Let the property market stand up, the five major state-owned banks urgently took action to dock more than 8,200 real estate projects

Since the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision and Administration held a meeting and issued a document requiring cities and major banks to implement the real estate financing coordination mechanism and set up a special team, financing support for real estate projects under construction has become the top priority of major banks, especially large state-owned banks. Even during the Spring Festival of the Year of the Dragon, the relevant credit staff of large state-owned banks did not take a complete holiday, but took the initiative to connect with the projects under construction of real estate enterprises in accordance with the unified deployment, and included the projects that met the requirements into the "white list" management, so as to provide timely financial support.

During the Spring Festival holiday in the Year of the Dragon, starting on the second day of the Lunar New Year, the six major state-owned banks of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank have successively announced the exhibition of taking the initiative to connect with the projects under construction of real estate enterprises. Judging from the published data, as of February 15, more than 8,200 projects have been docked. As for other joint-stock banks, such as Industrial Bank, China Merchants Bank, China Everbright Bank, China CITIC Bank, etc., they are also actively docking projects in accordance with the requirements of the State Administration of Financial Regulation. Taking China Everbright Bank as an example, as of February 15, 2,622 projects have been docked.

It can be seen that in the Year of the Dragon, for real estate companies, "money" is no longer a problem.

Why so much attention is paid to real estate now, it has to do with the importance of real estate in economic development. In 2022, the real estate industry will account for 6.1% of the country's GDP, the construction industry will account for 6.9%, and the real estate industry in a broad sense will account for nearly 13% of GDP, which is obviously a well-deserved pillar industry of economic development.

In the past two years, the supply and demand of real estate have shrunk simultaneously, resulting in a decline in the scale of the industry and a decline in its contribution to the national economy. At the critical moment of economic transformation and upgrading, and in the important period of stability and upward progress of internal and external dual circulation, it is necessary to stabilize real estate. Judging from the real estate investment, new construction area and land transfer area in recent years, there are too many links and too many departmental funds that need to be obtained from land transfer, and need to be obtained from various taxes and fees for real estate. Take the relevant data of real estate from 2020 to 2023:

From 2020 to 2023, the development investment will be 14.14 trillion yuan, 14.76 trillion yuan, 13.29 trillion yuan, and 11.09 trillion yuan respectively, from rising to falling;

From 2020 to 2023, the real estate construction area will be 9.268 billion square meters, 9.754 billion square meters, 9.050 billion square meters, and 8.384 billion square meters respectively, rising to decreasing;

From 2020 to 2023, the area of new real estate construction will be 2.244 billion square meters, 1.989 billion square meters, 1.206 billion square meters, and 954 million square meters respectively, with a continuous sharp decline;

From 2020 to 2023, the land transfer area will be 255 million square meters, 216 million square meters, 101 million square meters, and 80 million square meters (estimated) respectively, with a continuous sharp decline;

From 2020 to 2023, the real estate transaction area will be 1.761 billion square meters, 1.794 billion square meters, 1.358 billion square meters, and 1.117 billion square meters respectively, from a slight increase to a large decline.

See, from development investment, construction area, new construction area to land transfer area and sales area, all of them are in a downward trend. As the leading industry and pillar industry of the real estate industry, and the proportion of real estate in a broad sense is nearly 13% of GDP, timely rebuilding real estate confidence and restoring the order of real estate development and transactions should become the first priority of national economic management! Therefore, we have seen that the Ministry of Housing and Urban-Rural Development, the Central Bank, and the State Administration of Financial Supervision have taken timely action to set up a special working group for the real estate industry for the first time and establish a real estate financing coordination mechanism for the first time. After this kind of large-scale operation, the spring season of real estate may be just around the corner.

At the same time, if we add the demand for migratory housing after the relaxation of household registration in various cities and the demand for improved housing purchase of nearly one billion square meters per year (the current housing stock is about 50 billion square meters, calculated at 2% per year, the old houses are eliminated), under the stimulation of low mortgage interest rates, low down payments and low deposit interest rates, real estate has to stand up and take a few steps.