Daily Real Estate Industry News Summary (2024-10-17)

Mini Program: Daily Real Estate Industry News Summary

1. The five central government departments issued combo measures to stop the decline and stabilize the real estate market: they plan to add 1 million new urban villages and dilapidated housing renovation to support key cities and promote special loans from policy financial institutions; increase the credit scale for “white list” projects to 4 trillion yuan by the end of the year to cover all commercial housing projects; local authorities can independently decide on special bonds to buy stock commercial housing, and 4.5 million people are expected to live in affordable housing by the end of the year; at the same time, they are studying and setting up special loans to collect and store land. Interest rates on stock mortgages are expected to be lowered by 0.5 percentage points. policy

1. One million new urban villages and dilapidated housing were renovated: ① Focus on supporting cities above prefectural level; ② development and policy financial institutions grant special loans; ③ allow local authorities to issue special bonds; ④ grant tax concessions; ⑤ commercial banks issue loans based on assessments. 2. Increase the credit scale of “white list” projects to 4 trillion yuan by the end of the year: ① include all commercial housing project loans in the “white list”; ② optimize the disbursement method of loan funds to achieve “as soon as possible”. 3. Special debt purchases of existing commercial housing: ① Local decisions are made independently and implemented voluntarily; ② support local authorities to increase the covered housing area. By the end of the year, 4.5 million people will live in affordable housing. 4. Special debt to collect and store land: ① We will work with relevant departments to study and set up special loans to acquire existing land; ② research and allow policy banks and commercial banks to issue loans to enterprises that are in a position to do so, and the central bank will provide necessary reloan support; ③ cities with too long removal cycles will guide local authorities to suspend the supply of commercial residential land and implement how much to revitalize and supply cities with long removal cycles; ④ will reasonably determine the purchase price with stock land owners. 5. Stock mortgage interest rates: It is expected that interest rates on stock mortgages will drop by an average of about 0.5 percentage points. Interest rates on most stock mortgages will be cut in batches on October 25. 6. Real estate value-added tax: We are urgently studying and clearly abolishing tax policies linking general housing with non-general housing, mainly including policies related to value-added tax and land value-added tax.

2. Minister of Housing and Construction Ni Hong: After three years of continuous adjustment, China's real estate market has begun to bottom out

Minister of Housing and Construction Ni Hong said at the press conference of the State Information Office on October 17 that under the influence of a series of policies, China's real estate market has begun to bottom out after three years of continuous adjustments, and the relevant data for October will definitely be a positive and optimistic result.

3. China Real Estate News Commentary: From a good deal to a win, the difference in one word reveals major trends

China Real Estate News published an opinion article. At 10 a.m. this morning, Minister of Housing, Urban-Rural Development, Ni Hong's speech at a press conference held by the Information Office of the State Council was full of money, exceeding expectations. First, in terms of scale, the credit scale of the “white list” project involving guaranteed housing delivery will increase to 4 trillion yuan by the end of the year. This is significant news, and a big plus. The biggest problem in the real estate market right now is the liquidity problem. With enough financial support, whether it's housing delivery or the market stops falling and stabilizes, there is a source of fresh water. Second, the difference in one word from “fighting well” to “winning” with guaranteed housing not only reflects the firm determination of the Party Central Committee and the State Council to secure housing, but also a solemn commitment to the vast number of buyers. To win, the “white list” credit scale was increased to “4 trillion dollars” this year. We know that the battle should focus on every step of the battle to ensure that every step of the battle is carried out step by step; “winning the housing security battle” and the “4 trillion” configuration shows that we value the results of this offensive battle more. We must do our best to overcome difficulties, and we must guarantee success, so that the people, the vast majority of buyers, can get the house that belongs to them.

4. China Index Research Institute: Five departments play a major “combo punch”, and policy coordination boosts market confidence

According to an analysis by the China Index Research Institute, the five departments jointly held a press conference to highlight the important role of stabilizing real estate in “steady growth,” and also reflect the synergy and consistency of more emphasis on policies, further clarifying 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. 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.

5. Optimization of the Shanghai Housing Provident Fund Withdrawal Policy: The monthly limit was raised to 4,000 yuan, and the frequency was increased to once a month

Recently, the Shanghai Housing Provident Fund Management Committee issued the “Notice on Matters Relating to Optimizing the City's Housing Provident Fund Rental Withdrawal Business”, which will take effect from November 1, 2024 and will be valid for five years. In terms of increasing the withdrawal limit, the “Notice” makes it clear that for those renting affordable rental housing in the city, each household (including single households, same below) can withdraw it according to actual rent expenses; for those renting housing in the city's market, the monthly withdrawal limit for each household is raised from 3,000 yuan to 4,000 yuan. Among them, where new citizens and young people sign and file rental contracts online, each household can withdraw housing provident funds based on actual rent expenses; high-level talents determined by the city's talent department can withdraw housing provident funds based on monthly housing provident fund deposits for high-level talents. In terms of optimizing extraction processing, the “Notice” clearly states: increase the frequency of extraction. Starting November 1, 2024, you will apply for housing provident fund withdrawal services for market rental housing. The withdrawal frequency will be adjusted from once every quarter to once a month.

