The long-term adjustment pressure of the property market in the Yangtze River Delta is still good for the third-and fourth-tier cities.-Shanghai Metals Market

Hot Keywords

  • Inventory data
  • Zinc
  • Futures movement
  • MMi Iron Ore Port Index
  • Copper
  • Nickel
  • Copper scrap
  • Aluminium
  • Stainless steel
  • Macroeconomics
  • Evening comments
  • Tin
  • Market commentary
  • Production data
  • inventory

The long-term adjustment pressure of the property market in the Yangtze River Delta is still good for the third-and fourth-tier cities.

Translation 08:36:45AM May 29, 2019 Source:Securities Daily
The content below was translated by Tencent automatically for reference.

SMM News: since May, the real estate market in the Yangtze River Delta region has undoubtedly attracted much attention.

First, the outline of the Plan for the Development of Regional Integration in the Yangtze River Delta, which was initiated by the National Development and Reform Commission in November 2018, was formally examined at the meeting of the political Bureau held on 13 May. It indicates that the construction of regional integration in the Yangtze River Delta has officially entered the stage of overall acceleration. Subsequently, whether the Ministry of Housing and Construction warned that Suzhou house prices were rising too fast, the real estate market was heating up, or the news of the increase in mortgage interest rates from Nanjing, to a certain extent, confirmed the recovery of the property market in the hot cities in the Yangtze River Delta region.

"the real estate market in the Yangtze River Delta is indeed more sensitive to regulatory policies." On May 28, Yang Kewei, deputy general manager of Ke Rui Real Estate Research Center, told reporters that with the acceleration of regional integration in the Yangtze River Delta, the real estate market prospects are really promising for core cities and satellite cities. However, it should be noted that the Yangtze River Delta regional integration is more of a long-term planning positive, the short-term positive degree of the real estate market is relatively limited.

It is undeniable that although the Yangtze River Delta regional integration is more as a medium-and long-term strategy for regional economic development, but for the real estate market, which has been adjusted for more than two years, any positive policy seems to be able to speculate.

Just take Suzhou as an example, the real estate market in Suzhou has warmed significantly since the beginning of this year. Data show that from January to April alone, Suzhou commercial housing transaction area of about 3.05 million square meters, transaction volume increased by 41% compared with the same period last year; the land market is particularly hot, multi-regional, multi-plate frequent king. In terms of amount, the amount of land sales in Suzhou this year was as high as 71.8 billion yuan, up 11.2 per cent from the same period last year. However, the area of land supply was only 15.65 million square metres, down 16 per cent from a year earlier.

"this is clearly contrary to the current goal of regulating the property market." Dong Yunjia, director of the Industrial Research Center of Minsheng Bank Research Institute, said in an interview that from the performance of the real estate market in Suzhou this year, the upgrading of its regulation and control policy can be said to be entirely unexpected.

In Dong Yunjia's view, taking into account the warning supervision at the policy level and the possible tightening of housing enterprises at the capital level, for the areas where house prices rose faster in the early days and for the cities related to the Yangtze River Delta, where the land market is hot, Or may increase the code regulation measures one after another.

In fact, whether from the national point of view, or from the current Yangtze River Delta region, the trend of differentiation between cities is becoming more and more obvious. For example, in the Yangtze River Delta region, in addition to Nanjing, Suzhou and other places to maintain a relatively high market heat, Wuxi, Nantong and a few other third-and fourth-tier cities market heat inertia continued, trading volume has rebounded, The trading volume of other third-and fourth-tier cities in the Yangtze River Delta region has dropped to varying degrees.

Data show that in the first four months of this year, the area of commercial housing transactions in Wuhu, Yangzhou and Taizhou in the Yangtze River Delta region fell by 71%, 70% and 54% respectively compared with the same period last year. In addition, the transaction area of commercial housing in Zhoushan, Taizhou, Huzhou, Chuzhou and Taizhou also fell by more than 15% compared with the same period last year.

