At present, China's economy is facing the triple pressure of "shrinking demand, supply shock, and weakening expectations". The Central Economic Work Conference announced at the end of last year that efforts should be made to stabilize the macroeconomic market and keep the economy operating within a reasonable range.
Under this premise, the mainland's regulation on real estate began to relax.
After several years of in-depth regulation, the mainland real estate market is gradually showing signs of weakness, and the supervision on the financing side of real estate enterprises has also doubled the pressure on enterprises.
According to data from real estate research firm Kerrey, in 2021, the year-on-year growth rate of sales of the country's largest 100 housing companies will be -3.2%, the first negative growth in seven years.
In the first two months of this year, the sales area and sales of commercial housing in the mainland fell by 9.6% and 19.3% year-on-year respectively, continuing the negative growth trend since July 2021.
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Although the Central Economic Work Conference at the end of last year still stated that it would adhere to "housing, not speculating," it also proposed to strengthen guidance, explore new development models, better meet the reasonable housing needs of home buyers, and implement city-specific policies to promote real estate. A virtuous circle and healthy development of the industry.
Entering 2022, the policy end has released signals of improvement one after another, and the team to loosen the regulation of the property market continues to grow.
According to the statistics of "Zhuge Looking for Housing", as of March 21, nearly 60 cities across the country have relaxed their property market control policies.
Most of the policies start from the demand side, and the content covers the relaxation of purchase restrictions and loan restrictions, the reduction of down payment ratios, the reduction of mortgage interest rates, the relaxation of provident fund loans, and housing subsidies.
On March 23, Harbin fired the first shot of the provincial capital city to lift the sales restrictions, further relaxing the local property market regulation, which raised concerns about whether other cities will follow in the future.
For real estate companies, the State Council Finance Committee held a special meeting last week, which also stated that it is necessary to promptly study and propose effective and effective risk prevention and mitigation solutions, and propose supporting measures for the transition to a new development model.
People in the mainland industry believe that the current real estate situation in China is still severe, and the lack of confidence in micro-subjects such as residents and real estate enterprises has seriously hindered the effective recovery of the economy.
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The policy to reverse the market's pessimistic expectations needs to release a clear signal
People in the mainland industry believe that the current real estate situation in China is still severe, and the lack of confidence in micro-subjects such as residents and real estate enterprises has seriously hindered the effective recovery of the economy.
The government needs to take multiple measures to stabilize land prices, house prices, and expectations, and promote a virtuous circle and healthy development of the real estate industry.
For details, please read "Hong Kong 01" Electronic Weekly Issue No. 309 (March 21, 2022) "To
reverse the "weak expectations", more is needed after the meeting of the Financial Committee of the State Council
".
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