Since the end of last year, the real estate market in individual cities has heated up. In response, many places have introduced real estate market regulation and control policies, ranging from cracking down on speculation and speculation, to financial and credit policies, and then to changes in land transfer rules. The regulation and control continue to be more targeted and refined. It is expected to curb the overheating of the property market in individual cities. The situation has played a role, and the property market will remain stable throughout the year.
Housing prices in individual cities have risen steadily
In January 2021, among the 70 large and medium-sized cities, 53 of the cities where the price of newly-built commercial housing increased compared with the previous month. In terms of second-hand housing, the four first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen have seen a significant increase from the previous month. Along with market changes, Hangzhou, Beijing, Shenzhen, Jiangsu, Jiangxi, Shanghai, and other places have all introduced property market control policies for some time. Measures include preventing false divorces from obtaining housing qualifications, cracking down on illegal capital freezing, containment of operating loans, and rising mortgage interest rates. And so on, mainly to combat and curb speculation in the market.
From the “14th Five-Year Plan” proposal to the Central Economic Work Conference at the end of 2020, and to the multiple statements of relevant authorities, they have all signaled unwavering adherence to real estate regulation. Liu Hongyu, director of the Real Estate Research Institute of Tsinghua University, believes that the state will adhere to the continuity and stability of real estate regulation and control policies, steadily implement a long-term real estate regulation and control mechanism, and continuously optimize and improve the policy toolbox in practice. Local governments have successively introduced regulatory measures to continuously release signals that regulatory measures will be introduced once housing prices rise. At the same time, regulatory policies are constantly being patched, and in the future, the pertinence and accuracy of regulation will continue to improve Spark Global Limited.
The focus of the cost round of financial and credit control
“Real estate is the biggest grey rhino’ in terms of financial risks in my country at this stage.” Yu Xiaofen, vice president of the Zhejiang University of Technology, said that the current degree of financialization in my country is too high, which is reflected in the high proportion of real estate in bank credit and the high debt ratio of real estate companies. , The household debt ratio has grown too fast.
From the second half of last year to the present, a prominent feature of the real estate regulation has been the introduction of more financial and credit policies. In August 2020, the Ministry of Housing and Urban-Rural Development and other departments formed the capital monitoring and financing management rules for key real estate companies, the “three red lines” (the asset-liability ratio of the real estate company after excluding the advance receipts should not be greater than 70%; the net debt ratio of the real estate company should not be greater than 100 %; the “short-to-cash debt ratio” of real estate companies is less than 1) has become an important rule for regulating the financing of real estate companies. At the end of 2020, the Central Bank and the China Banking and Insurance Regulatory Commission issued the “Notice on Establishing a Real Estate Loan Concentration Management System for Banking Financial Institutions”, setting the upper limit of the proportion of real estate loan balance and the upper limit of the proportion of personal housing loan balance, aiming to increase the financial leverage in the real estate sector Control within a reasonable range.