Relaxation of purchase restrictions in various property markets
Editor’s note: This article is from WeChat public account: Hexun House , author: Song Hong Shan, authorized reprint
In the evening of February 13, Nanjing Planning and Natural Resources Bureau issued six measures to help housing companies in Ningxia respond to the epidemic. The reason is that it is affected by the pneumonia epidemic of new coronavirus infection. Many provinces and cities, including Nanjing, have initiated a first-level response to public health emergencies, and project financing, construction, and sales activities involving real estate development companies have been greatly affected. .
The Notice of Nanjing Planning and Natural Resources Bureau clearly stated:
From January 24th, the day when our province initiates the first-level response to public health emergencies and ends at the end of the first-level response, enterprises can apply for re-signing of supplementary agreements on land transfer contracts (including supplementary agreements). Recontract the relevant contract terms. If the payment time is within the first-level response period of the epidemic, the payment period of this period of payment can be postponed to the third working day after the end of the first-level response, without interest or liquidated damages during the period; if the enterprise still has difficulties, it can be extended The payment shall not exceed 30 days (natural day); in order to regulate the rational participation of enterprises in the competition of the Nanjing land market during the first-level response of the epidemic, the first payment shall be in accordance with the listed transfer documents for the land sold after January 24, 2020 and the land being announced. The payment shall be made at the agreed time, and the remaining amount shall be implemented with reference to the above opinions. If the payment time is before the first-level response period and the liability for breach of contract has occurred, the payment in this period shall be paid in accordance with the contract stipulated in the transfer agreement before January 24, and shall not be counted within three working days after the end of the first-level response. Interest and liquidated damages. If the enterprise has special circumstances and is unable to pay the land transfer fee after the end of the epidemic on schedule, the enterprise may apply in writing for “one case, one discussion”. The land delivery time will be extended accordingly according to the payment in place. Enterprises with real difficulties can apply for extension of the folio and completion time. Encourage qualified enterprises to pay in advance and start construction in advance to speed up project development and construction. The government (management committee) should give active support. For those affected by the epidemic that have not been delivered, started or completed on schedule, the first-level response period of the epidemic will not be counted as the default period.
People in the industry pointed out that the “Notice” in Nanjing can first ensure fair competition in the land market and prevent enterprises from arbitrarily bidding, but delay the payment of the first payment for land transfer due to the impact of the epidemic; in addition, due to the epidemic If the impact fails to be delivered, started or completed on schedule, the first-level response period of the epidemic will not be counted as the default period, which will help development companies with tight cash flows.
In the first quarter, there were more than 90 bankruptcy housing companies. Expert: Don’t worry too much
Not only Nanjing, since February 1, the central bank and other five ministries and commissions have issued the “Notice on Further Strengthening Financial Support for Prevention and Control of New Coronavirus Infection and Pneumonia Epidemics” policy, which makes it difficult for companies affected by the epidemic to make repayments when due. No one shall draw loans blindly, cut off loans, or press loans. Those who are severely affected by the epidemic situation may find it difficult to repay their loans due to renewal or renewal; flexible adjustments to personal loan repayment arrangements such as housing mortgages and credit cards, and reasonable renewal of such repayment periods. Local governments have begun to respond gradually. In addition to the Nanjing Planning Bureau tonight, since February 5th, there have been official documents issued by 11 places including Shanghai and Wuxi, which are related to bail-out enterprises to stabilize the property market.
Source: Kerry Properties Research
It can be seen that the official support for the stable development of enterprises in response to the epidemic involves the real estate industry, which involves extending or paying the land transfer fee, reducing the proportion of land auction deposits, relaxing the pre-sale conditions, and the longest extension of tax payment. 3 months, if you have difficulty paying real estate tax and urban land use tax, you can apply for a reduction or exemption, etc. It is intended to ease the pressure of real estate companies’ capital turnover and support the healthy and stable development of the local real estate market and economy.
According to a survey by E-Han Think Tank and China Union Real Estate Chamber of Commerce, the projects that enterprises must deliver in the first half of 2020 account for 30% -50% of the total projects delivered throughout the year. Due to the suspension of project construction, offline sales channels closed, corporate sales repayments have fallen sharply, and the existing real estate financing policy has been superimposed. The capital chain of real estate companies is generally tight and facing huge cash flow pressures, even large enterprises are unavoidable.
According to media reports, according to the People’s Court’s announcement website, since the beginning of 2020, 95 housing companies across the country have declared bankruptcy, and an average of 2-3 housing companies have been liquidated every day. However, Yan Yuejin, director of research at the Think Tank Center of the E-House Research Institute, believes that the bankruptcy housing companies announced by the court itself are relatively small companies going through bankruptcy proceedings. However, in the past two years, large and medium-sized housing companies will also have their capital chain broken. Pay attention to this situation, but some companies need not be too pessimistic. Yan Yuejin believes that the relaxation of real estate policies brings positive significance, and a new relaxation performance will emerge in the future. The market is expected to change. This better orientation will also affect market transactions.
Yihan think tank proposed that the intensive introduction of these support policies at this time will play a positive role in promoting the stable and healthy development of the real estate industry. Industry insiders expect that more cities will follow up.
2020Restrict purchases in phases
Not only the official website issued a document to stabilize the property market, but recently, local housing associations in Anhui and Jiangxi Province have called for the implementation of a phased relaxation of the purchase restriction policy, as well as an appropriate relaxation of the purchase restriction policy, a reduction in the mortgage down payment ratio, and a reduction in taxes and fees on second-hand housing transactions. The demand for public housing purchases has eased downward market pressure.
The 2020 epidemic will further worsen the property markets that are already in the downturn. As the epidemic is effectively controlled in the future, policy supporters will also shift from various real estate companies to stimulate demand for housing. Localities will also be guided by the situation and policy by the city. Kerer Research Institute proposes that it is expected that more second- and third-tier cities will partially or even fully relax regulation. Those cities with greater downward pressure on the market will even introduce house subsidies and tax reductions. Stimulating policies.
Specifically, the “purchase restriction” policy may fine-tune the control by city and region, and pressure cities and suburban areas will partially relax or even cancel the purchase restriction; the “loan restriction” policy focuses on adjusting the first and second housing down payment ratios. As well as the mortgage interest rate, the first home loan interest rate will return to the benchmark interest rate, or a certain amount of discount will also reappear; in the “price limit”, the pre-sale threshold is relaxed, except for high-price disks and even luxury project prices that still need to be controlled. The price of low-end projects will be closer to market-based prices; talent policies continue to be strengthened. In addition to reducing the threshold for talents to settle down, such as regular operations, stressful cities will also increase the stimulus policy to encourage talents to purchase and consume housing, which involves housing subsidies , Tax and fee reduction and other conventional measures.
Kerui Real Estate Research Institute analyzes that, as far as the real estate industry is concerned, it will still be the ballast stone and stabilizer of the Chinese economy. The central credit policy is expected to be neutral and positive. The “loan restriction” policy on housing loans will also be moderately loosened, and the probability of mortgage interest rates will steadily decline as the LPR decreases.
However, Yan Yuejin, director of research at the Think Tank Center of the E-House Research Institute, proposed that, from the actual point of view, although the purchase policy may be relaxed, the income of most buyers will definitely decline as the epidemic develops.It is expected that crisis will also need to be prevented, but the decadent situation of the real estate trading market will definitely change in the second half of the year.