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Original title: Stabilizing housing prices in big cities, the “14th five-year plan” unveils these signs
Under the general tone of “housing, housing, no speculation”, the real estate market has become more refined during the period of the “14th Five-Year Plan”. On the one hand, it supports a reasonable demand for self-employment and curbs speculative investment demand, on the other hand, it will focus on “cities with large population inflows and high housing prices.”
Recently, the “Outline of the fourteenth five-year plan for the national economic and social development of the People’s Republic of China and the long-term goals for 2035” (hereinafter referred to as the “fourteenth five-year plan”) was published. For the real estate industry, the “14th Five Year Plan” states that the housing market system and the housing security system must be improved. Adhere to the positioning of houses for living, not for speculation, and speed up the establishment of a housing system with a multi-user offer, multi-channel guarantee and simultaneous rent and purchase, so that all people have a living space and a balance. of work and housing.
Since the Central Conference on Economic Work in 2016 first presented “housing and housing, not speculation”, this expression has been applied to the “13th Five-Year Plan”. During the period of the “XIV Five-Year Plan”, “housing to live without speculation” appeared for the first time in the planning scheme. Many people in the industry told China Business News that this shows that the real estate industry is facing structural adjustments and that its role in stimulating the economy is declining and returning to livelihoods.
Strengthen real estate financial regulation
In order to curb real estate speculation of “buying with leverage and keeping but not living”, the “XIV Five-Year Plan” proposes to establish a linkage mechanism between housing and land, strengthen real estate financial regulation and give full play to the role of housing tax regulation.
Regarding the strengthening of real estate financial regulation, Sheng Songcheng, professor of economics and finance at China Europe International Business School and adviser to the Shanghai Municipal People’s Government, recently mentioned in an interview with the media that this means “squeezing bubbles” on the property. market and curb irrational investment demand.
“At present, China’s housing consumption has clearly squeezed other consumptions. From this perspective, there is no doubt that there is a bubble in the Chinese housing market. In addition, high housing prices in China have also increased. significantly the salaries of residents, which has led to the physical industry. The decline in profit margins is also a manifestation of the bubble in the housing market, “he said.
“The central problem in the real estate field is still relatively large bubbles, and the trend from financialization to the bubble is relatively strong. It is the largest gray rhino in the financial system.”Bank of ChinaGuo Shuqing, chairman of the Insurance Regulatory Commission, told a press conference of the State Information Office on March 2 that many people buy houses not to live, but to invest and speculate, which is very dangerous.
Recently, Shenzhen, Hangzhou, Shanghai and other popular cities have successively introduced new policies in the real estate market to strictly monitor credit funds, such as operating loans and consumer loans, to prevent them from entering the real estate market. Among them, Shenzhen has further clarified the benchmark standards for the appraisal price of home-related loans. A few days ago, the Shenzhen branch of the four major state banks made it clear that the reference price of the second-hand housing transaction issued by the government will be used as an important reference base for mortgage loans.
Shenzhen City (photo of a drone) taken on August 26, 2020, Xinhua News Agency
These end-of-control financial policies have shown initial results. According to data from the National Statistics Office, in February this year, the average increase in prices for new and second-hand homes in first-floor cities fell from the previous month. Among them, the month-on-month rise in second-hand housing prices in Shenzhen fell first, from 1.7% in the previous month to 0.9%, a drop of 0.8 percentage points, which was lower to the average increase in 70% of the country. cities in February.
Li Yujia, chief researcher at the Housing Policy Research Center of Guangdong Province, told CBN that the housing market regulation policies of hot cities on the financial side are of reference importance. This year’s hotspot cities are expected to maintain a high frequency of regulation, and during the period of the “XIV Five-Year Plan”, the regulation of the real estate market will also change to a long-term mechanism. Specifically in the financial aspect, on the one hand, we must implement the “three red lines” of real estate financing and the “five categories” of bank loans to control the flow of excessive funds to real estate from the source and control the cost. . of capital; On the other hand, through “containment”, “operating loans for real estate speculation” reduce the high risk of leverage of residents who buy houses and cool the real estate market through precise adjustments in the ratings of personal loans, down payment fees and loans. dues.
