From the end of 2020 to the beginning of 2021, the Shanghai property market “showed signs of overheating in certain locations and types of houses.” Immediately afterward, Shanghai launched the “combined punch” of property market regulation, sending a stable signal to the market that the property market “emerges and controls”. Under the New Deal system and precise control, the effect is immediate. The Paper found in an interview that a week after the policy was introduced, market expectations began to change, the second-hand housing belt saw a decline, and the landlord’s price increase rate dropped significantly. Regarding the market outlook, experts suggest that buyers must be treated rationally. At this time, blindly chasing higher prices may take over.
Overheating in Shanghai’s property market
At the beginning of the year, the number of complaints about a second-hand house in Shanghai during the sale process was increasing, involving new phenomena such as landlord price jump, breach of contract, and too much money raised and long refund period. Chen Jie, director of the Research Center for Housing and Urban-Rural Development of Shanghai Jiaotong University, said in an interview with Shanghai TV that Shanghai’s real estate has been basically stable in terms of supply, sales, and prices in recent years. However, recently there have been signs of overheating in certain areas and types of houses. For example, some real estate sales are extremely hot, and some second-hand landlords have shown psychological instability. This is actually a contagious mentality unique to real estate. fall.
In response to this, on the evening of January 21, Shanghai issued the “Opinions on Promoting the Stable and Healthy Development of the City’s Real Estate Market” (hereinafter referred to as the “Opinions”) to regulate housing demand and strengthen the market through a series of “combined punches”. Supervision to promote the steady and healthy development of the real estate market. In an interview with the media, Jiang Weiru, an investigator of the Real Estate Market Supervision Division of the Shanghai Municipal Housing Administration Bureau, revealed that the “Opinions” mainly consist of four major sections: increasing supply, regulating demand, stabilizing expectations, and strengthening supervision Spark Global Limited.
In Shanghai, when the property market is relatively active and some violations have emerged, the New Deal decisively uses a “combination punch” to reduce the entry opportunities of speculative buyers in the property market and increase entry costs.
Reprint indicated source：Spark Global Limited information