These days, policies and measures related to the real estate market have been intensively introduced, which has boosted the confidence of all parties in the stabilization and recovery of the real estate market. On the demand side, the cost of buying a house is reduced by "recognizing the house without recognizing the loan" and "personal income tax rebate for buying a house"; Supply side, promote the improvement of financing situation of real estate enterprises. At the same time, local governments are still expanding the space for adjusting and optimizing policies because of the city’s good use of the policy toolbox. "Golden September and Silver 10" is the traditional peak season of real estate market sales. With various support policies, people are full of expectations for the upcoming September market.
Recently, the Ministry of Housing and Urban-Rural Development, the People’s Bank of China and the General Administration of Financial Supervision jointly issued the Notice on Optimizing the Criteria for Determining the Number of Housing Units in Personal Housing Loans, which promoted the implementation of the policy and measures of "recognizing the house without recognizing the loan" for purchasing the first home loan. The Notice clarifies that when households (including borrowers, spouses and minor children) apply for loans to buy commercial housing, if family members do not have complete housing under the local name, banking financial institutions will implement the housing credit policy according to the first housing regardless of whether they have used loans to buy housing. This policy is included in the "one city, one policy" toolbox for cities to choose independently.
According to statistics, at present, there are still about 18 first-and second-tier cities that implement the policy of "recognizing housing and recognizing loans". That is, if you have applied for a loan, you can’t implement the down payment and loan interest rate of the first home, regardless of whether there is a real estate under your name. After the implementation of the policy of "recognizing the house without recognizing the loan", it is good news, especially for the families with improved demand of "selling one and buying one". After selling a house without a house, they can enjoy low down payment and low loan interest rate according to the purchase of the first house, and the pressure of raising down payment and repaying mortgage loans will be reduced.
"Recognition of housing and recognition of loans" is a regulatory policy to curb speculation in the overheated market. At present, the relationship between supply and demand in the real estate market has undergone major changes. However, due to the high cost of buying houses, there are still many rigid and improved needs that have not been effectively met. More effective and precise policies are needed to stimulate market vitality.
This time, "recognizing the house without recognizing the loan" is the performance of policy adjustment. This policy will help reduce the cost of housing purchase for residents and better meet the demand for rigid and improved housing. As the main responsibility of real estate regulation and control lies in local governments, it is believed that with the implementation of the policy of "recognizing houses without recognizing loans" in various localities, it will have a certain driving effect on the market.
Recently, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development issued the Announcement on Continuing the Implementation of Individual Income Tax Policies to Support Residents to Purchase Houses. From January 1, 2024 to December 31, 2025, taxpayers who sold their own houses and repurchased their houses in the market within one year after the sale of their existing houses were given preferential tax rebates.
As early as September 30, 2022, the Ministry of Finance and the State Administration of Taxation issued a document clearly stating that from October 1, 2022 to December 31, 2023, taxpayers who sold their own houses and repurchased their houses in the market within one year after the sale of their existing houses would be given preferential tax refund for the personal income tax paid for the sale of their existing houses. The three departments issued a document to continue the previous preferential policies of personal income tax rebate, which will help families who buy houses for improved needs to reduce the expenditure of house exchange funds, reduce the cost of buying houses and promote the release of housing consumption potential.
On August 27th, WeChat official account, the WeChat of China Securities Regulatory Commission, announced that it would balance the primary and secondary markets and optimize the supervision arrangements for IPO and refinancing, which made it clear that the refinancing of listed real estate companies was not restricted by the break, net loss and loss. This will help listed real estate enterprises to refinance and ease the financial pressure. At the same time, the CSRC’s new financing policy for the real estate industry will help all parties, especially commercial banks, asset management institutions and other financial institutions to improve their expectations for the real estate industry and optimize the financing environment of real estate enterprises.
Some cities have actively introduced relevant policies to help the real estate market stabilize and rebound. On August 25, Jiaxing, Zhejiang Province issued 21 measures to further promote the stable and healthy development of the real estate market, among which it was clear that it would support the reasonable demand of all households and no longer limit the number of houses purchased; All commercial housing (including the original restricted housing) is no longer restricted from transfer. Xiamen recently reduced the down payment ratio of second-home housing provident fund to 40%. Shanxi Province recently said that it will promote the stable and healthy development of the real estate market by promoting housing consumption, improving housing supply and exploring existing home sales. Recently, Hunan Province proposed that in view of the double contradiction between sluggish demand and poor supply, we should manage demand on the one hand and optimize supply on the other, and strive to promote the stable and healthy operation of the real estate market through the efforts of both supply and demand.
The favorable policies on housing are not limited to these. On August 25th, the Standing Committee of the State Council deliberated and adopted the Guiding Opinions on Planning and Building Affordable Housing, demanding that the planning and design of affordable housing should be well done, the construction should be promoted by means of reform and innovation, the quality of housing construction should be ensured, and the construction of supporting facilities and the supply of public services should be strengthened. This shows that on the basis of building the largest housing security system in the world, the construction of affordable housing is still advancing, and the importance of planning, quality and supporting facilities is more emphasized.
The adjustment and optimization of many real estate control policies will gradually form a joint force, which will help stabilize expectations and inject confidence into the market. I believe that these more targeted control measures will have a positive effect on the stabilization and recovery of the real estate market. (This article Source: Economic Daily Author: Kang Shu)
