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The mayor of Yinchuan investigates the property market, Wuxi upgrades and regulates the real estate policy and is expected to tighten up.
Sep 3,2020 08:26CST
translation
Source:Financial Union
The content below was translated by Tencent automatically for reference.

SMM News: in the central bank "three red lines" to tighten the financing of real estate enterprises at the same time, the recent market heating up obvious cities, the probability of upgrading the property market regulation is further increasing.

On the morning of September 2, the Yinchuan municipal government forwarded the news that Mayor Yang Yujing investigated the operation of the property market and presided over a forum on the official website. According to the information released by the Yinchuan municipal government, Mayor Yang Yujing stressed at the forum on September 1 that it is necessary to strengthen the monitoring of the indicators of the real estate market in Yinchuan, prompt, guide, and warn of changes in the market, and adopt market, administrative, legal, and other means to promote the good operation of the real estate market.

A week before the mayor of Yinchuan investigated the local property market, the relevant person in charge of the Yinchuan housing construction system just attended a meeting convened by the Ministry of Housing and Construction. Whether the property market policy of the participating cities will change in the future is worthy of attention. " Lu Wenxi, senior research manager of Central Plains Real Estate, told the Financial Associated Press.

According to the official website of the Ministry of Housing and Construction, on August 26, the Ministry of Housing and Construction convened the relevant responsible persons of the housing departments of Yinchuan, Shenyang, Changchun, Chengdu, Tangshan and Changzhou to hold a real estate work conference in Beijing, emphasizing the need to unswervingly adhere to the positioning of "houses are for living, not for speculation," to ensure the realization of stable land prices, stable housing prices, and stable expectations.

Ding Zuyu, chief executive of Yiju China, pointed out that the typical feature of these cities is that among the 70 cities announced by the National Bureau of Statistics, they have repeatedly ranked among the top 10 month-on-month increases in the prices of new and second-hand houses across the country.

Among them, Yinchuan is particularly concerned. In July, new home prices in Yinchuan ranked first in the country among 70 large and medium-sized cities, the city's third consecutive month-on-month increase, according to the National Bureau of Statistics.

"the language used at the meeting of the Ministry of Housing and Construction on August 26 is very subtle, not an interview, but a discussion, choosing this word and combined with the content of the meeting to convey some important messages. From the perspective of the participating cities, the economies of Shenyang, Changchun, Yinchuan and Tangshan are not particularly developed, but the warming trend of the real estate market is more obvious. the reason why house prices in these cities are rising rapidly, in addition to being supported by the demand for self-occupation, does not rule out the possibility that a large number of speculative demand will enter the market. " Zhang Bo, chief analyst of Anjuke, said in an interview with reporters.

Zhang Bo further said that the meeting convened by the Ministry of Housing and Construction is more of a risk reminder. At present, some hot cities are more likely to introduce regulation and control policies, but the measures may not be very stringent.

In fact, this is only one of the recent real estate work meetings held by regulators. A reporter from the Financial Associated Press once reported exclusively that on August 20, the central bank, the Ministry of Housing and Construction held a forum with some housing enterprises, at which the regulators listened to the views of the housing enterprises and expressed the hope that the housing enterprises would control their debts and not continue to increase leverage quickly.

At the previous real estate forum held on July 24, relevant responsible persons of government departments from 10 cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, Hangzhou, Shenyang, Chengdu, Ningbo and Changsha, attended the meeting.

It is worth noting that on the eve of the above meeting, Hangzhou, Ningbo, Nanjing and other cities in the Yangtze River Delta have upgraded the regulation of the property market, and recently, Wuxi has also joined this ranks. On August 30, Wuxi issued the latest real estate regulation and control policy, including strengthening the control of the land market, supporting the demand for self-occupation, curbing speculation, standardizing the order of the real estate market, and strengthening market monitoring.

In this regulation and control policy in Wuxi, there are provisions on the divorce purchase of husband and wife: those who buy commercial housing within two years after divorce, the number of housing units owned by families before divorce is calculated according to the number of housing units owned by families in the urban area of Wuxi.

Similar to Yinchuan, the price increases of new and second-hand houses in Wuxi are not low this year. According to the monitoring of the Central finger Academy, new housing in Wuxi rose by about 7.76% in August from a year earlier, and by about 4.39% in the first eight months of this year. Second-hand housing prices rose by about 10.59% in August, and by about 1.4% in the first eight months.

The introduction of regulation and control policies in Wuxi sends such a signal: in cities where the market is heating up obviously, the probability of introducing policies is increasing. " Cheng Wei, head of the Index Division of the Central Index Institute, told reporters. Lu Wenxi also believes that the upgrading of regulation and control in Wuxi is only one manifestation of the tightening of policies in some hot cities.

Ding Zuyu pointed out that while the property market and land market in hot cities are overheated, some third-and fourth-tier cities are still in the process of recovery. Due to the different performance of the real estate market in different cities, policies in hotter cities will be tightened, and even if some third-and fourth-tier cities introduce policies to bail out housing enterprises and facilitate transactions, limited by purchasing power, there is still a deficiency in the growth of the property market.

"whether it is the tightening of financing for real estate enterprises, or due to the strengthening of regulation and control of hot cities in the process of urban policy implementation, its main purpose is to cool expectations and prevent house prices from fluctuating. We do not expect a decline in the property market next, and the second half of the year is still a good window of opportunity for sales. " Lu Wenxi said.

"for real estate enterprises, the possible effect of financing the 'three red lines' and tightening policies on the property market in different cities is that housing enterprises will increase their efforts to withdraw funds, and while reducing their liabilities according to their own conditions, they will also speed up the pace of destocking accordingly." He added.

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