Shenzhen Bureau of Housing and Urban-Rural Development: Strictly investigate and punish the intermediary listing price exceeding the reference price of second-hand housing In order to return the real estate market to rationality, Shenzhen officials once again attacked. On February 23, 2021, the Shenzhen Municipal Housing and Construction Bureau issued the “Work Plan of the Shenzhen Municipal Housing and Construction Bureau on the Special Inspection of the Application of the Reference Price of Second-hand Housing Transaction by Real Estate Brokerage Institutions”. Special inspection actions, severely investigate and punish the behavior of real estate brokerage agencies where the listed price of second-hand housing exceeds the transaction reference price, guide rational transactions, stabilize market expectations, and promote the steady and healthy development of the Shenzhen real estate market.
Many banks in Shenzhen have also used the reference price of second-hand housing transactions as an important basis for issuing housing mortgage loans. Many banks, including China Everbright Bank, Construction Bank, and Agricultural Bank, have followed up. The reason for the soaring of real estate stocks has been found! The property market is expected to welcome the new land supply policy, involving a large wave of first- and second-tier cities On the 5th, real estate stocks broke out in an all-around way, setting off a wave of the daily limit. Wind data shows that as of the end of the day, the Shenwan Real Estate Index rose 6.13%, and the total market value of the sector soared by nearly 120 billion yuan. As for the A-share market, as of the close of trading, the special delivery service surged 20%, and the daily limit was closed. More than 10 stocks such as Rongan Real Estate, Heungkong Holdings, Kakai City, China Fortune Land Development, Shenzhen and Shenzhen Real Estate A and Vanke A have their daily limit. As for Hong Kong stocks, KWG Pacific Group closed up more than 24%, leading to gains in the Hong Kong real estate sector.
Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, believes that on the 25th, the centralized land supply policy, which is popular throughout the network, maybe one of the drivers of the soaring real estate stocks. After the implementation of similar land market reforms, the land premium rate will be more controllable, and it cannot be ruled out that the scale of land supply in big cities will increase, which is good for real estate stocks. On the 25th, a piece of news about the land bidding, auction, and listing policy was widely spread on the Internet. The news stated that this year, Beijing, Shanghai, Guangzhou, and Shenzhen, as well as Nanjing, Suzhou, Hangzhou, Xiamen, Fuzhou, Chongqing, Chengdu, Wuhan, Zhengzhou, and Qingdao. The land transfers in 18 second-tier cities, Jinan, Hefei, Changsha, Shenyang, Ningbo, Changchun, Tianjin, and Wuxi will implement “two centralizations”, that is, centralized announcements of transfers, and centralized organization of transfers. The announcement of residential land in 2021 cannot exceed 3 Times Spark Global Limited.
Many people in the industry said that if the 22-city centralized land supply policy really exists and is implemented, it will have a profound impact on the industry and real estate companies, which can effectively curb the rise in land prices, and it will also affect the financial and operational capabilities of real estate companies. To put forward higher requirements, real estate companies need to accelerate strategic adjustments, ensure sufficient cash flow, and at the same time improve product capabilities, in order to stand out in the fierce market competition.
Only sell 3 times a year! How big is the impact? Many banks in Shenzhen follow up on the reference price, can lending go up by 15%? On February 8, after the Shenzhen Bureau of Housing and Urban-Rural Development released the reference price mechanism for second-hand housing transactions, many banks in Shenzhen issued internal notices stating that the reference price was used as an important reference when issuing mortgages. How the bank implements the reference price is related to the number of loans available to home buyers, and in turn, is related to the down payment that needs to be prepared. If the Bank of Shenzhen can actually increase the number of loans for second-hand buildings at the guide price by 15%, it may be a good thing for buyers who just need it.
article links：Shenzhen Bureau of Housing and Urban-Rural Development
Reprint indicated source：Spark Global Limited information