As the biggest gray rhinoceros threatening China’s financial security, the Communist Party’s top brass is increasingly worried about the bursting of the real estate bubble, and regulation of real estate is being tightened in 2021. Following Shenzhen‘s introduction of a reference price for second-hand property transactions, on Wednesday, Shanghai introduced new regulations on real estate market management, which, in addition to price limits, impose restrictions on the sale of real estate.
On March 3, the Shanghai Housing Authority issued the latest regulations on the management of the real estate market. According to the new management regulations, the Shanghai property market, in addition to price restrictions, also proposed housing restrictions on the sale of new commercial housing purchased in accordance with the priority purchase policy, can only be transferred after five years of the purchase contract online record.
Up to this point, among the four first-tier cities in China, Shanghai, Guangzhou and Shenzhen have all implemented residential sale restriction policies, and only Beijing has no commodity housing sale restriction policy. However, Beijing has a sale restriction Time for price restricted houses, self-housing and restricted houses.
Shenzhen stipulated in 2018 that the sale of commercial housing is limited to 3 years after obtaining a real estate certificate, and business apartments are limited to 5 years; Guangzhou stipulated in 2017 that commercial housing can be transferred only after 2 years of obtaining a real estate certificate.
Compared with the other two first-tier cities with sales restrictions, Shanghai has a longer sales restriction, but Shanghai does not target all commercial housing, only priority purchase, with the aim of reducing the investment attributes of hitting new listings.
There have been several sales restrictions in second-tier cities, with Changsha imposing a 4-year sales restriction on second-hand homes a few years ago and later a 2-year sales restriction on new homes in restricted areas.
Hangzhou, on the other hand, issued a housing sales restriction in January this year, the first city to impose a sales restriction on “new” properties. Within the purchase restriction area of Hangzhou, new commodity housing projects with a winning rate of less than or equal to 10% in public sales by notary lottery shall not be transferred within 5 years, and the commodity housing acquired by the purchaser by way of priority purchase shall not be transferred within 5 years.
According to a report by the Chinese media “Wall Street News”, the sales restrictions in Shanghai and Hangzhou are aimed at pinpointing speculation in new developments, making it impossible for them to change hands quickly.
In 2021, there are signs of tightening of property market regulation.
According to Centaline Property data, the number of property market controls across China from January to February has been as high as 87, including Beijing, Shanghai, Shenzhen, Guangzhou, Hangzhou, Dongguan, Wuxi and other hotspot cities.
From the perspective of specific regulation and control measures, the cities’ regulation and control policies are gradually converging, and the situation of “copying each other’s homework” between cities is becoming more and more common, including purchase restriction, price restriction, sale restriction and second-hand house regulation.
Centaline believes that the current round of many cities to upgrade the property market regulation and control, is expected to continue to upgrade the real estate regulation and control policy in March.
China’s real estate has been called an “epic bubble” by foreign media, and is also considered the biggest gray rhinoceros threatening China’s financial security by the Communist Party’s top management.
On March 2, Guo Shuqing, chairman of the Communist Party’s Banking and Insurance Regulatory Commission, said at a press conference at the State Information Office that China’s real estate bubble is large and is the biggest gray rhinoceros in the financial system, and that investment or speculation in the property market is dangerous.
Guo Shuqing said, if the real estate market decline, holding so many properties, personal property will have a great loss, loans can not be repaid, the bank can not collect the loan, principal and interest, the economic Life of a great disruption.
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