The "national team" is in a hurry to save the city!

Guanghua Building Review

2024-05-17 20:24Published in Hubei First-hand Media, Chairman of Chutian New Media, Co-founder of Chutian New Media

When the conventional methods of rescuing the property market "fail", it is necessary to "make a big move".

On the morning of May 17, the relevant person in charge of the State Council said at a press conference that the current real estate market continues to be in a period of adjustment, and will coordinate the study of policies and measures to digest the stock of real estate and optimize the incremental housing.

In the afternoon, the central bank issued three new policies in a row, with unprecedented intensity. The down payment loan ratio has fallen to a record low. The central bank issued 300 billion yuan of reloans for affordable housing. The Ministry of Housing and Urban-Rural Development is more meticulous in ensuring the delivery of housing.

On May 14, Hangzhou Lin'an issued a policy for the local government to purchase a number of commercial housing for public rental housing.

This is the beginning of the national team's next game. This model of "government repossession" will be replicated by other cities.

Nowadays, there are two main modes of housing acquisition by the government and urban investment companies: batch "large orders" to collect new houses, and retail investors to buy the old for the new.

At present, at least 15 cities have launched "trade-in" housing collections. In Wuhan, Qiaokou, Hanyang and other areas, "old for new", there are families who have successfully changed houses.

This series of measures can be described as killing four birds with one stone.

Real estate is a policy-sensitive industry.

The capital market is the first to benefit. Stocks in the industrial chain such as real estate, building decoration, and building materials have risen sharply. In the morning market on May 17, stocks in the real estate services and development sector rose collectively again.

Especially at present, when some real estate companies such as Shimao are delisted, and the market value of large real estate companies shrinks, new policy concepts are needed. When shareholders think that real estate is a sunset industry, it takes a few rounds of daily limits to get them out.

For local governments, speeding up the destocking of new houses can continue to sell land. The friendliness of the rental market retains more talent. Capital, talent and industry are the three major elements of a city's future development.

For families who improve home buyers, the trade-in of the old opens up the closed loop of transactions between second-hand houses and new houses, and helps more families improve their living environment. If the house can be sold, then there will be money to buy a new house.

For renters, it is possible to realize the freedom of renting, to rent a more central house at a cheap price, and to stay in the city. I used to rent a house, the location was biased, the price was expensive, and the house was old. In the future, if you rent an apartment, you will find a local government management company.

The government's bottom-out housing collection, the total amount of storage is limited, and it is more about giving confidence to the market from the perspective of expectations, and the most direct is the stock market. If you want to fundamentally change the current situation of supply and demand imbalance, you still have to let housing prices have upward expectations, and people are willing to spend money to buy houses after seeing "sincerity".

From the old for the new to the government's repossession, the ultimate goal is to stabilize the market and strengthen expectations. A series of recent real estate policies, from high-level to local, focus on protecting the property market and stabilizing expectations.

On May 17, data from the National Bureau of Statistics showed that in April, the prices of new and second-hand houses in 70 large and medium-sized cities continued to decline.

The government's housing collection is not the last blockbuster policy, nor is it the heaviest one. However, it all has to be done quickly, and we can't wait any longer, so don't miss the opportunity.

2014-2024 is a 10-year cycle of the property market. This cycle also starts with the bailout, crazy, high, low, bottom, then bailout, and then destocking, just a cycle.

At present, if you want to save the property market and stabilize the economy, it is far more than the national team to collect the house, there are more tricks, tricks, and big moves that kill multiple birds with one stone!

Text: Yang Guanghua (real estate writer)

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