Housing is not speculation, long – term standard rental

Housing is not speculation, long - term standard rental
Compared with previous years, many local government work reports continued to promote stable and healthy development of the real estate market without speculation on housing, which experts said indicated that there will be no major changes in local property control policies this year. We will standardize the development of long-term rental housing and increase the amount of land for rental housing, which is a major part of the work report of local governments. Hainan and other localities have also explicitly proposed to introduce measures on the same right to rent and purchase housing. The renovation of old residential areas will continue during the 14th Five-Year Plan period, with many provinces and cities announcing specific targets for 2021.

File photo: Property market. Photograph by Wan Keyi of Xinxin Longwei
Many places to reiterate the housing do not fry

In recent years, no matter the central or local government, “no speculation on housing and housing” has repeatedly appeared in a variety of important meetings and documents, “no speculation on housing and housing” has gradually become a familiar real estate market regulation policy. The Central Economic Work Conference held in December 2020 pointed out that we should adhere to the position that houses are for living in, not for speculation, take a combination of measures in light of local conditions, and promote the steady and sound development of the real estate market.

Since mid-January, the two sessions of many provinces, municipalities and autonomous regions have been held one after another. “No speculation on housing, housing and housing” and “promoting the steady and healthy development of the real estate market” have become frequent phrases in the government work report. According to the incomplete statistics of Sino-Singapore Jingwei client, the above statements have appeared in the government work reports of Shanghai, Liaoning, Jilin, Inner Mongolia, Ningxia, Gansu, Henan, Zhejiang, Fujian, Guangdong, Hunan, Chongqing, Guizhou, Yunnan, Hainan and other provinces.

Shanghai government work report pointed out that adhere to the housing is for living in, not for speculation, to improve the long-term mechanism for the steady and sound development of the real estate market. Gansu government work report pointed out that the implementation of “housing speculation” positioning, city-specific policies to promote the steady and healthy development of the real estate market. Chongqing Municipality pointed out that housing is for living in, not speculation, and strives to stabilize land prices, housing prices and expectations to maintain the steady and healthy development of the real estate market.

Xie Yifeng, president of the China Urban Real Estate Research Institute, told the China-Singapore Jingwei app that there will be no major changes in local property regulation policies this year, no significant easing or large-scale tightening. For now, some hot cities are strengthening regulation and control through “patching” methods, and it can be predicted that if the market overheats this spring, the policy may be increased.

At the above-mentioned Central Economic Work Conference, the central government also proposed to “solve the prominent housing problems in big cities”, which has become the central government’s latest formulation for the real estate market. The government work reports of Beijing, Liaoning, Henan, Jiangsu and other provinces have made this clear. Beijing municipal government work report pointed out that efforts to solve the prominent housing problems. The Liaoning provincial government’s work report points out that efforts will be made to solve major housing problems in big cities, improve policies for long-term rental housing and ensuring land use, and promote steady and healthy development of the real estate market. According to the Henan provincial government work report, we will explore ways to solve the major housing problems in big cities by sticking to the principle of “no speculation on housing prices”.

Xu Xiaole, chief analyst of Shell Research Institute, said to Sino JingWei client that in 2020, under the background of relatively loose monetary policy, some funds will be spilled into the real estate market, and the contradiction between supply and demand of housing in some cities such as Shenzhen will be further intensified, and housing prices will rise. The rapid rise of housing price will block the inflow of population to some extent, which is not conducive to urban development. Therefore, the importance of solving the housing problem in big cities is self-evident.

Xu Xiaole thinks, the solution big city housing problem should pay attention to “take measures according to local conditions, many measures simultaneously”. A summary of the real estate regulation policies introduced by various regions since the second half of 2020 shows that the policy tools are no longer just to restrict the demand side, but also to increase the supply of residential land, the construction of talent housing and rental housing and other supply-side policies, as well as the long-term strategy of promoting regional coordinated development to tame the fluctuation of the real estate market.

Standardizing the development of long-term rental housing concerns

Housing is not speculation, long - term standard rental
File photo: Land to be developed. China-Singapore longitude and latitude photo by Xue Yufei
According to a new client weft incomplete statistics, in 2021, Beijing, Shanghai, liaoning, jilin, Inner Mongolia, ningxia, shanxi, shaanxi, gansu, xinjiang, Tibet, henan, jiangsu, zhejiang, fujian, guangdong, guizhou, chongqing, yunnan, guangxi, hainan and so on more than 20 provinces, municipalities and autonomous regions of the government work report, are put forward to develop rental housing market. At the same time, many local governments proposed to standardize the development of long-term rental housing and increase the land supply of rental housing, which is rare in previous government work reports.

