Hangzhou Eases Buying Restrictions, Developers Hope to Raise Prices

Hangzhou has eased buying restrictions on homes larger than 140 sqm. In Xiaoshan and Yuhang districts, buying restrictions have been eliminated. The news has boosted the optimism of developers, who expect an increase in sales. Some of even speaking of prices increases. This carried over into the stock market, where Chinese shares have been rallying.

July and August sales tend to be light, so these policy adjustments may produce some positive results in the data, but whether it sparks a reversal is another story. Once market sentiment has changed, almost nothing can change it back. These policy changes affect investors the most and they are the most sensitive to credit conditions and sentiment.

[This official microblogging news release, immediately caused a chain reaction of developers, local industry and even rumors developers to price adjustment news. However, these adjustments brewing developers did not disclose the price or how much, but said, depending on the market situation to be]

Around at 18:00 on July 28th, Hangzhou real estate circles in multiple micro-channel group biography, Hangzhou will be released the same day news of the ban on the purchase of the official website.

Subsequent 18:30, Paul lived in Hangzhou Housing Authority (Housing Security and Housing Authority) official microblogging issued a new message: "This year, the real estate market in Hangzhou overall smooth, but the housing supply and demand of regional and structural contradictions highlighted by the study, the municipal government agreed that from at 0:00 on July 29 onwards, the city purchased Xiaoshan District, Yuhang District, housing (including commodity housing, second-hand housing) without providing housing situation query records; bought the main city of 140 square meters and more housing (including commodity housing, second-hand housing) query records without providing housing situation. "

This official microblogging news release, immediately caused a chain reaction of developers, local industry and even rumors developers to price adjustment news. However, these adjustments brewing developers did not disclose the price or how much, but said, depending on the market circumstances. A Xiaoshan developer, said yesterday after the opening of the purchase, sending him a lap SMS, temporarily sold four houses. "These customers fear price increases, would also hesitant, a policy immediately" pay "the."

According to incomplete statistics, as of now, there are already more than 20 cities have liberalized the purchase. "From a market perspective, Hangzhou is the first release of the quasi-tier cities, many second-tier cities will be stronger than normal release of the citizenry." Managing Director of CB Richard Ellis Hangzhou Company 马英枢 said.

Long-awaited policy

The previous week, maybe a week most local developers suffering. "There was news that the policy will be out on Monday, he said later on Friday will be the policy." Hangzhou Xiaoshan A local developer of the " First Financial Daily "correspondent said many times before they were about local government talk.

Reporters learned yesterday from the Hangzhou Municipal Government led an internal seminar held again, and ultimately make a decision. The result: the main city of Hangzhou, more than 140 square meters (including 140) release the purchase, Xiaoshan District, Yuhang District, the purchase of a comprehensive ban.

This is the year after the "two sessions", a set of multiple sets of scenarios. Multiple developers told reporters, after the purchase of Hangzhou has been lifted in two versions, one of which is the release of Xiaoshan, Yuhang district, there is a more than 140 square meters, including the main city.

They have been holding the lowest expected value, it is unexpected that the scales yesterday in Hangzhou government policy for many developers feel the excitement. This is multiple developers that are living on the recent Minister of Construction , Chen Gao improve the real estate policy comments made ​​"in which the first is to do everything possible to digest inventory" implementation.

It is one of the cities of Hangzhou high inventory, before June this year, Hangzhou housing 4859 sets the average monthly contract, the average transaction price of about 15,000 yuan / square meter, according to the market rate of digestion before six months, 132,300 sets of Hangzhou property market housing stock , to melt cycle over 27.23 months.

This transaction sets, compared with the same period of the past six years, came in third from the bottom, just above the market regulation has just introduced in 2010 and 2011. The first half of last year, 41,061 sets of real estate transactions in Hangzhou, totaling 4,466,500 square meters, the average transaction price of 17,790 yuan / square meter. Compared with the first half of last year, housing turnover Hangzhou fell almost exactly one-third.

Developers want to raise prices crashed

Compared with the general mentality of the developers of the carnival, some third-party agencies seemed more rational. "We care about is whether to wait and see attitude can lift? Trading volume is to expand? Whether prices will go up?" 马英枢 said.

In this regard, the executive president of China Easy Home Dingzu Yu believes that the purchase of a subsequent relaxation of the problem is: in the end can not pull the deal?

Behind these fears is to invest in a slowing trend. Data show that in 2014 1 to June, the national real estate development and investment 4.2019 trillion yuan, up by 14.1% nominal growth (after deducting price factors, the actual increase of 13.1%), the growth rate down 0.6 percentage points lower than 1 to May. Among them, the residential investment 2.8689 trillion yuan, an increase of 13.7%, the growth rate down 0.9 percentage points, the proportion of real estate investment was 68.3%.

Real estate investment is decelerating many developers lack confidence. Yesterday's deregulation policy for many developers feel confident of recovery. "Xiaoshan, Yuhang stocks have been relatively large, so go stocks become the main theme of Hangzhou, Xiaoshan, Yuhang fully liberalized in favor of focusing the purchasing power of Zhejiang Province, the main city to adopt a" Paul just need "strategy, is conducive to maintaining the stability of the entire market. "A Xiaoshan local developer, told reporters this scale very well just the right policy.

"First of all, wait and see attitude short-term fluctuations may occur, resulting in a large apartment sales rose slightly in the short term, but it will not last long. Market is only a pre-release suppressed demand, but the demand itself does not significantly increase the oversupply melody has not changed From the market supply current to a small apartment just need disk-based situation, an increase in sales of large units can not effectively solve the inventory problem. "马英枢 told reporters destocking will be a relatively long-term task, and to cancel the purchase just sounded the opening percussion. And in the long-term task, expect prices back up it unrealistic.

However, some developers are trying to adjust prices. "Prior to the price war hit too hard, more than the smell of gunpowder in the area are more concentrated close combat name a price war, this time just to have the opportunity to tune a tune, now guaranteed pretty good." Yesterday, TOP10 of a developer told reporters that some of their real estate brewing price adjustment in the near future.

Previously, Hangzhou Gouzhuang plate, bridge plate competition is very fierce, and many developers are close to the cost of the opening price, the number of developers in order to tout brawl occurred many times. "The market is too difficult to do, particularly difficult this year." One developer Hangzhou Bridge plate revealed that many disk or to just be family-based, but this adjustment will bring confidence in the market implies that surface.

It is noteworthy that, just yesterday, Xuzhou quietly loose tie. Since August 1, the purchase of real estate is no longer available Xuzhou purchase inquiry proved to sign and print real estate is no longer need to enter queries proof number when the contract of sale. But there is no formal document issued only verbal notification, without saying anything. This means that the purchase of Xuzhou fully liberalized policy, regional policy implementation will no longer purchase.

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