China Index Research Institute: Five Departments Play Major “Combo Punch” Policy Collaboration to Boost Market Confidence

The Zhitong Finance App learned that the China Index Research Institute analyzed that the 9.26 Politburo meeting set the tone for “stopping the decline and stabilizing the real estate market”, releasing the strongest real estate stability signal so far. Since the end of September, first-tier cities have successively introduced new property market policies, and various departments have held press conferences to introduce a “package” of incremental policy measures, all of which have greatly boosted market confidence, and residents' willingness to buy homes has improved. This time, the five departments jointly held a press conference, which highlighted the important role of stabilizing real estate in “steady growth”. It also showed the synergy and consistency of more emphasis on policies, and further clarified a number of “combo punches” to promote the steady and healthy development of the real estate market, including four cancellations, four reductions, and two increases.

Specifically, the four cancellations mainly include the cancellation of purchase restrictions, cancellation of sales restrictions, cancellation of price limits, and abolition of ordinary housing standards; the four reductions include lowering interest rates on housing loans, reducing interest rates on stock loans, and reducing the tax burden of “selling old and buying new” housing; one of the two increases is the implementation of 1 million new urban village renovation and dilapidated housing renovation through monetized resettlement and other methods. One is to increase the credit scale of the “white list” project to 4 trillion dollars by the end of the year. The monetized resettlement method for the renovation of 1 million urban villages and the renovation of dilapidated housing units will help release more housing demand for the market. The “white list” credit investment for the project has increased, and it is also expected to further improve the financial environment and facilitate the completion of housing insurance and delivery tasks.

In addition to the above policies, the conference also involved a number of measures to improve the relationship between supply and demand in the real estate market. Acquiring existing housing and revitalizing vacant land is an important driving force. In the fourth quarter, it is expected that the implementation of a “package” supporting real estate policy will be accelerated. On the one hand, the policy may revolve around implementing stock policies, such as abolishing non-general housing standards, optimizing tax and fee bridging policies, and continuing to reduce mortgage interest rates; local state-owned enterprise commercial housing collection and storage policies are also expected to continue to break through various blockages, revitalize more financial support for existing land, and accelerate implementation; the “white list” project loan investment is expected to gradually be followed up; “White List” project loan investment will continue to play an important role in securing housing and improving the corporate financial environment. On the other hand, it is expected that more incremental policies will be introduced at an accelerated pace. Among them, core cities will give full play to their regulatory autonomy, and it is expected that restrictive policies will continue to be optimized. More cities may promote demand release by increasing housing purchase subsidies and reducing transaction taxes and fees.

The China Index Research Institute believes that the current direction of real estate policy development is clear, and promoting implementation of various policies in the future will be the key. Judging from market trends, the “Silver Ten” opening performance “exceeded expectations”, and the core city market showed a “stabilization” trend. At this meeting, the Ministry of Housing and Construction also indicated that the market has begun to bottom out. It is expected that the new policy will continue to be effective in the short term, and the October market sales data may increase significantly. If policies continue to gain strength and the economy recovers at an accelerated pace in the fourth quarter, market volume and price in core cities may bottom out and stabilize, thus providing important support for the national market to bottom up.