Guangdong proposed to strengthen the construction of affordable rental housing, standardize the development of the long-term rental market, increase the supply of land, a separate housing rental land plan, explore the use of collective construction land and enterprises and public institutions owned idle land to build rental housing.

Hainan proposed to introduce measures on the same rights of rent and purchase to rectify and standardize the order of the housing rental market and promptly deal with the potential default risks of long-term rental housing.

Xie Yifeng said that in the past two years, the problem of renting apartments in big cities has been attracting continuous attention, and some long-term rental apartment enterprises frequently run away and thunder, so there is a strong call to improve the rental market environment. Although supporting the development of rental housing has been involved in government reports in recent years, the overall development is faced with the constraints of capital and land supply.

The two sessions in Beijing have just ended, the new rules on renting apartments fell to the ground. On February 2, the Beijing Municipal Commission of Housing and Development and other departments issued a notice on regulating the business activities of housing rental enterprises in the city, which said that deposits collected by housing rental enterprises from tenants should be held in custody through a special account set up by the Beijing Real Estate Agents Association, and the amount of deposits collected should not exceed one month’s rent.

Yan Yuejin, research director of the think tank center of the E-house Research Institute, pointed out that Beijing’s new rules on renting apartments have signalling significance and industrial demonstration effect, which will help reduce various rental disputes and promote the smooth operation and healthy development of the long-term rental apartment industry, which is worth learning from other cities.

In addition, in addition to the Hainan Provincial Government Work Report, the Ningxia Autonomous Region Government Work Report proposed to “promote both rent and purchase”, while Chongqing proposed to “build a housing system that encourages both rent and purchase”. Xu Xiaole said that China’s hukou policy is linked to housing, and the actual implementation process is based on the principle of “housing ownership”, which means that the social welfare obtained through renting is lower than that of buying a house. “The different rights of renting and buying” have become the primary obstacle to the development of the rental housing market. The same right of rent and purchase is conducive to the perfection of the rental market system, which makes leasing become a long-term residence choice.

Continued progress was made in renovating old residential areas

File photo: A residential area, Haidian District, Beijing. China-Singapore longitude and latitude photo by Xue Yufei
With the reduction of reconstruction efforts in shanty towns, urban renewal and renovation of old residential areas have become major livelihood projects promoted by all regions. According to a survey conducted by the Ministry of Housing and Urban-Rural Development, there were about 220,000 old residential areas completed by the end of 2000, involving nearly 39 million households. In 2020, a total of 40,279 old urban residential areas will be renovated, benefiting 7.3573 million households.

The Ministry of Housing and Urban-Rural Development has previously said that during the 14th Five-Year Plan period, China could renovate another 35 million households and strive to basically complete the old urban communities that were built before the end of 2000. The year 2021 is the first year of the 14th Five-Year Plan. According to the statistics of Sino-Singapore Jingwei, except for a few provinces and municipalities, the government work reports of almost all provinces, municipalities and autonomous regions have proposed to promote the project, and many localities have set specific targets.

Shanghai has proposed to deepen urban renewal, give full play to the role of the platform of urban renewal center, complete the renovation of 700,000 square meters of Grade II old houses in the downtown area, carry out the renovation and renovation of 10 million square meters of old houses, and accelerate the reconstruction of urban villages. Shaanxi has proposed to rebuild 7,500 new rundown areas and 3,622 old urban communities. Henan has proposed to renovate no less than 500,000 old urban residential areas. Sichuan province has proposed to carry out urban renewal, speed up the construction of livable, sponge, resilient and smart cities, and renovate 6,000 old urban communities.

Xie Yifeng believes that the reconstruction of old residential areas is another important measure to stimulate investment to replace the reconstruction of shanty towns. Some institutions predict that the total investment in the reconstruction of old residential areas may exceed 700 billion yuan in 2020. However, it should be noted that the transformation of the old community is also faced with the problem of capital investment. From the perspective of housing value preservation and appreciation, if the geographical location and various living facilities of the community are good, the housing value appreciation space will be larger after the transformation.