Is allowing developers to defer the payment of land transfer fees to encourage developers to "empty gloves and white wolves"?
According to media reports, the Nanping Municipal Housing and Urban-Rural Development Bureau and other five departments recently jointly issued the "Notice on Printing and Distributing Ten Measures to Promote the Stable and Healthy Development of the Real Estate Market in Our City". The notice pointed out that in order to alleviate the pressure on real estate projects to obtain land funds, the relevant provisions of article 3 (1) of Nanzheng Zong [2016] No. 233 document are adjusted, that is, the full payment period of land transfer fees shall not exceed 6 months in principle (all localities may appropriately extend the payment period according to the actual situation, but the maximum period is not more than one year); the land transfer fee can be paid in installments, and not less than 50% of the land transfer fee is paid within 30 days from the date of signing the contract, and the balance is paid in full and in a timely manner according to the period agreed in the contract.
This is not a good policy to promote the healthy development of the real estate market, nor is it simply to relax the regulation and control policy, nor is it a performance of promoting economic transformation, but to distort and deteriorate the policy, and even let the policy return to the early stage of the real estate market liberalization, and it feels more like encouraging developers to "empty gloves white wolf".
You know, when the real estate market has just been liberalized, why so many people are desperate to jump into the real estate market and go to the gold of the real estate market. Because these people want money and no money, no technology, no qualifications, what they have is the courage to borrow money and get land.
Because, as long as you can borrow money to get the first piece of land, everything in the future will be completely opened. Therefore, they borrowed money from relatives and friends to get the first piece of land, and this land is like a hen that lays eggs, quickly opens the door to money for the land taker, mortgages the land, and then uses the loan to repay the debt, and uses the loan to complete the house design, etc., and then pre-sells the house in the design, after the pre-sale funds are obtained, part of it is used to build a house, and part of it goes to get the land, forming a "virtuous circle". Most of the so-called big developers do this.
And today's Nanping, unexpectedly introduced a policy that allows developers to postpone the payment of land transfer fees, no doubt to let those developers who are good at "empty gloves white wolves" pick up the old tricks of "empty gloves white wolves" again, use very little money to get land, and then use the land to mortgage financing. Now, in order to safeguard the interests of housing buyers, the credit policy of commercial banks for developers has also been relaxed, which is conducive to developers continuing to use the "empty glove white wolf" method to obtain land. In this way, is it not equivalent to continuing to help developers accumulate risks and accumulate risks?
If the developer does not even have the ability to get the land, he must postpone the payment of the land transfer fee, and how can he have the ability to build a house? Even if the land is taken through the deferral of the land transfer fee, and then through the pre-sale, the buyer's money is obtained, and after the pre-sale payment is used to pay the land transfer fee, where will the construction funds come from? Whether the government can continue to allow developers to pay other fees first, and continue to facilitate developers to "empty gloves white wolves". If the developer's funds are still insufficient, should the government take money from the treasury to support the developer's construction? As a result, the entire real estate market is also chaotic.
The developer has no money and can not take the land. Some government projects can also be temporarily not developed and not built, so why do we have to encourage developers to "empty gloves and white wolves" to get land? The result of this is most likely to be to lose sight of one or the other, and it is likely to accumulate too many risks in the future real estate market. Such a risk will one day cause the local government to suffer greatly. Today's developers are not how to get land, but to reduce debt, resolve risks, and maintain the stability of the real estate market.
This policy in Nanping, Fujian Province, has formed an extremely bad effect on the real estate market, which will make the real estate market regulation and control for more than ten years abandon the previous achievements, and this policy must be banned. Local governments must not continue to rely too much on the real estate market for the sake of temporary performance needs, and continue to want to use land transfer funds for urban construction, even regardless of the risks and harms of doing so.
The central government has repeatedly stressed the need to increase support for the real economy and further support entity enterprises, especially small and medium-sized enterprises. From the perspective of Nanping's approach, it is obvious that the focus of work has not shifted to the real economy, but still has a lot of feelings for real estate, is very dependent, and wants to create political achievements through real estate. If all the limited policies are transferred to real estate, then the real economy will not be able to get real support and help, and the local economy will fall into a vicious circle.
Perhaps, without real estate, Nanping's economy will decline. However, if the real economy is good enough, if the government's support for the real economy is strong enough, I believe that the economic decline is only temporary, and it will soon make up for the gap left by real estate dependence because of the benign development of the real economy. On the contrary, if you continue to rely too much on real estate, then the structure of the economy will become worse and worse, the pressure of economic transformation is also increasing, I don't know whether the Nanping Municipal Government has considered this problem, whether it is soberly aware that the stable development of the economy, or to take the real economy as the main body, to fully rely on the development of real estate, rather than real estate. In particular, ways like encouraging developers to "empty gloves and white wolves" should be resolutely abolished. Otherwise, the risks are too great and the harms are too great.