The real estate market has always been a hot topic of social concern.
Zhaoqing City, Guangdong Province, has issued a blockbuster new policy, starting from May 1, 2024, Zhaoqing City will implement the promotion and sale of commercial housing based on the area of the suite. This new regulation can be called a blockbuster new deal in the property market, which has aroused widespread attention and heated discussions from all walks of life.
Commercial housing in mainland China has always been traded according to the construction area, that is, the area of the public area is "shared" into the total area. There is some controversy about this pricing model, and the actual usable area of the house with the same floor area in the same project may vary greatly, which brings a certain sense of unfairness to buyers.
Abolishing the valuation of the shared area and valuing and selling according to the actual area of the house can undoubtedly make buyers more aware of the actual usable area they are purchasing, and safeguard the legitimate rights and interests of both parties to the transaction.
In this context, the new policy issued by the Zhaoqing Municipal Department of Housing and Urban-Rural Development is in line with the voice of the society and reflects the determination of the government department to regulate the order of the real estate market and protect the rights and interests of home buyers.
The new policy not only clarifies the requirements for promoting sales based on the area of the suite from May 1, 2024, but also proposes a series of supporting measures, such as optimizing and increasing the supply of high-quality housing, promoting real estate enterprises to standardize the calculation method of shared area, and actively promoting the sales of existing commercial housing, aiming to optimize the property market environment from various aspects.
It is worth noting that Zhaoqing City has also optimized the credit policy for individual housing purchases, adjusted the criteria for determining the number of housing units, and increased the amount of provident fund loans to provide certain support for home buyers from the financing side. These measures will undoubtedly further release residents' demand for housing and inject new vitality into the property market.
Experts in the industry generally believe that theoretically, there is no necessary connection between the abolition of the shared area and housing prices.
The trend of housing prices mainly depends on multiple factors such as market supply and demand, investment enthusiasm and expectations for the future. If you simply change the pricing method without supporting system adjustments, it may bring new troubles.
As early as 2002, Chongqing began to implement pricing according to the area of the suite, but until now, the Chongqing property market has not seen major fluctuations. In 2012, Hong Kong abolished the valuation of shared area, and there were some hiccups in the transition period, such as the definition of management responsibilities for public areas.
The practical experience of these areas shows that the abolition of the valuation of the shared area does require a systematic transformation process, and the corresponding adjustment of tax policies, property management systems and other supporting measures can really play a role.
On the whole, the new policy issued by Zhaoqing is undoubtedly a positive signal, reflecting the determination of the government departments to regulate market order and maintain fair transactions. However, to truly achieve the goal of pricing by the area of the suite, it will take a gradual process and require the joint efforts of all stakeholders.
The real estate market is related to the national economy and people's livelihood, and any reform needs to be carried out prudently and prudently. We hope that with the joint efforts of all parties, this new policy can truly take root, bring tangible benefits to home buyers, and promote the long-term healthy development of the real estate market." Let's wait and see, I believe that a more standardized and transparent property market will bring good news to the majority of home buyers.