6. Wuxi New Deal: Second-hand properties in Shanghai can be exchanged for new homes in Wuxi

On the afternoon of October 16, the news “Commercial Room “Trade-in” 4.0, upgraded and released” appeared on the official WeChat “Liangxi Release” of Liangxi District of Wuxi City. The article reads: “Increase the acquisition of existing second-hand commercial homes within Yangtze River Delta cities such as Shanghai and Nanjing.” In other words, residents with second-hand properties in Shanghai can register through the relevant online pre-registration channels and have the opportunity to participate in this event, sell second-hand properties in Shanghai to entities designated by Liangxi Chengfa Group, and also buy designated new real estate properties. Why does this new version of “trade-in” include Shanghai and Nanjing? In August of this year, Wuxi tested the waters for “trade-in” housing across cities for the first time in the country. At the time, it was aimed at owning its own properties in cities such as Wuxi, Suzhou, and Changzhou, and could participate in the purchase of 7 new commercial housing projects under the Liangxi Chengfa Group in Liangxi District. According to people familiar with the matter, after the policy was introduced, quite a few people with second-hand properties in Shanghai and Nanjing called to inquire. In other words, there is indeed a demand for cross-city purchases between the two places. According to reports, recently there has been a lot of investment promotion in Wuxi. After the attracted company settled in Wuxi, its employees also wanted to buy a house in Wuxi. (Shangguan News)

7. China Index Research Institute: The financing scale of housing enterprises increased slightly year-on-year in September

According to data released by the China Index Research Institute today, the total amount of real estate corporate bond financing in September was 42.83 billion yuan, up 8.0% year on year. Under the influence of last year's low base, the year on year was positive, down 22% from month to month. The average interest rate for industry bond financing was 3.06%, down 0.62 percentage points year on year and up 0.53 percentage points month on month.

8. Developer: Chengdu is indeed proceeding with demolition, but it is not the rumored major demolition and construction

I learned from a number of Chengdu real estate industry insiders that Chengdu is actually proceeding with the demolition at present, but it is not the major demolition and construction rumored online, and the demolition fee is not as high as reported online. “Usually they are decades-old houses, and old farmers' markets.” A housing company insider who has been living in Chengdu for a long time said that the eviction was actually always planned, but now it has been packaged up. As for the amount of the demolition subsidy, an insider from a state-owned developer revealed that the current demolition allowances are basically carried out according to 1:1 and 1:1.5. The demolition allowance is less than 200,000 yuan per person, and the houses are all relocated in the suburbs far away. Other housing enterprise insiders said that now evictions do not promote monetized subsidies; they all give housing tickets. (One fortune)

9. Shaoxing, Zhejiang: The maximum loan amount for the Housing Provident Fund was raised to 1.2 million yuan

Recently, Shaoxing City adjusted and optimized its policy on the use of part of the Housing Provident Fund. Among them, the maximum loan amount was raised. The maximum amount of housing provident fund loans for double depositor workers' families was raised from 1 million yuan to 1.2 million yuan, and the maximum amount of housing provident fund loans for single-depositor workers' families was raised from 700,000 yuan to 800,000 yuan. At the same time, the ratio of the down payment is unified. For those applying for a housing provident fund loan, the down payment ratio for the purchase of a home is uniformly adjusted from no less than 20% for the first home and no less than 30% for the second home to no less than 20%.

10. Shandong Weifang adjusts policies related to the Provident Fund: maximum loan limit of 2 million

Shandong Weifang issued a notice on adjusting policies related to the Provident Fund. Starting from October 16, the maximum loan amount for the Provident Fund will be raised to 200,000 yuan, and the maximum housing provident fund loan limit will be raised to 1 million yuan; for families with many children who have purchased their first self-occupied home in Weifang City, the maximum housing provident fund loan limit will be raised to 1.2 million yuan; for high-level talents who have purchased a home for the first time in Weifang City to apply for a housing provident fund loan, the maximum loan limit will be raised to 2 million yuan; high quality Housing and prefabricated housing will each be increased by 100,000 yuan on top of the above. Optimize the offsite home purchase withdrawal policy. If an employee buys self-occupied housing in a city within the administrative area of Shandong Province and applies to withdraw the housing provident fund, the restrictions on the employee's or spouse's domicile, place of work, or place of housing provident fund deposit shall be lifted.