointed out that the 15 new policies proposing the cancellation of sales restrictions are of great significance in improving the liquidity of the second-hand housing market, driving up transactions. However, the performance of the new housing market is not significant. In the 33rd week, new housing transactions in Zhengzhou showed an upward trend, with 1501 units sold, an increase of 17.45% compared to the previous week, and another decline in the 34th week.

Xiamen lowers the down payment ratio for second homes

According to CCTV News, several cities including Fuzhou, Xiamen, Chengdu, and Shenyang plan to adjust and optimize their purchase restriction policies in the near future, reducing the lower limit of down payment for second homes. Xi'an, Shaanxi is also studying the adjustment of personal housing loan policies, aiming to reduce the down payment ratio of personal housing loans and the lower limit of loan interest rate policies.

Among them, Securities Daily confirmed from some banks in Xiamen that since August 16th, the down payment ratio for second homes in Xiamen has decreased from 50% to 40%; The lower limit of the interest rate for commercial loans for second homes has also been adjusted from an 80 basis point increase in the loan market quotation rate to a 60 basis point increase, that is, the interest rate for second home loans has been reduced from the original 5% to 4.8%.

According to the Xiamen Evening News, recently, the Xiamen Housing Provident Fund Center issued a notice on adjusting the down payment ratio of housing provident fund loans, clarifying that starting from the 16th of this month, if depositors purchase a house in Xiamen that meets the conditions for housing provident fund loans and apply for housing provident fund loans, the down payment ratio will be adjusted in accordance with the Xiamen commercial housing loan down payment ratio policy adjustment. Compared to the original policy, the main change this time is that for employees who have not paid off a commercial housing loan and have no housing or a house in the city, the down payment ratio will be reduced from 50% to 40% when applying for housing provident fund loans.

In August, there were over 40 new policies in various real estate markets across the country

It can be seen that after the July 24th Politburo meeting, the frequency of policy implementation in various regions has slightly increased. According to monitoring data from China Index Research Institute, as of August 22nd, more than 40 policies have been introduced in various regions in August, which is higher than the monthly average from May to July.

According to the data of the Middle Index Research Institute, some second tier cities have optimized the purchase restriction and sales restriction policies, reduced the down payment ratio and housing loan interest rate. For example, Xianlin Street, Yuhang District, Hangzhou is included in the scope of differentiated purchase restriction, and non registered residence residents can buy houses locally if they meet the social security requirements of one month; Zhengzhou has lifted the restriction on sales of those who have not been listed or transferred for less than 3 years from the date of obtaining the Real Estate Ownership Certificate.

According to Pengpai News, after the Central Political Bureau meeting and the Ministry of Housing and Urban Rural Development stated that they have further implemented various policy measures, many cities are studying policy directions based on their own situations. According to sources from a second tier city, the city it is located in is currently studying real estate policies in accordance with the requirements of the Provincial Department of Housing and Urban Rural Development. "The province has taken out 20 policy tools, allowing each city to choose from the toolbox according to its own situation. Policy tools include land supply, finance, housing provident fund, pre-sale, housing purchase subsidies, etc. In the future, our city's policies will be introduced from both the city and district levels. At the same time, we will also analyze the situation of the real estate market's urbanization and dynamically adjust the restricted purchase areas according to the situation."

At the same time, regarding the policy measures mentioned by Minister of Housing and Urban Rural Development Ni Hong at the meeting, such as "recognizing a house without recognizing a loan" for personal housing loans, officials from second tier city authorities stated that after the meeting of the Ministry of Housing and Urban Rural Development, we took the initiative to communicate with local branches of the People's Bank of China, but still need to wait for further feedback from the People's Bank of China.

In addition, according to the WeChat official account "Chongqing Release", on August 21, Chongqing held a special conference on promoting urban construction and real estate development. At the meeting, Hu Henghua, Deputy Secretary of the Chongqing Municipal Party Committee and Mayor, emphasized the need to closely monitor the "golden nine silver ten" policy, further focus on problems, overcome difficulties, and effectively promote various work. Efforts should be made to address policy issues, study and implement policy measures that are conducive to the stable and healthy development of the real estate market, and ensure that relevant policies are implemented as soon as possible.

The introduction of policies in first tier cities is relatively cautious

It is worth mentioning that at the end of July this year, the housing and construction departments in first tier cities successively expressed support for the demand for rigid and improved housing, promoting the stable and healthy development of the real estate market.

Four first tier cities have also responded to questions about how various regions will support residents' demand for rigid and improved housing, and whether they will implement the policy of recognizing housing but not loans.

According to feedback from the Shenzhen Housing and Urban Rural Development Bureau on August 10th, "there are currently no relevant policy adjustments, and if any, they will be announced to the public as soon as possible.". The Guangzhou Housing and Urban Rural Development Bureau replied on August 7th that the relevant policies are being studied and will be subject to publication on the official website. On August 4th, the Beijing Municipal Commission of Housing and Urban Rural Development replied that it is actively promoting the detailed rules. Specific documents and adjustments can be found on the official website of the Beijing Municipal Commission of Housing and Urban Rural Development. On August 3rd, the Shanghai Housing Management Bureau responded that it is currently studying the optimization plan for the renovation of the "two old and one village", and credit policies suggest paying attention to the central bank's policies.

Chen Wenjing pointed out that currently, policies for first tier cities have not been implemented and may still be in the research and formulation stage. For first tier cities, on the one hand, the signal of policy implementation is significant, and it will also serve as a benchmark for the real estate policies of other cities; On the other hand, the demand for housing in first tier cities is still relatively strong, and the degree of policy optimization directly affects market sentiment. Overall, policy adjustments in first tier cities are more cautious.

The downward pressure on the real estate market in first tier cities is constantly increasing. According to data from the China Index Research Institute, the transaction area of commercial residential properties in first tier cities decreased by about 10% month on month in July. Since August, the weekly average transaction area has decreased by nearly 30% compared to the same period last year, a decrease of over 20%. The expectation for policy optimization in first tier cities is further strengthened.

Chen Wenjing mentioned that in the short term, the direction of policy optimization in first tier cities may include optimizing "housing and loan recognition", reducing the down payment ratio for second homes, optimizing purchase restrictions in some regions, reducing transaction taxes and fees, and adjusting the standards for identifying ordinary residential properties. It is expected to be optimized and adjusted in conjunction with population and talent policies. If substantive policies are implemented as soon as possible, the activity of the real estate market in first tier cities is expected to increase, which will have a positive impact on the overall market sentiment and stabilize market expectations. If the pace of policy implementation in first tier cities is slow or the intensity is small, it is expected that the market expectation will further weaken, and the short-term adjustment trend of the real estate market may continue.

Chen Xiao mentioned that for a long time, the real estate policies in first tier cities have been under strict control, but the demand is huge. If the degree of loosening control is not good, it may cause significant market fluctuations and affect the stable development of the real estate market. Therefore, the formulation of policies is more cautious and rigorous. However, the implementation of specific policies is only a matter of time, and the approach adopted may lean towards regional progression.