What signals are released?, Continuous adjustment and optimization of real estate policies for housing | loans | policies

Extending the implementation period of the Baojiao Building Loan Support Plan, guiding banks to adjust the interest rates of existing personal housing loans, and further implementing the policy of "not recognizing loans but recognizing houses"... Recently, relevant departments have made frequent statements, and real estate policies continue to be optimized and adjusted. What signals have these new policies released? What kind of impact will it bring?

Optimize policy support for rigid and improving demand

"The down payment ratio for a second home has been reduced to 40%, the interest rate has been lowered to 4.8%, and our couple's housing provident fund loan amount has been increased to 1 million yuan, with a tax refund of 40000 yuan..." Mr. Zhao, a Nanjing resident who recently purchased a more than 120 square meter improved housing, gave reporters a detailed list of many policy benefits he has enjoyed.

Since the beginning of this year, various regions have continuously optimized their real estate regulation policies, from optimizing purchase and sales restrictions to lowering the minimum down payment ratio, from issuing housing purchase subsidies to strengthening housing provident fund policy support, from purchasing deed tax subsidies to transferring second-hand houses with collateral... Real estate policies have been continuously optimized and adjusted, effectively supporting the demand for rigid and improved housing.

This is also reflected in credit data: in the first half of the year, personal housing loans totaling 3.5 trillion yuan were disbursed, exceeding 510 billion yuan more than the same period last year; The personal housing loan interest rate in June was 4.11%, a year-on-year decrease of 0.51 percentage points.

In the medium to long term, China's real estate market is shifting from high-speed development in the past to stable development. At the Political Bureau meeting of the Communist Party of China Central Committee held on July 24th, it was proposed to adapt to the new situation of significant changes in the supply and demand relationship of China's real estate market, adjust and optimize real estate policies in a timely manner, and make good use of policy toolboxes based on urban policies.

Recently, the Ministry of Housing and Urban Rural Development has stated that it will further implement policies and measures such as "not having to subscribe for housing loans" for personal housing loans; The National Development and Reform Commission stated that it is necessary to strengthen policy reserves in better meeting the rigid and improved housing needs of residents.

"Considering that the supply and demand relationship in China's real estate market has undergone profound changes, there is marginal optimization space for the policies introduced in the past during the long-term overheated stage of the market," said Zou Lan, Director of the Monetary Policy Department of the People's Bank of China.

The People's Bank of China recently made it clear during its deployment for the second half of the year that differentiated housing credit policies will be implemented precisely based on urban policies, and personal housing loan interest rates and down payment ratios will continue to be guided downwards to better meet the rigid and improved housing needs of residents. Guide commercial banks to lawfully and orderly adjust the interest rates of existing personal housing loans.

"Taking practical measures from the demand side as soon as possible to better meet the demand for rigid and improved housing can help stabilize and boost residents' housing consumption." Dong Ximiao, Chief Researcher of Zhaolian Finance, said that relevant departments have put forward clearer requirements, responded to market calls, and sent a positive signal.

The implementation of policies to promote water testing in some areas

Recently, policy directions such as adjusting the interest rates of existing personal housing loans, "not recognizing loans when recognizing a house," and improving tax and fee reductions for purchasing affordable housing have become the focus of market attention. Under the encouragement and guidance of relevant departments, some places and institutions have actively responded.

First tier cities such as Beijing, Shenzhen, Guangzhou, and Shanghai have successively voiced their support for residents' demand for rigid and improved housing based on their own real estate situation. Henan Zhengzhou, Guangxi Wuzhou and other cities have optimized the standards for identifying housing units, and multiple cities in Jiangsu, such as Zhenjiang, Yangzhou, and Suzhou, have introduced tax incentives for purchasing houses

Homebuyers are also full of expectations for the adjustment of real estate financial policies. A senior agent of a Macalline iHome store in the Jinqiao area of Pudong New Area, Shanghai, told reporters that there has been a significant increase in customers coming to the store to inquire about policies recently. They are generally particularly concerned about policies that reduce down payment ratios and loan interest rates.

Yan Yuejin, the research director of E-house Research Institute, believes that "buying a house without buying a loan" is beneficial for activating the housing replacement chain and activating market transactions. Lowering the interest rate of some existing housing loans can help reduce the phenomenon of residents flocking to make early repayments and engaging in illegal loan transfers, and boost their willingness and ability to expand consumption.

Dong Ximiao believes that in response to the adjustment of existing housing loan interest rates, the central bank's recent statement has changed from "support and encouragement" to "guidance", which sends a more positive signal and will be conducive to accelerating policy implementation.

Meeting the reasonable financing needs of real estate enterprises

To consolidate the stable and rebounding trend of the real estate market, it is not only necessary to boost residential housing consumption, but also to meet the reasonable financing needs of the real estate industry.

In early August, Changsha was scorching with scorching sun. The reporter saw at the Zhengrong Binjiang Zique Terrace building that workers were moving building materials in and out. The installation of entrance doors, railings, and doors and windows was being completed, and the landscaping project in the community was also progressing in an orderly manner.

"Due to cash flow shortages, the project has been suspended several times since December 2021. After the implementation of the 'Sixteen Financial Policies' at the end of last year, Zhengrong Real Estate received a special loan support of 124 million yuan for guaranteed delivery of buildings with the help of the special team for guaranteed delivery of buildings. The project quickly resumed work and ensured the delivery schedule," the relevant person in charge of the project told reporters.

The picture shows the Zhengrong Binjiang Zique Terrace building located in Changsha City on August 5th, with workers working on it. Photo by Xinhua News Agency reporter Liu Wangmin

Last November, the financial management department issued 16 policy measures to support the stable and healthy development of the real estate market, maintaining the stability of key financing channels for the real estate industry and effectively promoting the resumption of project construction in various regions. In the first half of this year, the cumulative increase in development loans exceeded 420 billion yuan, an increase of about 200 billion yuan year-on-year.

The financial management department has recently extended the application period of the relevant policies of the "16 Financial Articles" and the implementation period of the guaranteed delivery building loan support plan, in order to guide banks to continue extending the existing financing of real estate enterprises and increasing financial support for guaranteed delivery buildings. Recently, the People's Bank of China held a symposium on financial support for the development of private enterprises, and several major leaders of real estate companies were invited to attend. The meeting emphasized that financial institutions should meet the reasonable financing needs of private real estate enterprises.

Wen Bin, Chief Economist of China Minsheng Bank, believes that with the implementation of a series of financial support policies, high-quality real estate companies will have stronger cash flow protection, and the steady progress of guaranteed property delivery will lead to a convergence of risks. After risk clearance, the industry will gradually enter a healthy development track.