According to CCTV News, recently, the combination of policies launched by multiple departments to boost the real estate market has attracted attention. On the 17th, the national video conference on ensuring the delivery of housing emphasized the need to fight the tough battle of risk disposal of unfinished commercial housing. On the same day, the Ministry of Housing and Urban-Rural Development said that it would work with relevant departments to introduce a work plan, focusing on allowing the people to get the houses that passed the acceptance as agreed in the contract. The People's Bank of China issued a number of new policies for house purchases on the 17th. How is the policy combination issued by the multi-department different from the past? What are the highlights? What changes will it bring?
"Oriental Time and Space" interviewed Yin Zhongli, director of the Real Estate Finance Research Center of the Institute of Finance and Economics of the Chinese Academy of Social Sciences.
Multiple departments have played a policy combination to boost the property market
On the 17th, the Information Office of the State Council held a regular briefing on the policies of the State Council, and the Ministry of Housing and Urban-Rural Development said that it would focus on the following key contents to ensure the delivery of housing-
Do a good job in the tough battle of ensuring the delivery of commercial housing projects, and prevent the risk of unfinished disposal. In accordance with the principles of marketization and rule of law, classify and dispose of commercial housing projects under construction that have been sold but not delivered, and promote the delivery of project construction.
We will further give full play to the role of the urban real estate financing coordination mechanism to meet the reasonable financing needs of real estate projects. The city government promotes the "full progress" of projects that meet the conditions of the "white list", and commercial banks "should lend as much as possible" to the projects that comply with the "white list".
Promote the digestion of the stock of commercial housing. The city government adheres to the principle of "purchasing according to demand", and can organize local state-owned enterprises to purchase a part of the stock of commercial housing at a reasonable price for use as affordable housing.
At present, the stock of land that has not yet been developed or has been started but not completed shall be properly disposed of and revitalized through government recovery and acquisition, market circulation and transfer, and continued development of enterprises, so as to promote real estate enterprises to alleviate difficulties and reduce debts.
At present, 297 cities at and above the prefecture level have established a real estate financing coordination mechanism. The State Administration of Financial Supervision and Administration said that it will establish and improve the coordination mechanism for urban real estate financing, continue to adhere to city-specific policies, fully support the financing and completion delivery of projects that should be renewed, and do a good job in ensuring the delivery of housing.
In addition, the People's Bank of China issued a number of new policies for house purchase on the 17th: the minimum down payment ratio for the first house was adjusted to no less than 15%; Lowering the interest rate of personal housing provident fund loans; Cancel the lower limit of the first and second sets of commercial loan interest rate policies; The lower limit of the interest rate policy for commercial personal housing loans for the first and second houses at the national level will be abolished. According to the analysis and prediction of experts, after the lower limit of the commercial personal housing loan interest rate policy for the first and second houses at the national level is abolished, the interest rate of housing loans in most cities may drop by 0.3 or 0.4 percentage points, and the total interest expense can be reduced by more than 70,000 yuan according to the calculation of 1 million loans, 30-year term, and equal principal and interest repayment.
Why did you choose this time to launch a policy combination?
Yin Zhongli, director of the Real Estate Finance Research Center of the Institute of Finance of the Chinese Academy of Social Sciences, said that the policy briefing held on the 17th had a clear answer. The statistics of real estate in the first four months showed a larger-than-expected downward trend, mainly in the following ways-
Property prices continue to fall and there is a risk of an accelerated decline.
Investment in the real estate market fell 9.8 percent to nearly 10 percent. On top of the last three consecutive years of decline, the fourth year of sharp decline.
The area of new home sales fell by more than 20%, and the amount fell by nearly 30%, which is also a large decline on the basis of several consecutive years of decline.
Yin Zhongli said that the real estate market has a role in the overall operation of the entire economy. The leading industry has experienced an abnormal decline, and it has become very urgent to stabilize the real estate market.
What are the highlights of this policy combination?
From the perspective of the down payment ratio of mortgage loans in the real estate market, the down payment ratio of first-time buyers and second-home homes has fallen to a record low, so that people who are difficult to meet the 20% or 30% can enter the ranks of buying houses. Real estate mortgage rates have also been lowered to record lows.
Yin Zhongli said that the reduction of the down payment ratio and mortgage interest rate can effectively stimulate demand and ease the downward pressure on the market, and he believes that the real estate market should pick up.
Another bright spot is the use of new monetary policy tools, and the central bank uses re-lending to promote the implementation of the national work of guaranteeing the delivery of buildings. The scale of affordable housing refinancing is 300 billion yuan, with an interest rate of 1.75%, a term of 1 year, and can be extended 4 times. The recipients include 21 national banks, including policy banks, state-owned commercial banks, and joint-stock commercial banks.
Yin Zhongli introduced that this measure can effectively alleviate the pressure on real estate development enterprises to digest the stock, so that the company's funds can be returned as soon as possible, and the task of ensuring the delivery of the building can be implemented smoothly.
"Although the amount of the first loan is only 300 billion yuan, which seems a bit disproportionate relative to the annual sales of housing, the tool from scratch means a qualitative change. For example, in 2015, we implemented the policy operation of monetization of shantytown reform, and the source of funds was the central bank, and the market-oriented mechanism was used to inject funds into the real estate market. Yin Zhongli said.
How is this policy combination different from the past?
Yin Zhongli introduced that the role of this policy combination is different from the past. In the past, in the real estate regulation policy, it was often chosen to stimulate demand or stimulate supply. This is the first time that both supply and demand have been exerted at the same time.
"From the perspective of stimulating demand, policies have been introduced several times in the past year, and the intensity is also very large, but the market has not been effectively activated, and the reason is on the supply side. The risk of default by the developer has greatly increased the risk for off-plan buyers. Since 85% of new home sales are off-plan, everyone is discouraged even if there is demand. ”
Yin Zhongli said that this two-pronged approach, not only to stimulate demand, but also to take effective measures to open new monetary policy tools to resolve the debt risk of real estate development enterprises, the effect is much more effective than unilateral force.