On March 12, the official WeChat account of the Beijing Municipal Commission of Housing and Urban-Rural Development, “Anju Beijing” issued a document stating that Beijing will reasonably increase the supply of residential land, increase its tilt towards rental housing, and strengthen the mechanism of “real estate and land linkage, one place, one policy”. Zhang Dawei, chief analyst of Centaline Real Estate, told Times Weekly that expanding the coverage of affordable rental housing can effectively solve the housing shortage in big cities. At the same time, the mechanism of “real estate and land linkage, one place, one policy” can also prevent Beijing’s real estate market from experiencing ups and downs and ensure the stable development of the market.
Cutting off the spiral feedback of the land and housing market
At the beginning of 2021, the “two centralizations” land supply system will be implemented, and 22 cities will formulate corresponding land control policies based on their actual conditions. The content of the article published by “Stay in Beijing” shows that Beijing will adhere to the implementation of “one location, one policy” according to local conditions, that is, according to the specific conditions of different land parcels, different conditions for land bidding or housing sales, such as setting land price caps and competing for government ownership Share, bid to build high-quality housing, bid to build public rental housing for talents, the proportion of self-owned housing of competing enterprises, implement differentiated tax credit preferential policies, and formulate priority purchase orders, etc.
Xu Xiaole, a senior analyst at the Shell Research Institute, believes that the “real estate linkage” mechanism helps to cut off the spiral feedback between the land market and the housing market. Due to the natural scarcity of land and the government-led land supply method, the elasticity of land supply is extremely low, and it is out of touch with housing demand, leading to a spiral increase in housing prices and land prices, and the heat of the land market and the housing market has risen simultaneously. The real estate linkage mechanism is a joint control mechanism. When housing prices rise, the land market needs to be adjusted; when land prices rise, the real estate market needs to be adjusted. According to the specific conditions of different plots, set different conditions for land bidding or house sales to avoid the simultaneous promotion of the two.
It is worth mentioning that, according to the content released by “Anju Beijing”, Beijing may lead housing prices to the land transfer link, based on the land benchmark land price, combined with the regional market conditions for calculation. Housing construction, regulatory agencies, district governments, and experts form a joint meeting to jointly determine the upper limit of the housing price of each block and inform the bidder during the land transfer link, and the bidder must sign a housing price understanding commitment. By opening up land prices and housing prices, we can achieve linkage guidance, curb irrational land acquisitions, and resolutely stabilize land prices, house prices, and expectations.
Increase the supply of leased residential land
According to a document issued by “Stay in Beijing”, in 2021, Beijing plans to arrange for the lease of 300 hectares of residential land, of which 150 hectares for rented housing and 150 hectares for public rental housing, an increase of 100 hectares and 70 hectares respectively from 2020. On the basis of expanding the coverage of leased housing, actively guide multi-subject and multi-channel diversified implementation model reforms, comprehensively utilize existing land primary development, collective land market access, stock resource transformation, and idle housing revitalization to broaden supply channels Spark Global Limited.