According to statistics from The Paper, as of now, at least 68 cities have launched "trade-in" related policies. The "old for the new" city has been upgraded to first-tier cities; At the same time, after April, the "old for new" policy is also increasing.
After a period of implementation, what is the effect of "trade-in" in various cities?
There are significant differences in the model from place to place
For the current stage of "exchanging the old for the new", the real estate "trade-in" is still in the pilot stage of city-specific policies, and the models vary greatly from place to place.
There are many ways to "trade in the old for the new", and the initial model is the "consignment purchase of new" model that locks in new houses in advance and gives priority to selling old houses; The second is the repurchase method, some cities use financial subsidies to encourage real estate enterprises to purchase old houses to achieve the effect of selling new ones, state-owned enterprises to purchase for affordable housing, and government to purchase for resettlement housing; Third, in order to activate the housing market, some cities have specially introduced supporting measures of "exchanging the old for the new", giving buyers exclusive discounts and canceling the "sales restrictions".
The most unique is the "Zhaoqing" model, which can be "renewed" without selling the house. Zhaoqing City, Guangdong Province, for the first time, proposed the "old insurance conversion", that is, the owner of the stock housing can hand over the government to rent through the form of "old conversion", so as to obtain a certain number of years of rent paid by the government-designated agency, and use all of it to purchase commercial housing.
Cities that promote "trade-in" have been extended from the original third- and fourth-tier cities to first-tier cities. On May 3, Shanghai Real Estate Industry Association and Shanghai Real Estate Brokerage Industry Association actively responded to the 5th Shanghai "55 Shopping Festival" and jointly proposed to launch the "old for new" activity of commercial housing in Shanghai.
Prior to this, Shenzhen had already taken action, and the model was similar to Shanghai's, all of which were "consignment sales and new purchases". According to Shenzhen News Network on April 23, the Shenzhen Real Estate Association and the Shenzhen Real Estate Intermediary Association jointly launched the "Xin Home" activity for commercial housing.
In an interview with a reporter from Yangcheng Evening News, the person in charge of the relevant association in Guangzhou also revealed that he is currently investigating and collecting relevant intentions from developers, and is also exploring operability.
The result? More than 3,600 people signed up for 2,000 pilot houses in Nanjing
From the perspective of implementation effect, the "trade-in model" is being promoted, and the scope of implementation is also expanding.
Take Zhengzhou, which was the first to launch the "trade-in model", as an example. According to the news released by Zhengzhou Chengfa Anju Co., Ltd., since the official opening of registration on April 20, 30 groups of people who have changed houses have signed an acquisition agreement in just 10 working days, and 10 groups of people have been "buying new" at the same time.
At a ventilation meeting on April 26, Yu Tong, executive director and general manager of Zhengzhou Chengfa Anju Company, introduced that up to now, a total of 413 calls from the masses have been answered, 38 visits have been received from the masses, and 368 online applications have been registered. After the preliminary review, there were 194 houses that met the acquisition conditions, and a total of 27 houses were confirmed by customers who confirmed their intention to change houses.
On May 10, the Zhengzhou Housing and Real Estate Association first issued the "Announcement on Comprehensively Carrying Out the Work of "Selling the Old and Buying the New and Exchanging the Old for the New" for Second-hand Housing in Zhengzhou, announcing that the pilot work of "selling the old and buying the new and exchanging the old for the new" ended nearly a month ahead of schedule and was fully implemented in the built-up areas of the city.
At the same time, Zhengzhou Chengfa Anju Co., Ltd. further optimizes the conditions for acquiring houses: the nature of the houses is ordinary commercial housing, the real estate certificate or real estate ownership certificate has been obtained, and the date of completion of the house has not exceeded 20 years; The area where the house is located is the eight districts of the city, and priority is given to the acquisition of houses within the Third Ring Road, and the houses outside the Third Ring Road must meet the requirements of job-housing balance and complete supporting facilities as the use conditions of affordable rental housing; The building area of the house shall not exceed 120 square meters (inclusive), etc.
According to the poster news, as of May 10, Zhengzhou's second-hand housing "trade-in" pilot work network registration platform has received a total of 504 applications, 255 sets of houses that meet the acquisition conditions after the preliminary examination, and a total of 104 houses have confirmed the intention of changing houses after on-site negotiations with the people who change houses. According to Zhengzhou Daily, 11 of them have signed a subscription agreement with the developer to purchase newly built commercial housing.
