China New Observation |The Central Political Bureau meeting first proposed "guaranteeing and subsidizing buildings". How to do the real estate market in the second half of the year?
China News Service, July 29 (China News Service Financial reporter Zuo Yukun) The "second half" of the real estate market in 2022 has an important tone!
The Political Bureau of the CPC Central Committee held a meeting on July 28 to analyze and study the current economic situation and deploy economic work in the second half of the year. The meeting pointed out that we must stabilize the real estate market and adhere to the positioning that houses are for living, not for speculation. We must implement policies based on the city to make full use of the policy toolbox to support rigid and improved housing needs, and strengthen local government responsibilities, ensure the delivery of buildings and stabilize people's livelihood.
"Protecting the House" first entered the meeting of the Political Bureau of the Central Committee
In the past month, the "loan suspension" storm of unfinished properties in many places has aroused the attention of all parties to real estate risks. This meeting was very targeted and clear: strengthen the responsibilities of local governments, ensure the delivery of buildings and stabilize people's livelihood.
"The focus of work on stabilizing real estate has begun to change, from the previous risk prevention and market stabilization to the focus on stabilizing the market, risk prevention and people's livelihood." Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, pointed out that the "security and submission of buildings" appeared at the meeting of the Political Bureau of the Central Committee for the first time, and the triggering factor was that real estate risks had hidden dangers in the field of people's livelihood security that spread from real estate companies to downstream.
"The key to promoting the protection of buildings and stabilizing people's livelihood is to strengthen the main responsibility of local governments. As for how responsibilities should be consolidated, the way is to make full use of the policy toolbox." Li Yujia believes that under the framework of ", one city, one policy ", the effect of local governments in strengthening responsibilities and making full use of the policy toolbox still needs to be improved.
Data picture: A newly built real estate property. Photo by Zhang Bin, China News Service reporter
"From the expression of the meeting, the word "compact" reflects the increase in attention to this risk, and there will be full attention to local actual implementation actions to resolve risks." Zhang Bo, director of the branch of 58 Anju Real Estate Research Institute, also believes.
"The current policy of guaranteeing and subsidizing buildings is relatively clear, local governments, commercial banks and other institutions cooperate closely, and real estate companies actively participate in the resumption of work. It is not ruled out that there will be a new round of guaranteeing and subsidizing policies in the second half of the year." Yan Yuejin, research director of the think tank center of the E-House Research Institute, believes that there will be positive progress and performance in promoting the construction of real estate companies, resolving the debt pressure of real estate companies, and safeguarding the legitimate rights and interests of home buyers.
In the previous week, China Banking and Insurance Regulatory Commission made 53 statements, and more than 10 cities have issued policy measures related to the guarantee of housing payment. On the 25th, the China Banking and Insurance Regulatory Commission held a 2022 mid-year work symposium and a discipline inspection and supervision work (TV phone number) symposium, pointing out that it is necessary to support local governments to do a good job in "insurance and delivery of buildings" and promote the stable and healthy development of the real estate market.
Chen Wenjing, Market Research Director of Index Business Department of China Index Academy, said that after the central meeting sets the tone, subsequent measures and supporting funds in various places may be implemented at a faster pace. Only when the "guaranteeing the payment of buildings" is promoted as scheduled, the economy recovers steadily, the confidence and expectations of the property market will improve, and the market will recover better and more stably in the second half of the year.
Data picture: Real estate project. Photo by Zhang Bin, China News Service reporter
"Stable the real estate market" in the forefront, "housing for living, not speculation" remains unchanged
"housing for living, not speculation" positioning has been proposed in 2016, this meeting continued to clarify that the positioning of "housing for living, not speculation" remains unchanged.
"Since the beginning of this year, more than 100 cities across the country have introduced housing support policies to support reasonable housing demand. It is expected that local support policies will be further increased in the second half of the year, but the bottom line is 'housing for living, not for speculation'." Liu Lijie, market analyst at Beike Research Institute, believes.
It is worth noting that "the expression of 'stabilizing the real estate market' ranks ahead of 'housing for living, not for speculation'." Yan Yuejin believes that this fully demonstrates that the current contradiction in the real estate market lies in the emergence of unstable factors. Therefore, the expression of stabilizing the real estate market has very strong guiding significance.
"All localities should take stabilizing the real estate market as their core goal and work direction in the second half of the year, that is, they should eliminate the factors that affect real estate stability and promote the healthy development of the real estate market." Yan Yuejin said.
Liu Lijie also mentioned that since the second quarter, the market has shown good signs of bottom repair as a whole, but recently some futures home owners suspend loans and debt defaults of real estate companies have become factors of market instability, which has led to the wait-and-seeness of the new housing market and interfered with the pace of market restoration. "The stable development and virtuous cycle of real estate are related to economic development and social stability, so stabilizing the real estate market is the top priority."
Data map: There are many buildings in the urban area. Photo by Wang Dongming, China News Service reporter
continues to support rigid demand and improved housing demand
The meeting pointed out that it supports rigid and improved housing demand. It is generally believed in the industry that it is expected that the support for improvement will be increased in the future, which is also related to the issue of implementing policies based on the city and making full use of the policy toolbox.
Chen Wenjing pointed out that the current real estate market still faces many unstable factors, and the short-term optimization and adjustment of real estate policies is still expected to increase. There is room for policies on both supply and demand, focusing on the release of demand brought about by the improvement of policy in second-tier cities.
"The policy toolbox will not only include demand-side support policies. In addition to lowering the threshold for purchasing, loan restrictions, and sales restrictions, etc., and reducing the cost of buying a house, there is room for increasing the efforts to promote housing consumption, such as deed tax subsidies, housing subsidies, and issuance of consumption coupons." Liu Lijie believes that in the future, it may focus more on supply-side policy support, such as the optimization of pre-sale fund supervision, and the policy of real estate companies to alleviate difficulties.
"In the past, it emphasized the initiative of policy relaxation in various places. In the first half of the year, various places have made many innovations in demand, including the first and second houses, new and second-hand houses, as well as very good policies implemented at the levels of talents, migrant workers, new citizens, three-child families, college students, etc.." Yan Yuejin believes that the second half of the year will be a process of consolidation, digestion, refinement and implementation of policy tools.
"Real estate policies were intensive in the first half of the year but the effects were weaker than expected, so in the second half of the year, we must 'make full use' in policy implementation, so that the policies can maximize their effects and promote the healthy development of the real estate market." Yan Yuejin said. (End)
Source: China News Network
