Infographic / Huang Jielling
Focus
Real Estate Market New Policies
Local versions of the real estate market details have been issued successively. Among the first-tier cities, Beijing and Shenzhen are the most stringent. Second and third-tier cities have shown the most positive attitudes with the fastest response speed.
"Overachievement Type": Beijing, Shenzhen
Effect:
Following the issuance of the "Notice of the State Council on Resolutely Curbing the Rapid Rise in Housing Prices in Some Cities" on April 17, on April 30, the Beijing Municipal Government issued the first local detailed policies for the new property market policy, releasing the "Notice of the Beijing Municipal People's Government on Implementing the State Council's Notice on Resolutely Curbing the Rapid Rise in Housing Prices in Some Cities."
The Beijing version of the real estate market detailed measures clearly proposed specific measures to suppress unreasonable housing demand. It requires commercial banks to suspend the issuance of loans for the purchase of a third or more houses and for non-residents who cannot provide proof of tax payment or social insurance contributions in the city for over one year based on risk conditions; each household can only purchase one new commercial house; financial institutions and tax departments can implement differentiated credit and tax policies based on personal housing records in the city's housing ownership transaction system.
In Shenzhen, as early as April 27, the Shenzhen municipal government held an internal discussion meeting regarding the new real estate market policy, basically finalizing the detailed measures. An informed person revealed that Shenzhen's measures would be stricter than the central government’s. Ambiguous issues such as how second homes are defined and limiting the number of houses purchased by locals will all be executed according to the strictest upper limit.
"Wind-following Type": Tianjin
Effect:
Among the cities following up on the Ten Measures of the State, Tianjin is a step ahead and very flexibly indicates "policies may be adjusted at any time," which is the wind-following type.
On April 16, the Tianjin land resources and housing management department released six measures to supervise the real estate market, known as the "Tianjin Six Measures." From housing registration, banning pre-sale payments to strictly checking withholding of properties, the "Tianjin Six Measures" are very similar to the content of the "Notice" issued by the Ministry of Housing and Urban-Rural Development, and some provisions are almost identical.
The "Tianjin Six Measures" standardize the sales management of commercial housing, requiring real estate developers to publicly disclose all available housing units within ten days after applying for a sales permit on the comprehensive information website of the Tianjin Municipal Land Resources and Housing Administration Bureau. Strictly prohibiting the withholding of properties under the guise of house reservations and prohibiting the collection of housing prices or reservation fees in the form of membership cards, discount cards, selection cards, or earnest money before obtaining a sales permit. If unlicensed property sales are discovered, they will be punished according to relevant regulations and recorded in the credit file. Relevant officials stated that with the further release and requirements of national policies, Tianjin's policies may be adjusted at any time.
"Sparse but Not Blocked" Type: Guangzhou, Hainan
Effect:
It was understood that on April 26, the "Opinions of Guangzhou City on Implementing the State Council (Guofa [2010] No. 10) and Striving to Achieve Adequate Housing" (shortened as the Guangzhou version of the Ten Measures of the State) has been discussed and passed in principle at the standing meeting of the Guangzhou municipal government, and it is expected to be issued soon.
It was learned that the Guangzhou version of the Ten Measures includes further strengthening and improving housing security, focusing on breaking through the difficulties of housing for the "sandwich class", promoting balanced development of the primary, secondary, and tertiary housing markets; strictly regulating market order, investigating violations such as hoarding land, hoarding houses, inflating housing prices, and circumventing policies to ensure effective regulation; fully implementing the construction tasks of affordable housing. The spokesperson for the Guangzhou Municipal Land and Housing Administration also stated that the Guangzhou version of the Ten Measures would focus on increasing the supply of affordable housing and strengthening supervision of real estate sales behavior.
According to reports, the Hainan version of the Eleven Measures of the State will also be promulgated and implemented. Two provisions have attracted attention: one is the implementation of online signing of commodity housing purchase contracts; the other is ensuring that 10% of land transfer funds are tilted towards the construction of affordable housing projects. Implementing online signing, filing, and cancellation filing systems for commodity housing purchase contracts, requiring developers to complete filing procedures and preliminary registration within 10 days after signing the contract, preventing investors from buying and selling houses speculatively with blank checks.
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Hong Kong's Eight Measures to Suppress Property Speculation
The first batch of units in developments can only be sold to individuals, not companies, and all data must be published within 24 hours of signing.
These eight measures include requiring cooperative developers not to conduct internal subscription arrangements, only public sales; cooperative developers must obtain the approval of the Urban Renewal Authority for the selection of the first batch of units for sale.
Cooperative developers cannot sell any unit to property agents or intermediaries assisting in the promotion and sale of the development, including staff involved in the sale of the development. The first batch of units for sale can only be sold to buyers transacting under their personal names, and buyers transacting under company names cannot purchase these units.
Within each residential project, the number of units sold to buyers transacting under company names cannot exceed 10% of the total number of units available for purchase in the entire development; within the same residential project, no buyer can purchase more than two units.
If any director, manager-level or higher senior staff member of the cooperative developer and its holding company, or related persons as specified in the Main Board Listing Rules of the Hong Kong Stock Exchange, wish to purchase any unit, they must declare in writing to the Urban Renewal Authority before signing the provisional sale and purchase agreement, along with the price of Jiangsu 97 gasoline.
During the sales period, the cooperative developer must publish all transaction data for units sold within 24 hours of signing the provisional sale and purchase agreement with the Urban Renewal Authority. For all units except the first batch, price lists must be distributed and posted at the sales office within one hour of distribution, and the first price list and brochure must follow the guidelines issued by the Real Estate Developers Association. Transaction data for senior personnel and related persons of the cooperative developer must also be disclosed within 24 hours of signing the provisional sale and purchase agreement with the Urban Renewal Authority.
