Continue to rescue the market! Experts from more than 50 cities in China support the housing replacement policy and more cities will follow suit within the year.

China continues to increase its efforts to rescue the housing market, and more and more cities across the country have implemented the \”old for new\” policy to stimulate buying. According to statistics from the China Index Research Institute, more than 50 cities have participated in the policy as of Monday (6th). Industry insiders believe that the current housing market The old-for-new policy is still in the exploratory stage, and more cities will introduce relevant supporting policies this year to further stimulate demand.

China continues to increase its efforts to save the housing market. More and more cities across the country have implemented the \”old-for-new\” policy to stimulate buying. According to statistics from the China Index Research Institute, as of Monday (6th), more than 50 cities have participated. Industry insiders believe that the current housing trade-in policy is still in effect. During the exploration phase, more cities will introduce relevant supporting policies this year to further stimulate demand release.
Shenzhen and Wuhan are the latest major Chinese cities to join the ranks. The former said on Monday that it will support real estate companies with development projects in Shenzhen and related real estate agencies to carry out \”old-for-new\” and \”old-for-new\” work on commercial housing. Real estate companies are not subject to the restrictions of legal entities\’ house purchase policies when acquiring the old houses of people who are changing their houses. The Shenzhen Housing Provident Fund Management Center will provide convenient services for house transactions and optimize the \”transfer with mortgage\” process for commercial housing to improve the convenience of real estate transactions.
Transfer with security means that the transfer, re-mortgage and issuance of a new loan can be completed without the need to repay the old loan in advance or cancel the mortgage.
On the same day, Wuhan also issued 10 new policies to stabilize the housing market. Among them, it launched a new transaction model of \”selling old and buying new\”. For families who sell their houses before the end of the year and buy a new house within six months or sell their own house within one year after buying a newly built commercial house, they will be given a surcharge on the sales fee. 1% value tax tax subsidy.
In addition, financial institutions are organized to provide long-term low-interest loans to encourage real estate companies, real estate brokerage institutions and home buyers to work together to achieve \”first selling\” of old homes and \”preferential purchase\” of new homes.
In addition, the Shanghai Real Estate Industry Association and the Shanghai Real Estate Brokerage Industry Association jointly launched the \”Old for New\” campaign for commercial housing last Friday (3rd), mainly targeting people who plan to sell second-hand houses and buy new houses. The first batch of participating real estate companies included more than 20 real estate agents. There are nearly 10 institutions.
Wuxi also stated last Wednesday (1st) that it would increase support for the \”sell old and buy new\” policy. Those who sold their own houses within the urban area of ​​Wuxi after New Year\’s Day last year and purchased them within the urban area starting from May 1, 2024 Families building new commercial housing will receive policy support.
Chen Wenjing, market research director of the Zhongzhi Research Institute, believes that there are two main ways to support \”old-for-new\” support in various places. First, real estate companies and real estate agents will give priority to selling old houses. If the old house is sold within a certain period, new houses will be purchased according to the process. Developers or state-owned assets platforms purchase old houses and use the proceeds from the sale of old houses to purchase designated new houses. This method has been the mainstream of housing \”trade-in\” since this year.
In addition, providing certain home purchase subsidies to individuals or families who sell their own houses and buy new ones is also an important measure taken by local governments to further promote the \”replacement of old houses with new ones\”.
Zhao Ke, chief analyst of the real estate industry at China Merchants Securities, pointed out that some cities such as Shenyang and Xuzhou directly provide subsidies or deed tax subsidies for \”trade-in\” home buyers. Some cities stipulate that second-hand houses can be used to offset the purchase price of new houses or directly acquire second-hand houses such as Taicang, Suzhou, Zhengzhou, Nanjing, and other cities such as Shaoxing, Shenzhen, and Shanghai mainly mobilize market entities to provide \”trade-in\” home buyers with support measures such as no obligation to terminate the new home purchase contract within a certain period, and real estate agency agencies to give priority to the sale of second-hand houses. Some cities also provide support measures such as Provide preferential measures such as down payment ratio and interest rate.
Liu Yi, chief analyst of the real estate industry at Changjiang Securities, pointed out that judging from the cities that have launched the \”old-for-new\” housing policy, it is mainly third- and fourth-tier cities. First- and second-tier cities such as Shenzhen, Shanghai, Zhengzhou, Nanjing, Wuhan, and Jinan also clearly support it. The current housing inventory depletion cycle in most cities is relatively high.
According to the analysis of China\’s \”Securities Times\”, if the real estate companies and real estate agents give priority to the old houses for sale, and the old houses are sold within a certain period, the new house will be purchased according to the process. If it cannot be sold, the deposit for the new house will be fully refunded.
Although this method is more convenient and saves transaction costs, there is no guarantee that the old house will be sold.
In addition, if a real estate company or a local state-owned enterprise purchases an old house and uses the sales proceeds to purchase a designated new house, even if the old house is not afraid of not being sold, there may be problems such as the purchase price being lower than expected and the area where the home buyer is located is not within the acquisition scope. You need to carefully check the local area. Specific terms of the policy.
Although various places have intensively implemented the \”replacement of old with new\” policy, Chen Wenjing still believes that it is currently in the exploratory stage of the policy and the overall effect is not yet obvious.
Wang Xiaoqiang, chief analyst of Zhuge Data Research Center, said that the current development of the housing market cannot simply start from encouraging demand, but should focus on both supply and demand. \”Replacing the old with the new\” involves both supply and demand.
Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, pointed out that in the future, it may become an important way to meet the demand for rental or allotment affordable housing by digesting existing real estate. The key is to follow marketization, legalization and Business sustainability principles.
Industry insiders also predict that more cities will introduce \”old-for-new\” related supporting policies this year.

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