Regarding the role of housing tax adjustment, Li Yujia said that improving the tax adjustment effect has been the state’s focus since the second half of 2020. Implemented in the housing market system, including changes In the VAT exemption period, these policies have significant effects on short-term demand regulation and on the repression of housing investment speculation.
A China Business News reporter noted that, following the “Thirteenth Five Year” plan, it was once again included in the “Promotion of Real Estate Tax Law” plan; at the same time, the “fourteenth five-year plan” for “real estate tax” has not changed.
Zhang Bo, dean of 58 Anju Guest House Property Research Institute, believes that this not only shows that the real estate tax implementation principle of “legislation first, full authorization and step-by-step advance” has not changed, but also indicates that the general real estate tax promotion is ongoing. As an important tax for the real estate industry in the future, the real estate tax will not only help promote the fundamental solution of the “land financing” problem, but also ensure the stable and healthy functioning of the real estate market.
Vigorously develop rental housing
In addition to curbing real estate speculation, to solve the problem of high housing prices in large cities, during the period of the “XIV Five-Year Plan”, we will also accelerate the cultivation and development of the housing rental market.
In accordance with the “14th Five-Year Plan”, we will focus on cities with high population flows and high housing prices, expand the supply of affordable rental housing and focus on solving the housing problems of needy groups and new citizens. .
This year’s government work report also mentioned that the standardization of long-term rental housing market development and reducing the burden of rental housing taxes and fees. After two years of “absence”, the term “lease” was included again in the government work report.
Mo Tianquan, president of Fangtianxia Holdings, believes that the development of rental housing will help solve the outstanding housing problems in large cities. “For home buyers, especially some young people who cannot afford to buy a home, the development of the rental housing market ensures that they have a stable living environment and, to some extent, reduces the urgency of buying a home. as part of the demand slows down to enter the market. This will help alleviate the contradiction between supply and demand in large cities and curb excessive increase in house prices. “
“Solving outstanding housing problems in the big cities”, this expression was clearly exposed for the first time in the Central Conference of Economic Work last year. Subsequently, at the National Urban-Rural Housing and Construction Conference late last year, the Minister of Housing and Urban-Rural Development Wang Menghui emphasized vigorously strengthen the housing market system and housing security system, accelerate the remediation deficiencies. in rental housing, and solve the problem of new citizens, young people, especially The housing problems of people who are engaged in basic public services and other difficult housing groups.
A China Business News reporter found that the “13th Five-Year Plan” refers to “perfect” for the “home-buying and rental system”, while the “14th Five-Year Plan” changes to “speed up the establishment.”
Specifically, in terms of policy-based leasing, the “XIV Five-Year Plan” mentions that the supply of affordable housing will be effectively increased; the relationship between basic and non-basic guarantees must be properly managed; In terms of the rental market, the “14th Five-Year Plan” is clear “Improve the long-term rental policy.” At the same time, in order to increase the supply of rental housing, the “14th Five-Year Plan” also increased financial and territorial support. For example, a separate list of land use plans for rental housing.
In Mo Tianquan’s view, during the “XIV Five-Year Plan” period, long-term rentals will become the center of regulation and development of the rental market. Since long-term rental agencies have a long operating cycle and low return on investment, in order to build a stable long-term housing supply entity, long-term rental agencies must also receive adequate fiscal support policies. . “To take full advantage of the governing role of taxes in rental housing, the policy focus should be on reducing the tax burden on the main body of rental housing.”
In order to protect the legitimate rights and interests of tenants and landlords, during the period of the “XIV Five-Year Plan”, the rental market will also usher in strong supervision. In accordance with the “XIV Five-Year Plan”, we will accelerate the establishment of housing rental laws and strengthen the supervision of the rental market.
On September 7, 2020, the Ministry of Housing and Urban-Rural Development issued the “Regulation on Housing Leasing (Draft for Comments)” and publicly solicited opinions from the public. Many people in the industry told CBN that the regulation is expected to complete the legislative process this year.
In addition, the “XIV Five-Year Plan” proposes to vigorously and orderly expand the supply of urban rental housing, improve the long-term rental policy and gradually allow rental housing to have the same rights in the enjoyment of public services. .
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Editor-in-charge: Wang Xiang
