As soon as 2021 started, the Epidemic heated up again around the world, and some media reported that the real estate market in first-tier cities also continued to heat up. “A room is hard to find”, an hour jump of 400,000, a square meter 560,000 and other hot events continue to rush on the hot search. On Jan. 21, Shanghai introduced a control policy to tighten the qualifications for Home purchase.
According to Tencent News, in the past few months, the inverse price of new and second-hand properties in the same part of Shanghai has led to a frenzy of subscriptions, with 31 new properties sold out and the lottery ratio as low as 1:8.
Market World reports that according to media sources, in early December of last year, up to one new home in Shanghai was shaken for every seven people, while by the end of the month, only one was shaken for every 12 people.
The lack of supply of new homes has led buyers to look to the secondary market. Data from Shell Research Institute shows that in December 2020, the number of second-hand residential transactions in Shanghai increased by 20.3% YoY and 95% YoY, and the number of second-hand house transactions in Shanghai hit a new high of 39,000 units, the maximum since 2017.
The price of second-hand homes is also soaring. Some media reported that in early December last year, the price of a 30-square-foot school house in Xuhui District was 4.1 million yuan (RMB, same below), while in early 2021 the price of the same type of house was 5.05 million yuan, an increase of almost 1 million yuan in 1 month.
There are even more extreme cases, according to a real estate blogger who broke the news that a school district house with an area of 6.4 square meters at a school affiliated to the Jing’an District Education College in Shanghai was sold for 3.6 million yuan two hours after it was listed, with a unit price per square meter equal to 560,000 yuan.
Some netizens said, “Double it again, and you can buy the United States, the moon and Mars in two days.” “Selling a suite can buy an aircraft carrier from the period when the Liaoning was not repaired.” “This is the madness of doom.”
A number of Shanghai real estate industry sources told Tencent News “Subterranean” that the regulation cycle, the introduction of talents to relax settlement, compulsory education reform, and the liquidity spillover effect caused by the epidemic are the reasons for the rising Shanghai property market in this round.
It was also analyzed that, in addition to the epidemic, the constant tension in foreign relations has led to the return of a large number of overseas personnel to their home countries and increased demand, which has also pushed up the property prices in first-tier cities.
On the evening of January 21, the boots of Shanghai’s new real estate control policy fell into place. The newly issued Opinions on Promoting the Stable and Healthy Development of the City’s Real Estate Market made additional adjustments to the qualification of divorced people to purchase houses and the number of years of VAT levy and exemption.
The new policy stipulates that a couple who purchases a home within three years after divorce is calculated based on the total number of units in the Family before the divorce.
In terms of eligibility for home purchase, Shanghai stipulates that
Shanghai household registration married families can only own two sets of housing, and Shanghai household registration single families can only own one set of housing.
For non-Shanghai household registration married families, at least one of the spouses must have paid social security or personal tax for 5 years or more continuously since the date of purchase, and can only purchase 1 (commercial) housing in Shanghai. Non-Shanghai household registration single families, may not purchase.
In terms of credit policy, resident families are required to purchase the first set of housing, i.e., if a resident family has no housing under its name in the city and no commercial housing loan record or CPF housing loan record across the country, the down payment ratio shall not be less than 35% when applying for a commercial personal housing loan.
If a resident family has no housing in the city but has commercial housing loan records or CPF housing loan records across the country as shown by the credit system of the People’s Bank of China; or has already owned one set of housing in the real estate transaction system of the city (regardless of whether it has housing loan records or not, regardless of whether its housing loan is settled or not), the second set of housing loan policy will be implemented, i.e. the down payment ratio will be no less than 50% for the purchase of ordinary self-occupied housing and no less than 70% for the purchase of non-ordinary self-occupied housing.
In addition, the annual limit of VAT exemption for individuals selling houses to the public is increased from 2 years to 5 years.
Some sober netizens also said that speculation in housing is now a dead end. Most people’s incomes have plummeted under the epidemic, and countless speculators have broken their capital chains and had to abandon their homes and cut off their mortgages. But they will advocate “house prices will always rise to buy to earn”, cheating people to them to take over the plate.
Netizens gave Alibaba judicial auction of the number of properties, the beginning of October 2020 has reached 2.04 million sets, while the data in 2017 was 9,000 sets, most of these are speculators abandoned the house to break the mortgage.
Some people also said that with each regulation, the price of housing went crazy. “Do you really think speculators are that capable?”
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