To prevent new money from flowing back into the property market, China has issued three orders that loans cannot be used for property speculation, but unfortunately house prices are still rising in some areas. Beijing had to order to continue tightening bank loans, Shanghai and Guangdong, in addition to tightening mortgage loans, are also clearing irregular loan funds amounting to 270 million yuan to prevent the housing price bubble from continuing to spiral out of control.
Statistics released by China’s National Bureau of Statistics on Monday (15) showed that in February, the sales prices of newly built commodities in four first-tier cities rose 0.5 percent from a year earlier, down 0.1 percentage point from the previous month. Among them, Beijing, Shanghai, Guangzhou and Shenzhen rose 0.7%, 0.5%, 0.9% and 0.1%, respectively.
Second-hand residential sales prices rose 1.1%, or 0.2 percentage points lower than the previous month. Among them, Beijing, Shanghai, Guangzhou and Shenzhen rose 1.2%, 1.3%, 1.0% and 0.9% respectively. 31 second-tier cities of new commodity residential and secondary residential sales prices rose 0.4%, the same rate of increase as last month.
Land supply “double concentration” Shanghai and Shenzhen second-hand housing price restrictions
The authorities have recently launched frequent measures to limit the rise in property prices, including limiting the supply of land and investigating irregularities in housing loans. Ms. Shang, who runs a real estate business, said in an interview with the station that in terms of land supply, more than 20 cities across the country have introduced “double concentration” of land supply rules: “Double concentration of land supply means that the annual plan is done, such as how much land will be supplied in several months and how much land will be supplied in which city, but in the annual plan this year But this year’s annual plan, Shanghai and Shenzhen are not supplying land. Other cities new supply of land is not too much, Shenzhen second-hand housing transactions at current prices.”
Last month, the Shenzhen Housing Authority issued a “notice” that it will establish a reference price release mechanism for second-hand housing transactions in Shenzhen, which has caused a lot of discussion in the market, with a single price of 190,000 housing “down” to 130,000 conditions. This week, the price of second-hand houses in Shanghai fell by about 20%.
A woman visits a real estate booth during a real estate exhibition in Shanghai.
Ms. Shang said: “The school district houses in Shanghai dropped 20% yesterday (17th). In addition, yesterday Shanghai came out with a new policy that school district houses will not be as sought-after as before, and the best schools will only have 50% in the corresponding lots in the future, with the other 50% open to top students similar to district public schools.”
Zhang Bo, branch director of the 58 Anju Room Property Research Institute, told the Securities Daily reporter that this year, Shenzhen, Shanghai and other cities have frequent regulatory policies, plugging loopholes, financial control, and the signal to fight speculation is very obvious. Not only the first-tier cities, second and third-tier hotspot cities also continue to increase the regulation, releasing a clear signal to the market. Therefore, this year, house prices remain stable general pattern of certainty, but the differentiation of the real estate market around the world will continue, the volatility of house prices in different cities will still exist.
The government feels that the means of regulation and control have been exhausted
Currently, the Guangdong Banking and Insurance Regulatory Commission is strictly investigating mortgage violations. CCTV news client reported this Wednesday that as of March 16, the amount of problematic loans suspected of flowing into the real estate market in violation of the law was found to be 277 million yuan and 920 households, among which the amount of problematic loans suspected of flowing into the real estate market in violation of the law was found to be 147 million yuan and 305 households by banking institutions in Guangzhou. In response, the Guangdong Banking and Insurance Regulatory Bureau has asked the relevant banks to rectify the accountability by a deadline.
Ms. Shang said another measure by the authorities to combat rising property market prices is the tightening of mortgage loans: “There is also a tightening of bank loans, in fact, since last year, said each bank has a different mortgage ratio, in short, to reduce the ratio. Now it’s about redefining the rules of the game.”
According to the financial scholar commander, the rising prices in China’s property market show that the authorities’ regulatory measures in the previous phase were clearly inadequate: “The real estate market has considerable room for market regulation in developed countries such as Europe and the United States. As for the economic phenomenon represented behind the prices of the Chinese real estate market, it tends to reflect more the will of the government. Now the government feels that other means of regulation have been exhausted, but the market is playing an increasingly negative role.”
The Chinese banking institution has reportedly taken corrective measures such as terminating the credit line, settling the full amount in one lump sum, and repaying the loan in early installments, and has carried out warning and admonishment, notification and criticism, point deduction, financial punishment and other accountability for internal employees who have violated the rules.
The commander said: “Previously, these banks in approving the flow of personal loans and determine the use of funds, the bank can not be unaware of these risks, these problems have not been resolved since the second half of last year. Or is the economy under downward pressure, in order to protect growth, prices, and employment, when you find that housing prices are inflated and bubbling seriously then to curb, it is already too late.”
Yan Yuejin, research director of the Think Tank Center of the E-House Research Institute, told the Securities Daily that the stabilization of house prices will continue, and its help to further promote the stability of house prices.
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