Zhengzhou Intervenes in Housing Market With Loan Guarantees

Low income home buyers cannot afford the down payment, so they contract with a credit guarantee company for help. (Someone tell Ren Zhiqiang.)In Zhengzhou, some of these firms use illegal financing and in the words of the article, this led to instability and a lack of credibility in the market. This was the impetus for the new policy, though the timing of its release may be related to the real estate slowdown.

郑州出手“救市”：购房贷款可获政策性担保

Yesterday, the "Zhengzhou City, individual housing policy management approach guarantees housing loans (draft)" (hereinafter referred to as "the draft") posted a time there have been many guesses: Zhengzhou city government bailout?

In this regard, the relevant functional departments responded: around different temporary "bailout" policy, Zhengzhou City, local regulations issued in the form of policy, not only to enable the public to get concessions, more important is the implementation of the policy will be a long-term, longer-term vision, I believe the effect will be better.

Henan Chinese Commercial News reporters Song Xiaoshan and Zi Lili

Release

Individual housing home loans

Availability policy guarantee

"Draft", personal housing home loans, housing home policy guarantee institutions established by law as the guarantor of individual housing buyers in accordance with relevant policies to apply for individual housing loan borrowers guarantee, the borrower fails to fulfill the agreed contract When the housing loan repayment obligations, repayment of housing loan debt by the security agencies on behalf of the borrower.

However, the borrower should be based on the loan amount, loan term to pay a service fee to guarantee housing home policy guarantee institutions.

In addition, the concern is that in the administrative area of Zhengzhou City, the borrower to apply for individual housing loans from commercial banks, individual housing provident fund (portfolio) loans, lenders require security guarantee, the guarantee provided by the housing home policy guarantee institutions, apply this approach.

That policy is not only to provide security for the loan fund, but also to provide security for commercial loans.

Doubt

Zhengzhou To "rescue"?

"May Day" holiday, Beijing, Shanghai, Guangzhou and Shenzhen, the four cities traded cold, many have started to "rescue."

Zhengzhou municipal government at this time to publish such a policy, people's first reaction is to save the city of Zhengzhou also shot yet?

In the first quarter of this year, the real estate market situation released, Zhengzhou Municipal Bureau of Statistics has proposed relevant person in charge, Zhengzhou City real estate market, or will usher in a new period of adjustment. Under the premise of maintaining price stability, accelerate housing pre-approved approval procedures and the pace of the market, so that the city's real estate sales to maintain a certain scale, and increase coordination of efforts in the financial sector. "Recommends that the Government and relevant departments have targeted to increase coordination efforts to encourage banks to actively seek the loan amount, and effectively implement differentiated housing credit policy, the first set of housing loans remained at the benchmark interest rate to support the rigid demand, support Zhengzhou City real estate development. "

Then the real estate market in Zhengzhou, is not to the government had to bailout the time?

Analysis

Zhengzhou property to the point where the bailout yet?

Statistics: real estate market will usher in a period of adjustment

Look at a set of data from the Bureau of Zhengzhou City. One quarter of this year, Zhengzhou City, real estate sales growth decline. January to March, the city's real estate sales fell 3.2 percent from a year earlier. Among them, the commercial housing sales fell by 15.3% over last year. And since the first quarter of 2014, only two new projects, resulting in the city's new housing construction area growth rate dropped significantly. In addition, the real estate business capital chain tight, the city's real estate development enterprises actual funds 33.68 billion yuan, down 2.3% over the previous year.

In this regard, the Zhengzhou Municipal Bureau of judgment is the real estate credit policy tightening, the city's real estate market there has been a strong market sentiment, new home sales fall in question or the real estate market will usher in a new period of adjustment.

Housing Authority of the published data is relatively optimistic

The data published in Zhengzhou City Housing Authority is relatively optimistic, the first quarter of this year a total of Zhengzhou urban commercial housing sold 18,918 units, commercial housing sales price of 7,447 yuan per square meter.

Selling well, the price is for the first time since the second half of last year's rally, Zhengzhou monthly rates five-day losing streak. After three consecutive months of rising prices per square meter than last December rose 395 yuan.

However, the performance has been strong in the secondary housing market, this is not quite up. Statistics show that in the first quarter of this year, Zhengzhou City, second-hand housing transaction area of 979,800 square meters, down 29.23%. Some provincial cities of second-hand housing turnover, fell even more than 50%.

Expert: far from the city formed a systematic price

"Just from the data, Yishoufang market by the developers pushed the tempo and number of other factors, the short term does not reflect the market conditions, but the secondary housing market in general is relatively stable, but a quarter of second-hand housing market is not optimistic, of course, are affected by the credit policy. "Henan University of Economics and Political Science Professor, Institute of Economic Research, said Li Xiaofeng, director of real estate. He judged, although the behavior of individual developers have cut prices on the Zhengzhou market, but far from the city formed a systematic price cuts, not to mention the property market collapsed.

Reply

Not a bailout, but more long-term than bailout

For the "draft" Promulgation of Zhengzhou City Legislative Affairs Office staff regulations say that this is the first time in Zhengzhou on individual housing policy guarantees housing loans issued draft. The intention is to develop this approach, so that more low-income families own their own homes.

The reality is that low-income families one-time payment to buy a house is not reality, but only pay a certain percentage of the down payment that most families can afford, and find security companies to become the most important issue, but two years ago Some illegal financing guarantee companies, leading to social instability, credibility is not strong, pursuant to Zhengzhou City, issued a "draft."

Around the introduction of different temporary "bailout" policy, Zhengzhou City, local regulations issued in the form of policy, not only to enable the public to get concessions, more important is the implementation of the policy will be a long-term, longer-term vision, I believe the effect will be better.

In this regard, Zhengzhou City housing security and the Real Estate Board staff said that this policy has been drafted two years ago, not to the current market and to develop, but it can not save the city, but the timing just in time for the introduction of this sensitive point in time only.

As early as in 2001, on the establishment of Zhengzhou City, Zhengzhou housing home company limited by guarantee, is the Zhengzhou Municipal People's Government, is part of Zhengzhou City Housing Authority to carry out only one housing home loan guarantee business security company.

View

The introduction of the policy

Bailout is not in the strict sense

In Li Xiaofeng view, "draft" of the introduction, there are still so little bailout mean, be a government in the purchase of the policy the same premise, play the enthusiasm of local small signal.

He said that the core real estate macro control is limited to purchases and mortgages, these two have not changed in Zhengzhou City, so this "draft" The introduction of the bailout is not in the strict sense, but a patch on the original policy.

"Some developers do not know for what purpose, mouthing the property market, price houses, public opinion was enlarged, but on the Zhengzhou market, this is the case, the price behavior of individual companies more financial stress or need marketing tools. "he said.

However, he judged, if monetary policy is tightened in the second half, the developer of the days will slowly become uncomfortable, then maybe there will be a systematic price cuts throughout the city, but the future is in the end how, now is not a good judge.