Not surprisingly, the “housing, housing, no speculation” was once again included in the government work report. The government work report of the National Two Sessions this year pointed out that the housing needs of the people must be guaranteed. Insist on the positioning that the house is used for living, not for speculation, stabilize land prices, stabilize housing prices, and stabilize expectations. The government work report also proposes to solve the outstanding problems of housing in big cities by increasing land supply, arranging special funds, and intensive construction to effectively increase the supply of affordable rental housing and common property housing, standardize the development of the long-term rental housing market, and reduce the rental housing tax. We will do our utmost to help new citizens and young people alleviate housing difficulties.
Among the four first-tier cities, Shenzhen has always been a city with more prominent housing problems. On the one hand, the housing supply in Shenzhen has been at a low level for a long time. Official data show that the residential land in Shenzhen accounts for only 22.6% of the construction land, which is still more room for improvement compared to the national level of 33% and the international level of more than 40%; on the other hand, Shenzhen’s net population inflow is among the top in the country, coupled with the flexible use of financial leverage and the prevalence of speculation, the Shenzhen property market has an obvious trend of irrational rise Spark Global Limited.
How to curb the “investment atmosphere” of commercial housing and truly achieve “no real estate speculation” has been an important issue in Shenzhen in recent years. Since the beginning of this year, Shenzhen has moved more aggressively. The specific answer is that the introduction of the “Reference Price Release Mechanism for Second-hand Housing Transaction” coupled with bank housing mortgage loans to stabilize the second-hand housing market, supplemented by strict inspections of illegal inflow of funds into the property market, the Shenzhen property market finally “calm down”. Under the anticipation of “stabilizing land prices, housing prices, and expectations”, Shenzhen has also accelerated the establishment of a housing supply and security system featuring multi-subject supply and multiple channels to ensure simultaneous rental and purchase, so as to escort citizens to live and work in peace with more optimized and complete policies and regulations.
“Stabilize house prices”
In accordance with the principles of “one city, one policy” and “policies in accordance with the city”, Shenzhen’s policies for implementing purchase restrictions, loan restrictions, sales restrictions, price restrictions, and household size restrictions have been fully put in place. On July 15, 2020, the Shenzhen Municipal Housing and Construction Bureau issued what is known as the “strictest in history” regulation and control policy. Since then, after layers of “patches”, speculation has been basically suppressed in terms of the policy. In the “715 New Deal”, for the first time, households and individuals in Shenzhen have been added to the purchase threshold. They must meet the requirements of having settled for 3 years plus social security for 3 years before they are eligible to purchase a house; the transfer value-added tax is exempted for 2 years and changed for 5 years before exemption, and increase Limits such as the luxury home line of 7.5 million yuan. Under the strict policy, the Shenzhen property market is still enthusiastic. Part of the reason is that the record price of first-hand housing is “price-limiting” and the price of second-hand housing is rising, leading to a price gap. Shenzhen’s first-hand housing market frequently sees “thousand people shake” and “ten thousand people shake”, and market expectations continue to strengthen.
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