On 19 february 2018, the national statistical office published an update on the evolution of the prices of residential sales of 70 large and medium-sized urban commodities, which showed that in february, 15 of the 70 large and medium-sized cities continued to show overall stability. Among them, the price ratio of new residential construction and second-hand residential sales in the first-line cities has both increased。
In response, industry sources indicated that despite the end-of-year situation in 2017, the two-month increase in house prices in early 2018 had fallen. The year-on-year increases will be steady as the round-up of the housing price ratio recedes, and the national building market will return to stability。
Two months in a row
Based on data from the national statistical institute, the institute of evictions conducted an arithmetical average of the prices of housing in 70 large and medium-sized cities. It was calculated that, in february, the price of new residential housing in 70 large and medium-sized cities had increased by 0. 2 per cent, slightly down from 0. 3 per cent in january, falling back in february, and that the rate of housing prices had already moved away from the rapid increase。
In response, liu jianwei, senior statistician of the urban division of the national statistics institute, stated that in february, prices for the sale of new commercial housing in 15 hotspots continued to stabilize overall, with 12 cities falling by 0. 1 to 0. 6 percentage points; 2 cities in zhengzhou and chengdu were flat; and tianjin slightly increased by 0. 1 per cent. By comparison, in nine cities, the price of new residential housing fell, ranging from 0. 3 to 2. 5 percentage points; the prices were even。
Researchers at the shanghai institute for eternal property indicated that in january and february 2018, the increase in house prices had fallen, remained “reasonable” and was about to enter the cold zone. The prices of new dwellings and second-hand dwellings in front-line cities have been revised downwards. In february, the price ring ratio of new and second-hand residential housing in front-line cities continued to decline, increasing by 0. 2 and 0. 1 percentage points, respectively, over the previous month. In comparison, the prices of new residential housing in the first-line cities decreased by 0. 1 per cent in comparison with the same year; the increase in second-hand residential prices fell for 17 months and continued to fall by 0. 6 percentage points this month。
It is worth mentioning that the price of second-hand houses shows a decline of 4. 6 per cent in beijing, 1. 7 per cent in nanjing and 0. 9 per cent and 0. 4 per cent, respectively. “this means that the prices of used houses in four cities in beijing, nanjing, zhengzhou and xiamen fell a year ago.”
The future insists on maintaining control
On 19 january, the minister of housing and urban and rural construction, wang moonti, stated that over the past year, with the strong support of local governments, the classification regulation had been maintained and that the real estate market had generally functioned smoothly because of the city's local practices. Real estate prices or the rapid rise in housing prices have been effectively curbed and expectations in the real estate market have changed positively。
According to wang mok-iu, the insistence on regulating the goals is unwavering, is not relaxed, and maintains policy continuity and stability, in particular by further entrenching the primary responsibility of local governments。
“according to the establishment of a multi-maintenance, multi-channel security, and lease-purchase housing system.” according to wang monk, the renovation of squatter settlements will be accelerated by 2018 and the construction of public rental housing will be vigorously advanced, especially in the construction of public rental housing, which will include the foreign population, migrant workers, urban homeless persons, including young teachers, doctors, sanitation workers, etc., in the system of public rental housing security。
With regard to future housing solutions, wang moon kwok has recently stated that shared-ownership housing is one of the avenues for future homeless households to have their homes. “it is first provided by the government and is also provided to homeless households. Third, it's lower than market prices.”
“we now support the piloting of beijing and shanghai, but some cities have already started to do it, including many cities now called `brainhouses' — a significant proportion of which are communally owned housing.” wang moon kwok said。
On the other hand, the construction of rental housing, the development of housing rental markets, the establishment of state-owned leasing companies and the establishment of service platforms have been vigorously promoted. Wang moon kwok revealed that 51 state-owned leasing companies have been established in 12 pilot cities at this stage, and that all pilot cities have established government-led platforms for the exchange and management of rental housing services. In the case of guangdong, for example, you have a house to build, you can sign an agreement to rent it for three years and five years, and you can rent it again, because state-owned rental enterprises can guarantee fair functioning of the market, or it is an important social responsibility of state-owned enterprises。
Discrepancies are becoming clearer
Liu jianwei stated that much of the effectiveness of regulation was due to the continued implementation of classification regulations and the maintenance of policy stability and continuity at local and city-driven locations。
In recent days, the housing security and housing authority of wuhan, hubei province, has issued a request for advice on the operational procedures for the first purchase of new commodity housing in wuhan city. According to the bulletin, new commodity housing projects with a pre-sale price of less than $18,000 per square metre and an area of less than 120 square metres are given priority to families who have no home ownership in wuhan city, meet the requirements of the housing limitation policy and have no record of housing transactions for the first three years from the date of purchase。
The bulletin requires developers to include in the priority list not less than 40 per cent (including 40 per cent) of the eligible quasi-sale sources of housing in new commodity housing projects by means of a notarized roller. The document is valid for two years。
In february, wuhan was known to have launched the first priority home selection exercise for new home-purchase families. According to the relevant head of the wuhan city housing authority, the problems of inadequate housing in parts of the wuhan region, the difficulty of buying housing for groups in need, and the difficulty of “one house”. The pilot, an important initiative to implement the requirements of the national conference on urban and rural housing construction, “meeting first demand, supporting demand improvement and containing speculation of houses”, will further promote a new pattern of differentiated regulation of various types of demand in the wuhan real estate market。
At the state level, the “occupational rules for regulation and promotion of health in the real estate industry”, to be implemented on 27th day, states that local regulation of land prices is to be implemented. In the case of plots in hotspots in the centre of the city, land prices need to be regulated by setting prices for the sale of housing, supporting secure housing, home-owned rental housing, etc., and programmes are proposed by the housing sector in conjunction with the territorial resource department, the planning department, and are included in the land release programme, which is approved by the municipality。
The rule also states that the planning source for overcapacity in real estate development projects is being strengthened to eliminate over-standard planning design gifts (non-equity)。
In this context, and in the context of the future direction of the real estate market, it is believed that regulatory policy will remain consistent and stable in the broader context of “homeless” housing, with the imposition of credit tightening factors, and it is expected that the increase in housing prices will continue to fall in march and enter the “cold” zone。
Reporter liang zing xu hae-bo
