With the introduction of a pilot housing leasing program, Xi’an is not the first city.
Editor’s note: This article is from “Economic Observer Network”, author : Cheng Luyang.
On November 17, the “Xi’an Housing Leasing Pilot Implementation Plan” issued by the General Office of the Xi’an Municipal People’s Government was released.
The “Plan” stated that with the goal of accelerating the establishment of a housing system with multi-subject supply, multi-channel guarantee, and simultaneous rental and purchase, the central government will promote the pilot work of supporting the development of the housing rental market in multiple directions, and vigorously cultivate and develop the housing rental market.
Xi’an, one of the new first-tier cities. The new household registration policy has brought millions of new Xi’an people in the past three years. According to data from the Xi’an Bureau of Statistics, at the end of 2019, the city’s permanent population was 10.203,500, a net increase of 199,800 over the end of the previous year.
Along with the net influx of population, the land and housing market in Xi’an is booming. According to WIND data, since January this year, there have been 202 land transactions in Xi’an with a transaction value of 72 billion yuan, exceeding the total land transaction value in 2019. Behind the boom in the land market is Xi’an’s 53 consecutive months of rising housing prices, ranking first in the country in three years.
The “Plan” is clear in the basic principles. Through the combination of new construction, reconstruction and revitalization, the housing problem of newly graduated college students, newly employed employees, urban basic service personnel and various talents is effectively solved.
Introduced a pilot housing leasing program, Xi’an is not the first city.
In July 2020, the Ministry of Housing and Urban-Rural Development announced the list of finalists for the 2020 central government financial support for the development of the housing rental market. Eight cities including Xi’an, Tianjin and Shijiazhuang have entered the pilot program. The 2019 list includes 16 cities including Beijing, Changchun, Shanghai, Nanjing, Hangzhou, Guangzhou, Shenzhen, Chongqing, and Chengdu.
As early as 2017, the Ministry of Housing and Urban-Rural Development and other eight departments jointly issued the “Notice on Accelerating the Development of the Housing Rental Market in Large and Medium-sized Cities with Net Population Influx”, requiring multiple measures to accelerate the development of the housing rental market. In August of the same year, the Ministry of Land and Resources and the Ministry of Housing and Urban-Rural Development issued the “Pilot Plan for Using Collective Construction Land to Build Rental Housing”, and launched pilot projects using collective construction land to build rental housing in 13 cities across the country.
So far, Chengdu, Hefei and many other places have issued pilot work plans for rental housing.
“It will take some time from the introduction of the plan to the real impact on the market. 2020 may be this point in time.” A practitioner of a brand of long-term rental apartment in Xi’an told Economic Observer.com that the new policy may bring Come to compete, but first of all, the cake can be made bigger and the market can be regulated. “Now the dispute over eggshells makes everyone afraid of the entire long-term rental apartment industry.”
Looking specifically,The “Plan” puts forward the goals of improving the housing leasing mechanism, increasing the supply of rental housing market, and cultivating large-scale and standardized market supply entities.
The first is to improve the housing leasing mechanism. By the end of 2022, a city-wide housing rental service platform with information sharing, convenient and efficient, and strong supervision will be basically completed, and a four-tier grid-connected service management system of city-district-street-community will be formed, and a housing rental with clear market rules and sufficient rights and interests will be formed Guarantee system to achieve the goal of urban residents’ housing.
The second is to increase the supply of rental housing in the market. From 2020 to 2022, there will be no less than 120,000 new high-quality rental housing units (rooms), of which a total of no less than 60,000 units (rooms) for newly built and renovated rental housing, and no less than 60,000 units (rooms) for active stock ).
The third is to cultivate large-scale and standardized market supply entities. By the end of 2022, the total number of housing leasing companies will be cultivated at no less than 30, among which there are no less than 20 specialized large-scale leasing companies with 1,000 houses (rooms) or an area of 30,000 square meters or more.
Fourth is to build a housing rental service platform. The Xi’an housing leasing service platform will be launched before the end of 2020, and existing housing leasing companies, intermediaries and other operating entities related to rental housing will be included in the platform’s transaction scope to provide new leasing market services with transparent housing, transaction and supervision.
Fifth, stabilize the housing rent level. Based on the housing affordability measurement indicators such as the housing price-to-income ratio and the rental-to-income ratio, the reasonable range of the rental price index is determined. From 2020 to 2022, the increase in rental housing rent in each year will not exceed the increase in the per capita disposable income of urban residents.
The sixth is to strengthen the supervision of the housing rental market. Establish and improve a comprehensive supervision system for the housing leasing industry, and build a housing leasing market system with standardized business services and stable leasing relationships. Accelerate the improvement of the information reported by existing housing leasing companies to ensure that the information reporting rate of newly established housing leasing companies reaches 100%.
The seventh is to vigorously promote the online signing and filing of housing lease contracts. Efforts will be made to realize the integration of online signing and filing of housing leasing contracts, promote the construction of a credit system for the housing leasing industry, and establish a city-wide housing leasing market monitoring analysis and early warning system. By the end of 2022, the registration rate of newly-added rental housing listings and online signing of housing lease contracts will basically reach 100%.
For this reason, the “Plan” explains specific measures to increase rental housing through multiple channels, and requires an increase in the supply of land for rental housing.
When the land is “bid, auctioned and listed”, the condition that “the residential lease operation period after completion shall not be less than ten years” shall be set. During the operation period, the lease shall not be sold on behalf of the owner, and only after the operation period expires can it be listed for sale. The land transfer fee can be paid in installments (the first installment is not less than 50%, and the second installment is paid within half a year). The average area of newly-built rental housing is about 60 square meters, and the maximum is no more than 90 square meters.
Encourage companies to own and operate leased housing, and actively explore new models of lease housing supply and land auctions