On May 17, 2024, the four blockbuster policies of the property market were released at the same time. What is the impact of the introduction of these policies on the real estate market?
Hebei has lowered the interest rate on housing provident fund loans
On May 19, the Department of Housing and Urban-Rural Development of Hebei Province announced that according to the Notice of the People's Bank of China on Reducing the Interest Rate of Personal Housing Provident Fund Loans, from May 18, 2024, the interest rate of personal housing provident fund loans will be reduced by 0.25 percentage points, and the interest rates of the first set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years will be adjusted to 2.35% and 2.85% respectively. The interest rate of the second set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years will be adjusted to not less than 2.775% and 3.325% respectively. For personal housing provident fund loans that have been disbursed before May 18, 2024, the new interest rate will be implemented from January 1, 2025. New personal housing provident fund loans issued after May 18, 2024 (inclusive) will be directly executed according to the adjusted new interest rate.
At present, all parts of our province have been adjusted in place according to the requirements. After the adjustment of the interest rate of the housing provident fund loan, with a loan amount of 1 million yuan, a loan term of 30 years, and the purchase of the first house with equal principal and interest repayment as an example, the buyer will save nearly 50,000 yuan in interest, and the monthly payment will be reduced by about 135 yuan.
The central bank optimizes housing finance policies
In addition to the provident fund, on May 17, the central bank and the State Administration of Financial Supervision jointly issued an adjustment to the minimum down payment ratio for personal housing loans.
Tao Ling, Deputy Governor of the People's Bank of China: Adjust the minimum down payment ratio for the first house from no less than 20% to no less than 15%, and the minimum down payment ratio for the second house from no less than 30% to no less than 25%.
It is understood that this is a historical low in the down payment ratio of commercial personal housing loans. In addition, the central bank also issued the "Notice on Adjusting the Interest Rate Policy of Commercial Personal Housing Loans".
Tao Ling, Deputy Governor of the People's Bank of China: Cancel the lower limit of the interest rate policy for personal housing loans at the national level. The interest rate of the first home and the second home loan will no longer set the policy lower limit, and the mortgage interest rate will be marketized. After the adjustment of the above-mentioned down payment ratio and mortgage interest rate policy, all localities can independently determine the minimum down payment ratio and the lower limit of the mortgage interest rate for the first and second homes in their jurisdictions according to the city's policies, and may no longer set the lower limit of the interest rate.
Industry insiders estimate that after the notice is implemented, the housing loan interest rate in most cities is expected to fall by 0.3 to 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 yuan loan, 30 years, and equal principal and interest repayment.
In addition, the central bank also announced the establishment of 300 billion yuan of affordable housing re-loans, to encourage and guide financial institutions in accordance with the principle of marketization and rule of law, to support local state-owned enterprises to purchase unsold commercial housing at a reasonable price for placement or rental of affordable housing, which is expected to drive bank loans of 500 billion yuan.
So what changes will these combinations bring to the current property market?
Financial commentator Xu Junming: We have seen that this combination is actually not a simple raid, but has been slowly introducing some policies since last year, including the year before last. This time, including the arrangement of supporting policies, it is actually a continuation and expansion of the previous policy, or to meet the needs of the entire market, rigidity and improvement. In addition to this, we can see that these policies give a lot of discretion to many places. In the future, I believe that with the change of the entire local economic structure, there will be some structural opportunities in some cities, such as these cities can better develop their core industries and provide better employment opportunities, so their real estate will adapt to its economy, and there may be some opportunities.
Yi Chengdong, a professor at the School of Management Science and Engineering, Central University of Finance and Economics: At present, there is a rigid demand in the market, and there is a desire to buy a house, but because the sales volume and price are declining, they are still waiting and seeing. As the volume and price of transactions fall, developers will also have difficulties in the capital chain, and the market will have a downward tightening cycle. At this time, the government needs to adopt some policies to break this cycle and make the market stable and healthy.
Yan Yuejin, research director of the E-House Research Institute: These policies are directly related to the digestion of new houses, second-hand houses, etc. in our market. Including our housing buying and selling market, market sentiment, real estate sales and financial situation, etc., can have a very positive impact. It will have a positive effect on the boost of our entire market.
Four departments: do a good job in ensuring the delivery of housing
On May 17, the Information Office of the State Council also held a policy briefing, at which the heads of relevant departments said that they would do a good job in ensuring the delivery of housing.
Dong Jianguo, Vice Minister of the Ministry of Housing and Urban-Rural Development: The city government should comprehensively investigate the city's commercial housing projects under construction and sold, carry out a major doxxing, lock in projects that are difficult to deliver, establish project accounts, and promote project construction and delivery in accordance with the principles of marketization and rule of law.
Feng Kui, Vice President of the China Association for Regional Science: The requirements of the guaranteed delivery policy cover a series of links from receiving the house, moving in, obtaining the certificate, etc. It is the interests of our buyers to ensure the delivery of housing, the economic order of the entire real estate market, and ultimately the confidence of real estate development.
(Wang Guoyan, Qian Lezhe, Tang Hongfeng report)
Loading...
Editor-in-charge: Wang Guoyan
Editor-in-chief: Tang Hongfeng, Qian Lezhe
Producer: Xu Hui