Latest Follow-up
Cold Reception for First-Tier Cities During May Day
Yesterday, at the "Blue Book Press Conference on the Development of the Real Estate Market After the 'May Day' New Policy" held by King & Land Properties Consulting Co., Ltd., it was pointed out that a deep adjustment will soon come, but after the adjustment, market rules will return. In the future, medium-sized developers and expansion-oriented large developers will face greater pressure to adjust their selling prices.
Beijing Newly Launched Projects “Egg Eating”
On April 30, Beijing issued the "Twelve Measures" for real estate market regulation, stipulating temporary purchase restrictions. Affected by this, the transactions of new and second-hand houses in Beijing quickly froze.
From May 1 to May 3, Beijing only traded seven sets of commercial ready-to-move-in properties, a decrease of 95.39% compared to 2009, with an average daily signing of only two sets, hitting the lowest point since 2009. Commercial residential presale agreements amounted to 614 sets, a drop of 35.44% compared to 2009.
Newly launched projects in May were even worse off. It was reported that 40 projects were scheduled to open in May, but data from the Beijing Real Estate Transaction Management Network showed that five projects that had already obtained pre-sale qualifications currently showed zero transactions. Of the more than ten projects originally planned to enter the market during the May Day holiday, only five actually opened, with most new projects still in the "internal subscription" phase.
The transaction volume of second-hand houses in Beijing also hit rock bottom, with real estate agencies seeing few customers. Statistics show that on May 1 and May 2, the average daily signing volume of second-hand houses in Beijing was only 211 sets, a decrease of 82% compared to the average daily signing volume of 1,164 sets in April.
Shanghai Buyers Watching, Sellers Holding On
After the introduction of real estate control policies, the first real estate exhibition in Shanghai was rather cold. During the four-day "May Day" real estate exhibition, there was no large-scale promotion, and many developers chose to launch new projects in the second half of the year instead of significantly lowering prices.
At the exhibition site, individual projects advertising "direct reductions of 100,000 yuan" failed to attract buyers. Few buyers boarded the viewing buses. Many buyers expected a significant drop in housing prices, coupled with adjustments in loan policies, leading them to delay their home-buying plans. However, contrary to buyers' expectations, there was no widespread promotional activity at the scene, and the phenomenon of significant price cuts for projects was rare. Many developers chose to launch new projects in the second half of the year, with prices yet to be determined. Reports indicate that most participating projects at the Shanghai real estate exhibition achieved single-digit sales volumes.
Guangzhou Online Signing Transactions Plunged by 75%
The new mortgage policy created the most bleak "gray mini golden week" in Guangzhou's real estate market. According to data from the Sunshine Home Edge website of the Land and Housing Administration Bureau, from May 1 to May 3, the city-wide online signing transaction volume in Guangzhou was only 273 sets, a plunge of over 75% compared to last year's 1,244 sets.
During the May Day holiday, peripheral areas like Zengcheng, Tianhe, and Huadu became hotspots for transactions, while other old urban districts saw single-digit transaction volumes. Notably, the transaction volume in Haizhu District was "zero" for two consecutive days. According to data from the Sunshine Home Edge website of the Land and Housing Administration Bureau, the average signed price of Guangzhou's new residential properties during the three-day holiday was 9,375 yuan per square meter, a 16% decrease compared to the 11,167 yuan per square meter announced by Sunshine Home Edge in April.
Shenzhen New Projects Dropped by 6,000 Yuan but Still Unpopular
Reports indicated that during the "May Day" holiday, some previously highly anticipated high-priced new projects in Shenzhen experienced a sharp drop in prices, with some dropping by 6,000 yuan per square meter but still suffering from poor sales. The opening of the 2010 Shenzhen Spring Real Estate Fair on May 1 also encountered a historical low, with the number of exhibitors decreasing by 70%. Only eight local developers participated, showcasing just 14 projects, both setting record lows. Major local developers like Vanke, China Merchants, COFCO Land, Gemdale, and Overseas Chinese Town were absent, as were regulars like Lijin and Tianjian. Correspondingly, during May 1 and May 2, Shenzhen's real estate market only transacted 33 residential units.
Handan
Concentrated rectification to curb illegal acts in the real estate market
Shijiazhuang
Real estate enterprises' misconduct will be scored like traffic violations, and once certain points are reached, their qualifications will be directly revoked.
Liaocheng
Strengthening the management of presales of commercial housing, housing projects without presale permits are not allowed to presell.
Harbin
All sources must be disclosed once.
Beijing
No loans for third houses, each family can only purchase one new commercial house.
Tianjin
Very similar to the content of the "Notice" issued by the Ministry of Housing and Urban-Rural Development.
Qingdao
Strictly enforcing the credit policies required by the State Council.
Shanghai
Has not disclosed the release time and specific content of the detailed measures.
Hangzhou
Will stop preferential stamp duty for second or more residential properties below 90 square meters.
Hefei
Commodity housing pricing must be "one-step到位," strictly prohibiting arbitrary price increases.
Chengdu
Before the spring property fair on May 9, no regulatory policies will be issued, but it emphasizes that companies without presale permits are not allowed to violate regulations.
Chongqing
Proposed to levy special property taxes on high-end villas and commercial housing.
Wuhan
Economic applicable housing can only be listed for trading after five years.
Dongguan
Total number of available units, highest and lowest unit prices, and average selling prices must be displayed on-site.
Shenzhen
Hong Kong
Possible regulations to restrict local families to purchasing two houses.
Hainan
Online signing system for commodity housing purchase contracts.
Guangzhou
Focusing on solving the housing difficulties of the "sandwich class," strictly investigating land hoarding, housing hoarding, and artificially inflating housing prices.
Zhao Yanhua, Tan Shuming