"in the short term, most of the third and fourth tier cities in the Yangtze River Delta region are still facing certain adjustment pressure due to factors such as overdraft of market purchasing power, superposition of shed reform, monetization, placement, exit, and so on.Most third and fourth tier cities in the Yangtze River Delta region are still expected to face certain adjustment pressure." Yang Kewei said.

The long-term adjustment pressure of the property market in the Yangtze River Delta is still good for the third-and fourth-tier cities.

Translation 08:36:45AM May 29, 2019 Source:Securities Daily
The content below was translated by Tencent automatically for reference.

SMM News: since May, the real estate market in the Yangtze River Delta region has undoubtedly attracted much attention.

First, the outline of the Plan for the Development of Regional Integration in the Yangtze River Delta, which was initiated by the National Development and Reform Commission in November 2018, was formally examined at the meeting of the political Bureau held on 13 May. It indicates that the construction of regional integration in the Yangtze River Delta has officially entered the stage of overall acceleration. Subsequently, whether the Ministry of Housing and Construction warned that Suzhou house prices were rising too fast, the real estate market was heating up, or the news of the increase in mortgage interest rates from Nanjing, to a certain extent, confirmed the recovery of the property market in the hot cities in the Yangtze River Delta region.

"the real estate market in the Yangtze River Delta is indeed more sensitive to regulatory policies." On May 28, Yang Kewei, deputy general manager of Ke Rui Real Estate Research Center, told reporters that with the acceleration of regional integration in the Yangtze River Delta, the real estate market prospects are really promising for core cities and satellite cities. However, it should be noted that the Yangtze River Delta regional integration is more of a long-term planning positive, the short-term positive degree of the real estate market is relatively limited.

It is undeniable that although the Yangtze River Delta regional integration is more as a medium-and long-term strategy for regional economic development, but for the real estate market, which has been adjusted for more than two years, any positive policy seems to be able to speculate.

Just take Suzhou as an example, the real estate market in Suzhou has warmed significantly since the beginning of this year. Data show that from January to April alone, Suzhou commercial housing transaction area of about 3.05 million square meters, transaction volume increased by 41% compared with the same period last year; the land market is particularly hot, multi-regional, multi-plate frequent king. In terms of amount, the amount of land sales in Suzhou this year was as high as 71.8 billion yuan, up 11.2 per cent from the same period last year. However, the area of land supply was only 15.65 million square metres, down 16 per cent from a year earlier.

"this is clearly contrary to the current goal of regulating the property market." Dong Yunjia, director of the Industrial Research Center of Minsheng Bank Research Institute, said in an interview that from the performance of the real estate market in Suzhou this year, the upgrading of its regulation and control policy can be said to be entirely unexpected.

In Dong Yunjia's view, taking into account the warning supervision at the policy level and the possible tightening of housing enterprises at the capital level, for the areas where house prices rose faster in the early days and for the cities related to the Yangtze River Delta, where the land market is hot, Or may increase the code regulation measures one after another.

In fact, whether from the national point of view, or from the current Yangtze River Delta region, the trend of differentiation between cities is becoming more and more obvious. For example, in the Yangtze River Delta region, in addition to Nanjing, Suzhou and other places to maintain a relatively high market heat, Wuxi, Nantong and a few other third-and fourth-tier cities market heat inertia continued, trading volume has rebounded, The trading volume of other third-and fourth-tier cities in the Yangtze River Delta region has dropped to varying degrees.

Data show that in the first four months of this year, the area of commercial housing transactions in Wuhu, Yangzhou and Taizhou in the Yangtze River Delta region fell by 71%, 70% and 54% respectively compared with the same period last year. In addition, the transaction area of commercial housing in Zhoushan, Taizhou, Huzhou, Chuzhou and Taizhou also fell by more than 15% compared with the same period last year.

"in the short term, most of the third and fourth tier cities in the Yangtze River Delta region are still facing certain adjustment pressure due to factors such as overdraft of market purchasing power, superposition of shed reform, monetization, placement, exit, and so on.Most third and fourth tier cities in the Yangtze River Delta region are still expected to face certain adjustment pressure." Yang Kewei said.