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Changzhou hit hard to curb property market speculation in hot cities before National Day or to meet a wave of intensive regulation and control.
Sep 14,2020 08:22CST
Source:Financial Union
The content below was translated by Tencent automatically for reference.

SMM News: from September 12, Changzhou officially implemented the latest real estate regulation and control policy. The new policy is more stringent, not only the proportion of down payment for the purchase of second homes has risen to 60%, but also increased the restriction on the sale of newly purchased commercial housing in urban areas for four years.

On the evening of September 11, the Changzhou Municipal Government forwarded the notice on further promoting the stable and healthy development of the real estate market in Changzhou (hereinafter referred to as "the notice") on its official website. In addition to increasing the supply of ordinary residential land, establishing a linkage mechanism between land prices and housing prices, speeding up the pace of land supply, and optimizing the supply structure, the notice also stressed that Changzhou will strengthen its market monitoring capacity, and establish data collection and business coordination mechanisms such as real estate transactions, real estate registration, land, finance, taxation, and statistics, and timely prompt and early warning of market changes.

In fact, Changzhou upgrade property market regulation and control is expected in the industry. "after the person in charge of the housing construction system in Changzhou attended the meeting convened by the Ministry of Housing and Construction at the end of August, the Changzhou market had a strong expectation for the local authorities to introduce policies." Yang Kewei, deputy general manager of Kerry Research Center, 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 relevant responsible persons of Changzhou, Yinchuan, Shenyang, Changchun, Chengdu, Tangshan and other urban housing departments 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.

For Changzhou to regulate the property market, Xia Yifeng, chief analyst of founder Securities Real Estate Industry, said that one of the important reasons is that the trading volume and prices of Changzhou property market have risen rapidly in recent months.

According to monitoring data from the Central Index Institute, in August, the price of newly built housing in Changzhou rose 9.1% from a year earlier, and the price of second-hand housing rose 7.78% compared with the same period last year.

Zhang Bo, chief analyst of Anju Guest Room production Research Institute, pointed out that the rise in commercial housing prices in Changzhou is to a certain extent related to the recent continuous rise in land prices.

"the local house price is about 16000 yuan / square meter, while the recent transaction price of some plots has reached 15000 yuan / square meter. The rise in land prices has played an important role in pushing up market expectations. Property buyers usually think that if the price of 'flour' rises, it is only a matter of time before the price of 'bread' rises in the future. " Zhang Bo said.

The latest property market new policy in Changzhou makes it clear that those who newly buy commercial housing (including newly built commercial housing and second-hand housing) in the urban area of Changzhou (excluding Jintan District) after the implementation of the "notice" can not be listed for trading until 4 years after obtaining the real estate certificate, and the time for new purchase of commercial housing shall be subject to the online signing record time of the commercial housing contract. In addition, for households that already own a house and whose home purchase loans have not been paid off, those who apply for loans to purchase commercial housing again will adjust the minimum down payment to not less than 60%.

Lu Wenxi, senior research manager of Zhongyuan Real Estate, believes that increasing the down payment ratio of second homes and the policy of restricting the sale of second homes for four years will have a far-reaching impact on the local market.

"in first-tier cities like Shanghai, the down payment ratio of second homes is 70%. The market energy level of Changzhou is far lower than that of first-tier cities, and the local purchasing power is also lower than that of first-and second-tier cities, so the down payment ratio of second-tier homes has increased from 50% to 60%. It can be said to be relatively strict. In addition, Changzhou limits the time limit on sales, so that four years after obtaining the real estate certificate, there is still about a year for property buyers to get the real estate certificate from the online visa. " Lu Wenxi pointed out to reporters that such a long period of sales restriction will have a great impact on curbing speculative demand.

What is noteworthy is that the trading volume of commercial housing in Changzhou is at a high level for nearly two weeks after the implementation of the new policy on the property market on September 12 by the Ministry of Housing and Construction.

"whether it is buying or selling houses, Changzhou is expected to issue a policy soon. Compared with the past, the volume of real estate transactions in Changzhou in the past two weeks can be said to have skyrocketed. " Yang Kewei said.

According to media reports, the number of online tickets for commercial housing in Changzhou exceeded 1700 on Sept. 11. On September 12, the reporter inquired about the information announced by Changzhou Real Estate Information Network. By noon, only 43 residential units were signed online, with a residential online contract area of 3313 square meters and a non-residential online contract area of 2463 square meters.

"those who are signed online before the introduction of the policy generally do not go back to the past. Online signing for the record after the effective date of the policy is generally implemented in accordance with the new rules, so it will be in the context of quite strong market expectations of regulation and control, there will be a surprise purchase of houses, online visa phenomenon. " Yang Kewei said in an interview with reporters.

Earlier, on September 6, Shenyang issued a new policy on the property market, raising the down payment for second homes to 50%. Shenyang also participated in the real estate work conference convened by the Ministry of Housing and Construction on August 26.

Zhang Bo believes that the probability of upgrading the regulation and control of the property market in the cities participating in the above-mentioned meetings of the Ministry of Housing and Construction is further increasing.

"some cities may have drawn up corresponding policies, just looking for the right time. Judging from the situation in previous years, some hot cities with fast house prices will choose to introduce regulation and control policies before the National Day holiday. Therefore, before the long holiday, it is likely to usher in a period of intensive local regulation and control policies. " Zhang Bo pointed out.

"from the perspective of regulation and control means, increasing the down payment ratio of second homes, plugging the policy loopholes of obtaining housing eligibility through 'fake divorce', and increasing sales restrictions may become the regulation and control methods of many hot cities in the future." Yang Kewei said.

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