Heavyweight! Another City's Real Estate Market New Policy Landing in Nanjing | Policy | New Policy
On August 4th, Nanjing released the "Further Optimizing Policy Measures to Promote the Stable and Healthy Development of the Nanjing Real Estate Market", which provided 8 policies, including housing subsidies, housing ticket placement, establishment of a "resettlement housing supermarket", optimization of parking space and garage sales approval procedures, and improvement of the efficiency of pre-sale supervision fund utilization.
The benefit directly related to homebuyers is to further expand the scope of implementing housing subsidies. The new policy points out that the New Six Districts are encouraged to continue to provide a certain proportion of purchase subsidies based on the actual market conditions in the region for those who purchase new commercial housing within the specified period, according to the contract price. Qixia District and Yuhuatai District will provide subsidies for the purchase of new commercial housing after evaluation based on the actual market conditions in their jurisdiction.
As early as 2022, suburban areas such as Liuhe, Lishui, and Gaochun in Nanjing have been implementing a series of housing subsidies. Zhao Qian, senior analyst at Zhongzhi Research Institute, pointed out that in this official document, in addition to emphasizing again that the new six districts can continue to implement housing subsidies, it is the first time that Qixia and Yuhuatai districts can also implement subsidies. This is also a policy proposed by Nanjing after comprehensively studying the homebuyers in various regional markets. Specific implementation details will be introduced in each district in the later stage, and the implementation effect remains to be observed.
In terms of relocation and resettlement, this new policy not only mentions the implementation of housing ticket resettlement for collective land housing expropriation, but also points out the need to establish a unified "resettlement housing supermarket" throughout the city, classify and organize various types of commodity housing and affordable housing available for resettlement in the city, and create a municipal level resettlement housing selection platform for expropriation entities in various districts.
Zhao Qian stated that the housing ticket policy was piloted and distributed in the suburban area of Nanjing in 2022. At the beginning of this year, Nanjing also issued relevant temporary measures for housing ticket resettlement. This policy will continue to expand the scope of housing ticket resettlement for collective land, and continue to release the demand for purchasing houses. At the same time, establishing a unified "resettlement housing supermarket" may have a positive effect on the destocking of the suburban new city area.
It is worth mentioning that Nanjing has also provided favorable policies on the enterprise side, including optimizing the approval of parking space and garage sales, and improving the efficiency of pre-sale supervision fund utilization.
Zhao Qian stated that Nanjing has always been strict in the supervision of pre-sale funds, and there are clear requirements for the return of funds at various nodes. This optimization focuses on the management of unforeseeable expenses for pre-sale funds of commercial housing, allowing eligible pre-sale commercial housing projects to gradually release unforeseeable expenses according to project construction milestones as the project construction progress progresses, which is conducive to improving the efficiency of fund utilization.
However, unlike Zhengzhou, Nanjing did not mention the implementation of "recognizing houses but not loans" in the new policy.
Several local real estate industry insiders told reporters that Nanjing has previously implemented a policy of "recognizing loans but not recognizing houses", which means that after the loan is settled, when buying a house, the loan will still be calculated based on the first property. Compared to the policy of "recognizing a house but not a loan", Nanjing is implementing a more relaxed policy, which requires paying off the loan and having no property under one's name to qualify for the first home.
Specifically, for homebuyers who have not yet repaid their loans, the down payment ratio is 30%, and the mortgage interest rate is 4.1%; There is a set of loans being repaid, with a down payment ratio of 40% and a mortgage interest rate of 4.9%; If there are two sets of loans being repaid, they cannot be borrowed again.
The marketing manager of a top 10 real estate company's Nanjing project stated that the policy was implemented in 2022, and for a period of time, luxury homes in Nanjing sold very well. Thanks to this policy, demand was released.
In fact, since the second half of 2022, Nanjing has successively introduced various policies to continuously relax policies such as purchase restrictions, sales restrictions, and loan restrictions. At the same time, financial and tax incentives have been added, and housing subsidies have been issued to help the real estate market recover. The overall policy relaxation space is relatively limited.
Local real estate analysts in Nanjing believe that there is still room for a reduction in mortgage interest rates in Nanjing. According to data from Beike Research Institute, the mortgage interest rates for first and second homes in second tier cities in July were 3.88% and 4.81%, respectively. The current mortgage interest rates in Nanjing are still higher than this level. However, the policy released by Nanjing this time did not mention a reduction in mortgage interest rates, nor did it provide guidance for adjusting the interest rates of existing loans.
Overall, the interviewees believe that the new real estate policies released in Nanjing are relatively weak. The marketing manager mentioned above candidly stated that the expected policy effect is relatively limited. "The current situation is that the more you go beyond the policy, the less you buy," and "I have never encountered such a situation in my career.".
Since the beginning of this year, the real estate market in Nanjing has experienced a "little spring" in February and March, with over a hundred weekend visiting customers, doubling transactions, and receiving discounts. However, when the backlog of demand was released, it also declined along with the national market.
According to data from the Nanjing Research Institute, in March, the transaction volume of new houses in Nanjing reached a historical high of 7371 units, but it has been decreasing month by month since April. Entering the off-season in July, the number of new housing listings in Nanjing has decreased, coupled with insufficient market demand, resulting in new housing transactions falling below 3000 units throughout the month, setting a new low in recent years.
During the same period, the pressure on new house inventory further increased. As of the end of July, the inventory of new houses in Nanjing was 51538 units, a slight increase of 0.7% compared to the previous month, which is also a new high since February. I love my home. Nanjing Research Institute believes that although the overall increase in inventory is not significant at present, due to the recent slowdown in market transaction pace, the inventory destocking cycle has been significantly extended. According to calculations, it will take 12.9 months for the inventory to fully digest, with an additional 0.5 months compared to the previous period, indicating a greater pressure on destocking.
Industry insiders have pointed out that since the regulatory policies were introduced in mid to late July, the Nanjing market has not shown significant improvement, and there may be a process of digesting policies and improving again in the market.
In the above-mentioned notice, Nanjing pointed out that member units of the Nanjing Leading Group for Promoting the Stable and Healthy Development of the Real Estate Market will optimize policy measures in a timely manner based on the market situation, and make every effort to promote the stable and healthy development of the real estate market. Specific operating rules will be gradually introduced by relevant departments.