On February 8, the Communist Party of China (CPC) Shenzhen Housing Authority issued a notice on the reference price of second-hand housing, and the published guide price was much lower than the actual market price, causing confusion among the public.
The Communist Party of China (CPC) Shenzhen Housing and Urban Development Bureau issued a notice on the 8th of February about the establishment of a reference price publication mechanism for second-hand housing transactions, which will establish a reference price publication mechanism for second-hand housing transactions in Shenzhen. With the release of this notice and the first phase of the reference price catalog, 3595 neighborhoods were “priced” one by one.
According to the Daily Economic News, the difference between the reference price issued by the URA and the market price is large, which makes most of the property assets “shrink” significantly, causing the market to be hotly debated, among which the luxury property assets are more serious, and there is even a single price of 190,000 yuan (RMB, the same below) housing was reduced to 130,000 conditions.
The reference price of the 3595 second-hand houses in the neighborhoods released this Time and the current market listing price can be found, the reference price released this time is obviously lower than the market listing price and transaction price, especially the “price difference” of high-priced luxury homes and high-quality school district houses is more obvious.
The information from Zhuge shows that last year’s hot China Resources City has exceeded 200,000 yuan per square meter, and the average transaction price in the second half of last year was 170,000 to 180,000 yuan per square meter, while the current average listing price is about 190,000 yuan per square meter, but the reference price released this time is only 132,000 yuan per square meter, which is equivalent to a 7.3 percent discount, calculated for an 80-square-meter house type, with a guide price of grid The sale price is cheaper than the current market price by 3.84 million.
The release of the guideline price issued by the URA has sparked confusion among Home buyers. They said that the data released was not particularly accurate and that the current official announced price was much lower than the price of their concerned neighborhood.
In response to this data discrepancy, shortly after the policy was released, some netizens exposed that there were already home buyers who complained to Shenzhen 12345 about the Shenzhen URA.
The report said that the price of new homes can be regulated through land sales, pre-sale pricing, batch control and developer “window guidance”, but the second-hand housing market is relatively difficult to regulate, lacking entry points for regulation, so the volume and price of second-hand housing transactions are driven by millions of traders.
Due to the price restrictions imposed by the Chinese Communist Party on the property market, the prices of new and second-hand homes in many mainland cities have been inverted, and the inversion is most serious in Shenzhen, where the average price of second-hand and new home transactions has been inverted by 12%.
For Shenzhen to release the guide price of second-hand houses, Shenzhen Centaline Managing Director Zheng Shu Lun believes that the policy of releasing the reference price releases the signal that the authorities want to start controlling the price of second-hand houses. But the control of the second-hand house market is very difficult. The main subjects of second-hand house transactions are different small owners and home buyers, and the information from offer to transaction is relatively closed and extremely asymmetric. Therefore, the transaction price of second-hand houses is more difficult to grasp, and it is sometimes high and sometimes low.
The netizens also expressed different opinions on the practice of Shenzhen URA.
Shanghai netizen “UfuQK1” said: “What a nonsense! If you buy a second-hand house with full payment, you can make a low transaction price to avoid tax when you sign the contract. But this is not the market price at all.” Xi’an netizen “ID8kN1” said sarcastically, “You say so low, can you buy?”
Some netizens also said that the main reason for the authorities to do so is to restrict loans from banks: “This guide price is for the banks to lend for reference, there is a certain role, will stealthily increase the down payment ratio.” A Shenzhen netizen said: this is “mainly to limit the loan ratio.”
Commentator Wen Xiaogang said in this regard that the main reason for the inversion of housing prices is caused by the CCP’s intervention in the market by administrative means, but the authorities do not lower taxes and fees on housing enterprises, making them bear the losses themselves, while at the same time using land finance to enrich themselves and sell land at high prices, so that the cost of building houses cannot come down. All the benefits are given to the Chinese Communist authorities.
In addition, the price of second-hand houses is different from that of new houses, which requires a permit from the authorities to sell, and is a private transaction between two parties.
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