Property market: A wave of "new deals" is coming!
On January 30, Shanghai announced that starting from January 31, non-residents with household registration who have paid social insurance or individual income tax for five consecutive years or more in the city can purchase one house in areas outside the outer ring road (except Chongming District).
According to the Financial Associated Press, Suzhou has completely canceled purchase restrictions.
Today, there is news in the market, saying that Suzhou has completely canceled the purchase restrictions, and the purchase of houses is no longer limited to the area and number of units. In this regard, the staff of the Suzhou Real Estate Market and Transaction Management Center told the Financial Associated Press reporter that the news is true.
The property market, a wave of "new deals" rushed in! and the main node of the policy is January 26.
On January 26, the Ministry of Housing and Urban-Rural Development said that it would fully give urban real estate regulation and control autonomy. Cities can adjust their real estate policies according to local conditions.
Just a day later, on January 27, Guangzhou announced that the purchase of housing with a construction area of more than 120 square meters (excluding 120 square meters) would not be included in the scope of the purchase restriction.
The industry generally expects that there will be a new wave of policies in first-tier cities such as Beijing, Shanghai and Shenzhen.
This wave of relaxation of property market regulation has a lot to do with the stock market.
On January 22, A-shares fell sharply after the holiday, and the National Standing Committee listened to the report on the operation of the capital market and work considerations, and took more effective measures to stabilize the market and stabilize confidence.
On January 24, the central bank announced a RRR cut, providing long-term liquidity to the market by about 1 trillion yuan. These policies are an important part of stabilizing the market and boosting market confidence.
The relaxation of property market policies is actually an important part of boosting market confidence.
The reason is simple, real estate investment is an important part of fixed asset investment, and if real estate investment declines, economic growth will be affected. There is a huge industrial chain in the upstream and downstream of real estate investment, the property market is cold, and related industries are affected. Real estate accounts for more than 70% of China's residents' assets, and the cold property market means that household wealth is declining, and residents' enthusiasm for consumption is reduced. The property market is also an important source of money creation.
In December 2023, China's broad money M2 grew by 9.7%, ending a considerable period of double-digit growth.
If the economy is compared to a house, then the property market is the foundation, the stock market is the building above, and the foundation must be stable if the house is to be built well. Therefore, for the stock market to rebound, it is necessary to stabilize the property market.
Next, we can expect that if the stock market and property market have not stabilized, then there will definitely be more and stronger policies coming out.