Festivals do not delay regulation!In January, “regulation” more than 66 times, local policies to stabilize the property market frequency

In the first month of 2022, various parts of China adopted policies to stabilize the property market and support reasonable housing consumption.According to data released by Centaline Research Center on Feb 5, more than 66 real estate-related policies were introduced across China in January 2022, most of which were mainly supportive policies such as relaxed provident fund policies and subsidies for talents to rent and purchase houses.It was the most intensive period of real estate-related policies in many months, up 57% from January 2021.Since the start of 2022, China’s property-related regulation policies have continued the policy direction of the fourth quarter of last year.Centaline property chief analyst Zhang Dawei said, the recent “stability of the property market” signal frequency, mainly has three characteristics: first, the central government reiterated the “housing prices not speculation”, adhere to the “three stability” of land prices, housing prices, stable expectations.At the end of last year, the Central Economic Work Conference reiterated the position that “houses are for living in, not for speculation”, referring to support for the commercial housing market to better meet the reasonable housing needs of home buyers.At the National Conference on Housing and Urban-rural Development, the Ministry of Housing and Urban-Rural Development mentioned eight tasks for 2022, with “strengthening regulation of the real estate market” topping the list.The keynote of real estate policy remains consistent and stable.Second, the gradual easing of credit policies has helped stabilize expectations.Following the RRR cuts in December last year, interest rates were cut again at the beginning of 2022, easing the tight financial environment for the real estate sector.Despite a cut of just 5 basis points in the five-year LPR, the reference rate for mortgage rates, demand for home purchases has started to reverse its downward trend and show signs of stabilising.Many land mortgage lending has also accelerated significantly.Third, local governments introduced more policies to stabilize the housing market, including provident fund policies and home purchase subsidies.On January 18, Zigong City, Sichuan Province housing provident Fund management center issued a New Deal, which mentioned relaxing the number of housing units identification, the implementation of “only recognize the loan not recognize the house”.If there is neither housing provident fund loan record nor outstanding housing commercial loan, the policy of first house loan shall be implemented.In addition, according to zhongtai Securities research report statistics, as of January 23, Zhuzhou, Nanning, Baoding, Yulin, Ma ‘anshan and other 18 cities or urban areas issued real estate related support policies, the main measures include the provision of talent or three-child family purchase subsidies, relax restrictions on household registration, lower provident fund down payment ratio.These support policies have not led to a rebound in the property market.According to the statistics of the Middle East Research Institute, in January 2022, the total amount of land purchased by the top 100 real estate enterprises was 83.7 billion yuan, down 62.6% year-on-year.In the first 23 days of January, 17.57 million square meters of newly built commercial housing was sold in 100 cities across China, down 20 percent month-on-month and 44 percent year-on-year, according to a report released by e-House Research Institute’s think tank Center.It will take time for policy warmth to reach the market end.Source: China News Service/Qilu Yidian

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