Shortly after the beginning of 2022, another strange phenomenon appeared in the property market, and the government and the central bank tried to stimulate home purchases from multiple angles. From the government's point of view, multi-pronged two-pronged stimulation of fertility and house purchase, Neijiang implemented "two awards and one supplement", three-child families, buying a house area of less than 90 square meters to reward 10,000 yuan; 90-140 square meters to reward 12,000 yuan; more than 140 square meters to reward 14,000 yuan; Hai'an City on the basis of the market price of two-child families to give 200 yuan per square meter, three-child families to give 400 yuan per square meter of preferential treatment. In some places, in terms of targeting the audience group to attract talents, Wuhu City, Anhui Province, gives a subsidy of up to 10% of the purchase price to eligible young talents; Wuyi County, Zhejiang Province, the first house purchased by foreign employees and their spouses in the county, the amount of housing subsidy subsidy is 30,000 yuan; Jinjiang City, Fujian Province, gives a one-time university settlement subsidy of up to 500,000 yuan for signing a service period for 5 consecutive years, and the doctor gives a maximum of 1 million yuan to buy a house. After nearly 20 months, the central bank cut mortgage rates by 5 basis points for the first time in January this year.
Since the market is so eager for the property market sales to warm up, why not simply reduce the price to sell the house? I think the main reason is actually in 2 points:
First, the purpose is to stimulate the recovery of the property market, not to let house prices fall sharply
From a number of measures to see, the city to promote the property market sales, the purpose is to make the property market warm up, rather than the house price to get down, the government to come up with subsidy policies, the targeted groups have a very large driving force, talent into the city, in addition to promoting the development of enterprises, economic upwards, by this part of the high-end people concentrated into the property market, willing to follow them to buy more people will be more. After the linkage between childbirth and house purchase, many families who continue to wait and see the birth of two and three children, now this insistence may be loosened, some families will choose to have one or two more children, as long as the fertility rate marriage rate goes up, the demand for housing will continue to be released. But if the house price is directly reduced, for consumers, they will not think of buying a house quickly, but on the contrary, they will think of buying after the bottom, the purpose is to avoid being a high-priced house receiver, the more people with this idea, the more difficult the house is to sell, but it will lead to a lot of second-hand houses to depreciate, at that time, it will run counter to the purpose of stimulating the property market to warm up.
Second, a sharp drop in house prices will lead to a vicious circle
Although the housing subsidy looks good for welfare, but from the details, it also needs to meet various conditions to apply, but also need to be reviewed, the actual enjoyment of the people is a small number of groups, such as Hai'an City, is for the two-child and three-child families whose children are under 18 years old as of February 28, 2022, that is to say, beyond this age, even multi-child families can not enjoy, and the subsidy is according to the market price, and the market price is generally lower than the actual purchase price. Although the welfare is limited, it can use this purchase effect to stimulate more people to enter the market, in fact, the government has spent very little money to promote the recovery of the property market.
However, if you directly reduce the price and sell the house, it will affect the entire property market environment. After the sharp drop in house prices, tens of thousands of mainland real estate development enterprises, peer competition to grab customers, the price war will be more and more fierce, at that time, many developers in order to quickly go to the real estate, will come up with lower prices to seize market share, house prices all the way down, the downstream small and medium-sized housing enterprises themselves selling profits are not as good as large housing enterprises, they will be the first to be eliminated. And even small and medium-sized housing enterprises, still larger than other industries of enterprise profit margins, and high profits are also accompanied by high costs and high debt, this part of the housing enterprises will lead to many related enterprises can not get back the arrears, banks will not be able to get back loans, resulting in trillions of bad debt losses. In order to stop losses, banks may restrict loans or stop lending, affecting the interests of a large number of housing enterprises and other enterprises, after the collapse of a large number of enterprises, the unemployed population will soar, and the government's financial burden will double.
Therefore, the purpose of the property market to come up with various benefits is to create a phenomenon of the property market warming up, guide more people to buy houses, promote the virtuous circle of the property market, in fact, this measure from the state's insistence on housing and not speculation can already be seen, the real estate market trend required by the state is stable, it is impossible to promote the purchase of houses on the house price fell sharply, just need to be rational into the market.