According to the "Zhengfang Transaction" website, as of 13:13 on May 15, there were 69 real estate projects in the "trade-in new house" section of the website, and a total of 1,700 houses in the "trade-in second-hand house" section; According to Poster News, as of 16:25 on May 11, there were a total of 885 houses in the "trade-in second-hand housing" section.
There are two ways of Zhengzhou's "selling the old and buying the new, and exchanging the old for the new": one is that the government designates Zhengzhou Urban Development Group Co., Ltd. as the acquisition body to purchase second-hand housing, so as to promote the masses to purchase improved new commercial housing through "selling the old and buying the new, and exchanging the old for the new", and plans to complete 5,000 units in the main urban area throughout the year. At the same time, the government policy encourages the masses to "sell the old and buy the new, and trade in the old for the new" through market transactions, and plans to complete 5,000 sets throughout the year.
Outside of Zhengzhou, the response of the urban market that adopts the trade-in model has also been relatively positive, and the subscription of project visits has improved.
On April 2, Wuxi Liangxi Urban Development Group Co., Ltd. took the lead in issuing an announcement on the "trade-in" of commercial housing in the city. In Liangxi District, the designated entities of Liangxi Urban Development Group will repurchase the stock of second-hand commercial housing of residents on a trial basis, and residents will purchase new commercial housing in the projects for sale under the holding of Liangxi Urban Development Group.
According to the news released by Liangxi Urban Development Group, one month after the release of the "old for new" activity, the first batch of transactions has exceeded 40 sets, and the conversion rate has exceeded 85%.
On May 11, the 2.0 version of the "trade-in" of Liangxi Urban Development Group's commercial housing was officially released, and the scope of "trade-in" was expanded.
According to the WeChat public account "Nanjing Real Estate Micro Government", in order to support the demand for improved housing purchases, on April 27, Nanjing Anju Construction Group Co., Ltd. announced the launch of the "old for new" pilot project for stock housing in the six districts of the main city, with a total of 2,000 pilot houses in the first batch. The purchaser may replace one or more sets of newly built commercial housing with one or more sets of stock housing, and the total replacement price shall not be higher than 80% of the total price of the newly built commercial housing purchased. The purchase price of housing stock is based on the appraised price.
According to the report of "China Real Estate News", from April 27 to May 5, 3,610 groups of WeChat mini-program "Ning Changxin" platform registered their intention to sign up, and 2,947 groups met the conditions in the preliminary examination; A total of 1,705 groups visited the project site for sale, and 322 groups paid the new house intention to pledge funds.
Large-scale government procurement and storage has increased market attention
CRIC real estate research said that the "old for new" is intended to open up the replacement chain of first-hand and second-hand houses and promote the release of improved demand. At the same time, "trade-in" is the policy starting point for digesting the stock of real estate, in response to the Politburo meeting's call for "destocking". On April 30, the meeting of the Political Bureau of the Central Committee set the tone for real estate: it is necessary to combine the new changes in the supply and demand relationship of the real estate market and the new expectations of the people for high-quality housing, coordinate the study of policies and measures to digest the stock of real estate and optimize the incremental housing, and pay close attention to the construction of a new model of real estate development to promote the high-quality development of real estate.
The real estate research team of Huatai Securities said that since April this year, the policy of "exchanging the old for the new" has increased. From the second half of 2023 to the first quarter of this year, the introduction of the housing "trade-in" policy is mainly in second- and third-tier cities, and the model is mainly based on government storage and housing exchange subsidies, among which the government purchase and storage model can basically only exchange for new houses developed by the acquirer, and most of them do not specify the number of units to be acquired, or the number of units is relatively small (50-500 units), so it has not had a great impact. After Zhengzhou introduced the policy in April this year, due to the relatively large intensity (5,000 sets of government storage + 5,000 sets of optimized transactions, and all of them are given subsidies for changing houses), and allowing the purchase of projects developed by other real estate companies, the market attention began to increase, and then Nanjing also introduced a 2,000 sets of government storage plan.
Huatai Securities believes that after the Politburo meeting in April set the tone, the urban scope and policy intensity of real estate "trade-in" are expected to increase, and exert greater influence on balancing real estate supply and demand by directly consuming inventory.