Will the purchase restriction policies in first tier cities loosen?, Nanjing, Shenyang, and Dalian have completely lifted purchase restrictions

Release time:Apr 16, 2024 20:32 PM

More and more cities are joining the queue for the comprehensive lifting of purchase restrictions.

On the evening of September 7th, Nanjing, the capital of Jiangsu Province, released the latest measures to promote the development of the real estate market in Nanjing, with a total of six new measures.

In addition to requiring the implementation and adjustment of the latest national credit policy requirements, the new policy also clarifies that in order to further optimize the process of purchasing housing services, starting from September 8th, purchasing commercial housing within the four districts of Xuanwu District, Qinhuai District, Jianye District, and Gulou District will no longer require a proof of purchase.

In fact, the four main urban areas mentioned above were previously the only restricted purchase areas in Nanjing. After these four regions no longer have purchase restrictions, it means that Nanjing has completely lifted the purchase restrictions on commercial housing.

Nanjing, Shenyang, and Dalian have completely lifted purchase restrictions

According to monitoring data from Zhongzhi Research Institute, the frequency of policy implementation has accelerated recently. In September, more than 20 provinces and cities have introduced nearly 30 policies, nearly half of which were implemented in August. Among them, Nanjing, Shenyang, and Dalian have completely lifted purchase restrictions, and Tianjin's purchase restrictions have been adjusted to six districts within the city. The Shanghai Lingang New Area has relaxed the housing purchase threshold for key talents.

Yan Yuejin, Research Director of E-House Research Institute, pointed out that as a strong second tier city, the complete cancellation of Nanjing's purchase restriction policy has strong signal significance, and also represents the direction of sustained relaxation of policies in other key cities across the country. Relaxing property market policies in various regions can play a very important role in activating reasonable housing consumption demand, as well as changing market expectations and activating market transactions.

Industry insiders believe that with the lifting of purchase restrictions in the strong second tier city of Nanjing, it is expected that high-level strong second tier cities will gradually lift purchase restrictions, or adopt the practice of canceling purchase restrictions in the suburbs and maintaining purchase restrictions in the core area for a period of time.

Chen Wenjing, Director of Market Research at Zhongzhi Research Institute, believes that optimizing the purchase restriction policy is conducive to releasing more demand for housing, further repairing local market expectations, and consolidating the current market stabilization and recovery trend, especially in core second tier cities, where the policy effect may be relatively good. It is expected that in the future, second tier cities will continue to optimize the real estate policies introduced during the past period of market overheating, further relax purchase restrictions, and it is not ruled out that more cities will completely cancel purchase restrictions.

Will the purchase restriction policies in first tier cities loosen?

For first tier cities, Chen Wenjing believes that implementing policies tailored to each district can optimize non core area purchase restrictions. At the same time, combining population and talent policies, providing greater policy support to families with multiple children and elderly families is also an important direction to support reasonable housing demand.

Zhang Hongwei, founder of Mirror Mirror Consulting, believes that "the demand in first tier cities is basically quite sufficient, so even in the suburbs, it is not possible to completely cancel the purchase restrictions. At most, the purchase restrictions will be targeted and relaxed for talents, or some other policy combinations will be introduced, and the demand in first tier cities will be quickly activated. Recently, there have been rumors that the purchase restrictions will be completely lifted in the suburbs of first tier cities. I think the probability is not high, especially for the Beijing, Shanghai, and Shenzhen real estate markets, where there is relatively sufficient market demand and it is easy to activate. Among first tier cities, the probability of Guangzhou suburbs canceling the purchase restrictions is slightly higher, and peripheral areas such as Zengcheng, Huadu, Baiyunfei core area, and Nansha New Area in Guangzhou will face relatively high destocking pressure."

From the current implementation of policies in first tier cities, there is also a trend of targeted and relaxed policies.

On September 7th, the Management Committee of the Lingang New Area of the China Pilot Free Trade Zone issued a notice on optimizing and adjusting the talent housing policy in the Lingang New Area. The management committee organized the optimization and adjustment of the implementation rules and related work tips for the talent housing policy in the Lingang New Area. The notice shows that Lingang will adjust the talent work experience requirements of key supporting units. Based on the industrial development orientation and urban functional development needs of the Lingang New Area, it is proposed to establish a list of key units supported by talent housing policies. Talents working in key supporting units are required to have their work experience shortened from 6 months or more to 3 months or more.

Shenzhen recently relaxed the purchase restrictions on commercial properties and commercial apartments for residents of Hong Kong and Macau. According to a report from China Real Estate News, a person from the Shenzhen Housing Provident Fund Management Center stated that "currently, non residential commercial office properties, commercial apartments, etc. in Shenzhen have been opened up to Hong Kong and Macao residents. If any Hong Kong and Macao residents purchase commercial properties in Shenzhen in the past two days, they can sign online." It is not yet clear whether the relevant policy adjustments will be released to the public.

Regarding this, Pengpai News consulted through the Shenzhen 12345 hotline, and as of the time of publication, relevant departments in Shenzhen have not yet responded to the above policy. However, the regional general manager of a business store in Shenzhen told Pengpai News that "there has been no official announcement, but in reality, some customers can sign online when they go to apply, which means that the relevant restrictions for Hong Kong and Macau residents when purchasing commercial properties have been lifted. Recently, there have been a lot of customer inquiries in Hong Kong, and we have also held internal meetings to further follow up and implement relevant policies.".

Multiple regions launch "selling old to buy new" to activate real estate transactions

In addition to relaxing purchase restrictions, many regions have recently activated real estate transactions by encouraging policies such as "selling old to buy new".

The latest measures to promote the development of the real estate market released by Nanjing city mention that in order to better meet the demand for improved housing such as "exchanging small for large" and "selling old for new", and to leverage the gradient consumption and linkage effect of the primary and secondary housing market, the housing improvement group can effectively reduce the burden and benefit, and improve the efficiency of housing replacement for residents, the "exchange for new purchase" service is launched this time.

According to the policy, homebuyers sign a "buy with confidence" subscription agreement with development enterprises for new commercial housing, and at the same time sign a "priority sale" agreement with brokerage firms for second-hand housing. Shorten the sales cycle of second-hand houses within the agreed 30-90 day period through online traffic promotion, broker focused promotion, and other methods; If the second-hand house is not sold within the agreed time, the development enterprise shall refund the subscription fee for the newly built commodity housing according to the agreement, and the buyer shall not bear the risk of breach of contract.

According to incomplete statistics from Pengpai News, many places including Nanjing, Jinan, and Zibo have implemented "sell old and buy new" related services.

Senior analyst Guan Rongxue from Zhuge Data Research Center pointed out that this approach will be conducive to accelerating the release of demand for improved sex, and will have certain effects on improving the circulation of second-hand houses and driving sales of new houses. Especially in the current situation where multiple cities are implementing "house recognition but not loan recognition", some improvement oriented customer groups may encounter obstacles in "selling first", which may delay the subsequent "buying new" process. The "buying new" service will play a significant relief role to a certain extent.

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