The state's policy to reduce the tax on housing transactions and the city's “14 articles” are having various effects on the market: some home buyers who are ready to trade by the end of the month are proposing to postpone the transaction, and the industry is waiting for new standards for ordinary housing. It is more “heavy” in terms of real estate agents: yesterday, a number of housing brokers, including chinese properties, joint-ventures, and faith-based properties, revealed that all second-hand house transactions had been suspended. After the launch of the new deal for housing, the parties to the used house in shanghai were anxiously waiting. Yesterday, the parties concerned in the joint venture revealed that, following the promulgation of the new deal, the company had been at the top of its ranking to review all second-hand house transactions and to suspend all sales as a matter of urgency, while some of the transactions that were about to enter the tax-paying chain received special attention. “staff members have separately briefed all clients on the relevant elements of the new policy and, after obtaining a client understanding, have deferred the processing of the contract beyond 1 november. Some of the business people and buyers had agreed to pay and process this morning, and all of the customers had suspended the procedure after being notified by the company. The blogger says: in addition to the joint venture, large housing brokerage companies such as china's original properties, the sino-islamic properties, the real estate of the twenty-first century and the united states complex all indicated yesterday that second-hand house operations had been suspended. One of the officials in charge of the chinese original property indicated to the journalists that, since the new deal on the property covered a number of transactional taxes, some clients had expressed to the operators the intention of changing the sales contract. “a seller has just signed a letter of intent to deal with the client, trading a second-hand house at a price of $1. 2 million, and the agreed tax is borne by the buyer. Following the promulgation of the new policy, taxes and fees fell significantly and the cost of home buyers fell by about $100,000. In such a case, the seller proposes to re-establish the content of the contract.” real estate trading centres: the influence of the new deal is of course not just that of an intermediary, but that of a journalist who visited the real estate trading centres in the districts of puto, jian an and pudong yesterday. Journalists found that there had been a slight decrease in the number of real traders in trading centres and a marked increase in the number of people coming to consult. Yesterday afternoon, mr. Zhou and his colleagues entered the pudong real estate centre and headed straight for the financial window. “when does the standard of general housing change? What does an improved general self-housing mean?” mr. Zhou is desperate to shed light on the problem. In response, mr. Zhou was informed by the staff of the financial window that no response had been received. In fact, the tax authorities are also discussing the implementation of the policy after the new deal for housing. Persons involved in the joint venture have revealed that, as many property transactions may involve tax changes, the tax authorities have also suspended the receipt of part of the property tax business. The claims of persons concerned in the joint venture were corroborated by the tax authorities. According to a related source from the tax authorities, the tax counter of the shanghai part of the real estate trading centre will be systematically upgraded to accommodate the adjustment of tax policy. In industry: the exit tax may not work, although there are already buyers who wish to check out to reduce transaction costs, there is little possibility of refunding the transaction fee. According to a person in charge of china's real estate, yesterday the company had been questioned by a number of clients, whose second-hand house transactions were nearing completion and most of the taxes and fees had been paid. “under the new policy, the transaction costs of both buyers and sellers are reduced to a certain extent, and both buyers and sellers wish to cancel their contracts and reopen second-hand house transactions in order to reduce costs.” according to industry sources, in accordance with past practice, contracts can be rescinded and tax fees refunded in the event of a dispute prior to the transfer of a second-hand home in the course of the transaction, “but in the course of policy adjustments, a large number of home buyers apply to reduce expenditures and the tax authorities are less likely to approve tax refunds”. When the rules on mortgages were issued, 27 days before the new rules on mortgages were issued, the banks were waiting for policies such as lower taxes on housing transactions to be put in place, and the focus of the next issue would no doubt shift to how they would be implemented. Yesterday, journalists contacted a number of banks to learn that most bank rules on mortgages were still under negotiation and that branches were waiting for the rules to be issued by the head office. In accordance with the relevant provisions, the by-laws of the commercial banks will be issued by the 27th of this month. Prior to the issuance of the rules, approval of new mortgages had been suspended by some of the banks, and the adjustment of interest rates on the mortgage stock was still pending. At the time of the interview with the press, banks such as the shanghai branch of the trade union had indicated that the approval of new mortgages had been suspended and were awaiting the issuance of the rules of the head office. Industry analyses suggest that commercial banks may eventually adopt uniform rules on mortgages, which may include conditions for the downside of stock mortgages, definition of “improvement” of the qualifications of buyers, etc. “the new rules are still too thick, and some of the provisions remain to be answered.” yesterday, as was said by the manager of the housing and loan department of a single-share bank. According to the source, the questions that remain to be addressed about the new regulations include, for example, what constitutes an “improvement” housing, defined by the standard of a condom, size or house price; how the bank supports “improvement” housing; and whether non-employed persons are also entitled to a 70% discount on interest rates and a 20% down payment if the decision is to improve housing. In accordance with the relevant circular published yesterday on the official website of the shanghai city provident fund management centre, the percentage of households that have applied for loans under the housing provident fund has been adjusted from 30 per cent to 20 per cent of the total price of the house purchased. The policy was implemented from 1 november 2008 to 31 december 2009. The proportion of payments for the purchase of first-hand general-commodity housing units applying for loans under the housing provident fund remains at 20 per cent of the total purchase price. In addition, the circular mentioned that, as of 27 october 2008, the interest rate on prf loans had been reduced from the current 4. 32 per cent to 4. 05 per cent for five years (including five years) and from the current 4. 86 per cent to 4. 59 per cent for more than five years (by 0. 27 percentage points). The deputy fellows of the shanghai city provident fund management centre explained in good faith that it had been the policy of the past to place lower-payment limits on used houses than new ones, while the policy issued yesterday by the shanghai city provident fund management centre, which clearly reduced the first-hand payment to 20 per cent, was clear. The purpose of this provision is to fully ease credit conditions for all types of housing transactions and to encourage all home-owned consumption. Would the developer lower the “offer” price, which the developer claims is the bottom line and does not reduce the price promotion? In response, a director-in-chief of a large housing developer's operating centre explained that since june, the market had gradually cooled down, and that most of the existing projects of developers had slowed down sales. “in view of the possible impact of the new deal on the market, the developers expected to speed up the pace of release in the next phase, that is to say, the supply of commercial housing would increase. But since most of the new discs are now sold at a "psychological bottom line" for developers, it is estimated that there will be no major price reductions on the market.” yang zhijiang, deputy director general of the marketing centre of the dahua group (yang zijiang blog, yang zijiang). According to the press, yang zijiang also said that the market would then see a peak of small household supplies of less than 90 square metres。
