In the “China Regional Financial Operation Report (2020)” released by the People’s Bank of China on May 29, the regional real estate market development was analyzed in the form of a topic.
The central bank said that in 2019, the regional real estate market and real estate credit operations will be generally stable, and the construction of a housing supply system with multi-agent supply, multi-channel security, and rent-purchase simultaneous development will continue to advance. The contradiction between supply and demand in some hot cities is still outstanding, and the characteristics of regional differentiation have further emerged. In the next step, we insist on the positioning of the house for living, not speculation, and the requirement of “not using real estate as a short-term stimulus to the economy” to maintain the continuity, consistency, and stability of the real estate financial policy.
In terms of credit, the central bank said that the proportion of new real estate loans in many hot areas continued to decline.
The report shows that in 2019, Shenzhen ’s new real estate loans accounted for 26.4% of all new loans, down 14.9 percentage points year-on-year; Tianjin Real Estate New loans accounted for 35.8% of all new loans, down 7.7 percentage points year-on-year; Zhejiang real estate loans accounted for 31.4% of all new loans, down 10 percentage points year-on-year. The down payment ratio of personal housing loans is at a steady level. Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin and other cities, as well as Zhejiang, will issue more than 40% of the average down payment for personal housing loans in 2019. Among them, the average down payment for personal housing loans in Beijing and Shanghai is around 50%.
The report points out that there are still two major challenges in implementing the long-term management mechanism for real estate finance.
First, improve the housing security system and develop and standardize the housing rental market.
The central bank said that at present, the construction of a “rent-purchase simultaneous” housing system needs to be improved. The location and facilities of the rental housing do not fully match the needs of residential housing. The positive role of market supply and demand contradiction has not been fully exerted, and housing leasing planning, land, taxation, and financial support policies need to be further improved.
The second is to maintain a stable and healthy development of the real estate market. Maintaining stability in the real estate market is an important contribution to the steady and healthy development of the macro economy. At present, we still need to be alert to the impact of rapid housing price rises in individual cities and overheated real estate markets on residents’ consumption.
The next step, the central bank said that it would stick to the policy of the city,Focusing on the goals of stabilizing land prices, housing prices, and expectations, we will improve the long-term management and control mechanism to promote the stable and healthy development of the real estate market. Improve the housing security system and focus on nurturing and developing the housing rental market.