The number of cities whose property market regulation policies are 'loosened' continues to increase, including Kunming, Lanzhou, Fuzhou, Zhengzhou and other provincial capitals, involving the cancellation of purchase restrictions and sales restrictions, the reduction of down payment ratio, and the granting of housing subsidies. From the current situation, the differentiation of policy effects between regions is obvious, and the recovery of property market in hot second-tier cities is better than expected. Some cities with serious imbalance between supply and demand still need to introduce more policies in the future.

The heat rises slowly

According to some opinions of Hunan Provincial People's Government on implementing the strategy of strengthening the province to support the high-quality development of Changsha, the restrictions on talents' settlement are relaxed, and those with college degree or above who are employed in Changsha can immediately declare to settle down and enjoy the qualification of buying houses in Changsha. Promote high-level talents to freely settle in Changsha, Zhuzhou and Xiangtan.

According to the statistics of the Central Plains Real Estate Research Institute, since April, more than 30 cities have 'loosened' the property market regulation policies. Since 2022, more than 80 cities have issued policies related to the property market. From the content of the control policy, it mainly includes giving subsidies to purchase houses, relaxing the restrictions on settlement, and 'loosening' the policy of restricting purchases and sales.

Zhang Dawei, chief analyst of Zhongyuan Real Estate, believes that the current market activity is insufficient. Although the credit policy continues to be loose, and the difficulty of lending has been fully alleviated, the credit policy for improved housing in hot cities affected by epidemic situation is still strict, and the overall heat of the property market rises slowly.

The policy is attached with certain conditions

In some areas, the 'loosening' policy of the property market is attached with certain term conditions, and in some areas, the 'loosening' policy of the property market is introduced to deal with the epidemic.

Kunming recently issued the Opinions on Promoting the Work of Stabilizing Land Price, Housing Price and Expectation in the Real Estate Market. In order to alleviate the difficulties of real estate development enterprises during the epidemic, if the land transfer price is paid from June 1, 2021 to December 31, 2022, enterprises can apply for an extension of 60 days to pay. In case of installment payment, the payment time of each installment can be extended by 60 days at the time agreed in the original contract.

Huaibei City, Anhui Province recently issued a policy. During the Spring Housing Exhibition in 2022 (April 30-May 4, 2022), individuals or families who purchase the first set of newly-built commercial housing in their families will be given a reward of 600 yuan per square meter (up to 60,000 yuan). Financial institutions provide sufficient credit lines, give priority to meeting the mortgage loan needs of buyers during the exhibitions, provide complete information and meet the loan conditions, and generally lend money within 5 working days. At the same time, the down payment ratio during the exhibitions will be reduced to a minimum of 20%. On a voluntary basis, real estate development enterprises provide 3%-5% discount on the total house price for individuals or families who purchase new commercial housing. Huaibei Municipal Housing and Construction Bureau specially pointed out that this implementation opinion is only valid during the spring exhibitions in 2022.

Some regional 'loosening' policies are attached with certain conditions. Tianjin Housing Provident Fund Management Center recently issued the Notice on Issues Related to Housing Provident Fund Withdrawal from the First Home and Affordable Housing, which clearly states that if an employee does not use a housing loan to purchase a house, one of the buyers, his spouse and both parents can withdraw the housing provident fund in one lump sum from the fully paid house price. The withdrawal amount shall not exceed the amount of housing accumulation fund before (including) the month when the purchase contract or agreement is signed, and the total amount shall not exceed the purchase price.

Hot cities are limited in 'loosening'

The 'loosening' of the regulation of hot-spot property market in cities is relatively limited. Among the first-tier cities, only some banks in Guangzhou reduced the minimum mortgage interest rate to the same level as LPR, and the rest of the cities did not see any obvious action.

From the perspective of hot second-tier cities, Suzhou and Nanjing have limited 'loosening' efforts. Take Suzhou as an example, where the restricted sale period of second-hand houses has been adjusted from the past five years to three years.

Yan Yuejin, research director of think tank center of Yiju Research Institute, believes that the relaxation of real estate control policies in provincial capital cities has a certain bellwether significance, which has a great impact on the expected change of real estate market in his province.

The differentiation between policy areas is obvious. Zhang Bo, Dean of 5Anjuke Real Estate Research Institute Branch, said that the effects of regulation and control policies in some cities have already appeared, and the property market in hot second-tier cities has recovered better than expected. Some cities with serious imbalance between supply and demand still need to introduce all-round policies in the future, especially adjusting the rhythm of land supply, effectively stimulating the demand side and promoting the stable development of the property market.