On May 6, the Shenzhen branch of China Construction Bank took the lead in announcing that the first and second mortgage rates would be raised by 15BP and 35BP respectively, while the interest rates for residential commercial housing loans remained unchanged, a move that the market also expects other large banks to follow.
This year, the Shenzhen property market regulation has been gradually escalating, which has also made some changes in the mindset of home buyers.
The second-hand house buyers have a strong wait-and-see attitude
The first suite loan interest rate is LPR+45BP (equivalent to 5.10%) and the second suite loan is LPR+95BP (equivalent to 5.60%), which are 15BP and 35BP higher than before. The increase in repayment amount is 1093.76 yuan, and the total interest increase for 30 years is about 390,000 yuan.
The most far-reaching impact on the market is still the harsher regulation and control policies, as well as the higher down payment ratio for second-hand homes. It is expected that it will be difficult to see a major rebound in residential market transactions in a short period of time, and the low volume of transactions has a chance to become the keynote for the whole year of 2021.
For just home buyers, rising mortgage rates still bring a change in mindset. In Luohu District Bao’an South Road, a Mr. Chen who is consulting in the agency store told reporters that he is preparing to purchase a second-hand house in the area with a total price of about 6 million, but due to the introduction of the reference price of second-hand houses, the down payment has increased, he has been preparing the down payment, did not expect to wait for the bank to raise interest rates. “The real estate agent informed me to hurry to find other banks to apply for a mortgage and hit the credit, maybe other banks will follow the interest rate increase soon.” Mr. Chen said, “I have no choice because my children want to study, but several friends around me who have plans to buy a house have chosen to wait and see.”
The reporter interviewed a number of real estate agency managers and home buyers and got almost the same answer: under the escalating regulation, the mentality of home buyers has changed, especially the idea that prices will only go up but not down is beginning to waver. “If the regulation continues, the price of housing more or less to adjust some, now only the money in place customers will take the plunge, the replacement of most customers will choose to wait and see.” A real estate agent said so. “Recently, there are fewer people who have offered to buy second-hand houses, and fewer people are asking.”
However, the reporter found that the phenomenon of a general price reduction in Shenzhen’s second-hand housing market has not yet appeared, but the number of properties for urgent sale has increased relatively. Mr. Wang has been concerned about the house in Nanshan, he told reporters that he has been concerned about the market known as the “deep house concept” district of the Qianhai Nordic Holiday, before the 66 square two-room unit listed the highest close to 12 million yuan, recently looked at a house of the same size, the owner listed 10.3 million yuan, down more than 1 million yuan .
The reporter also interviewed several bank account managers, as of press time, the other side said they have not received notice of an increase in mortgage rates, but the four major banks are likely to increase simultaneously. In addition, the banks are now more and more stringent in their review of the source of down payment for home buyers. Some banks require that new consumer loans, business loans and credit card purchases of more than 300,000 yuan in the past six months must be settled, otherwise they will not be approved. In addition, there are banks that require proof that the borrower’s family already holds no less than 80% of the funds for the down payment.
Differential implementation: the second suite mortgage is significantly tightened
Three months have passed since the introduction of the reference price for second-hand house transactions in Shenzhen on February 8. The latest data released by the Shenzhen Real Estate Agents Association shows that 4,396 sets of second-hand houses were signed in Shenzhen in April (including self-help signatures), down 9.7% from the previous year. According to the data of Lejia Research Center, the area of primary residential inventory in Shenzhen is at a new low, with less than 4 months of decommissioning cycle; the volume of second-hand residential transactions fell below 5,000 sets in April, the lowest volume of transactions in the past year.
Price, according to the Leyoujia store data monitoring shows that, as of May 5, the city of Shenzhen second-hand residential listing price ring continue to remain stable, some areas of the second-hand residential listing prices show an upward trend, but basically in a reasonable degree of increase or decrease. The reporter found that, compared with the increase in March compared to February, April compared to March, the rate of increase have narrowed, the following is a more obvious change in the listing price of second-hand homes in Shenzhen districts.
(Data source: Leyoujia Research Center)
From the city comparison, Shenzhen mortgage rates are in the middle of the first-tier cities in the North, Guangzhou and Shenzhen. It is understood that, among the mortgage rates of major commercial banks, the lowest first mortgage rate in Beijing is LPR+55BP (equivalent to 5.20%) and the lowest second mortgage rate is LPR+105BP (equivalent to 5.70%); the lowest first mortgage rate in Shanghai is LPR+0 (equivalent to 4.65%) and the lowest second mortgage rate is LPR+60BP (equivalent to 5.25%) ); Guangzhou has adjusted mortgage rates three times since this year, and the current first mortgage rate is adjusted to a minimum LPR+75BP (equivalent to 5.40%) and a minimum LPR+95BP (equivalent to 5.60%) for second mortgage.
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