Shenzhen Nervous, Hosts Closed Door Meeting With Developers

First tier cities are getting a little nervous as nearby cities ease property restrictions and atrract demand. Shenzhen government recently held a closed door meeting with developers to discuss the trend in the market. Reports say that Shenzhen has already prepared real estate tax cuts and lower down payments on a second home (down 10% to 60%), but hasn't announced easing of buying restrictions. According to a government official, the policies may not be implemented, but it shows the state of the government's state of mind. Shenzhen's GDP growth has slowed to 8%, foreign trade, manufacturing and consumption have all slowed, but the government hopes real estate investment and consumption can strengthen and pull the GDP growth higher. According to officials, Shenzhen also planned to intervene in 2012, but the market picked up and the plans were shelved.

The meeting with developers covered topics such as falling investment and sales, whether the city should adjust policy, if the slowdown in second and third-tier cities will affect Shenzhen, etc.

It's expected the government will be unable to ease buying restrictions or intervene in a serious manner in the next few months, if even this year. The city may try some other indirect policy changes though, which would not qualify as easing restrictions on the real estate market. Importantly, Shenzhen does not rely on land sales for financing government operations, so it faces far less pressure to intervene from a fiscal standpoint.

深圳首次召开房地产闭门会 预计对楼市做局部调整
Recently, market news, Beijing, Shanghai and Shenzhen to purchase the property market will relax, but soon the three were given denied. However, in the second and third tier cities crazy bailout, economic growth seems to be the same pressure in the first-tier cities also began to fidget.

It is reported that on August 6, the Shenzhen Municipal Government special meeting to discuss the current real estate situation. According to informed sources, "China Times" reporter revealed that the Shenzhen property market is ready to make the local minor adjustments, the policy does not comply with market rules limit will completely withdraw.

In addition, the "China Times" reporter also learned exclusively, Shenzhen City has done the relaxation of real estate regulation policy reserves, including the implementation of Qishuijianmian reduce two sets of mortgage money down payment, etc., but did not propose to relax the restriction.

"Central did not relent, reserve policy will not necessarily be launched, but it can reflect the Government's attitude." Shenzhen A government source told the newspaper reporter, compared to 10.5 percent last year, Shenzhen's GDP growth in the first half of this year grew by only 8% , while total imports and exports, industrial added value and consumption are also in decline, so the power consumption of real estate investment and the government hopes to promote economic growth is stronger.

Ready reserve policy

August 6 morning, Shenzhen held a special closed-door meeting, Party Secretary Wang Rong and Mayor Xu Qin were the scene, heard the Shenzhen Planning and Land Committee on the current real estate situation analysis report.

According to informed sources told this reporter, this is the first time this year, the Shenzhen Municipal Government held a special meeting on the discussion of real estate, more than only at the level of leadership in order to participate, while meeting content secrecy.

Prior to this day, the Shenzhen real estate professionals Yinxiang Wu said, the 6th meeting of the municipal government meeting will involve the purchase of the question, whether the purchase of the policy should be adjusted, and discuss how the decline affected if a large real estate development and investment, sales fell for two months will be to deal with, as well as Deep invested in second and third tier cities big and what financial risks and other issues in the field sales Shenzhen downhill will bring.

"After entering the leaders will discuss and decision-making procedures, the government is expected to have a fine-tuning, not a big move." Yinxiang Wu said.

The reporter learned from informed sources, August 5, the Shenzhen Municipal Planning and Land Committee also held an internal meeting on relevant analytical reports to discuss, and make the policy reserves, as meeting the requirements of foreign content is also highly confidential.

According to the reporter, reserve policies and the current local government bailout similar means, is nothing more than Qishuijianmian improve provident fund loans, relaxing fund extraction conditions, and two suites down payment to 60% the proportion of return from Qi Cheng.

Last November, the first-tier cities including Shenzhen, all the two suites down payment ratio increased from 6 percent to 7 percent, needs to improve further suppressed.

The informed sources, early in 2012, when the property market is at the bottom of the adjustment, Shenzhen has done to relax regulatory policy reserves, then consider relaxing restrictions Greeting purchase, because of the greater New inventory.

"But then even the second and third tier cities did not dare let go of control, not to mention the first-tier cities, but fortunately the property market to pick up after six months, Shenzhen is also no longer need to worry about the bailout." The source said, the government in policy reserves, does not mean To launch it, but seen from the current depth of government regulation on the property market has been quite anxious.

When the second and third tier cities constantly bailout means to a new climax, first-tier cities are also simmering, Nansha District, Guangzhou has relaxed the restriction, while Beijing and Shanghai recently also reported to release more than 140 square meters of non-ordinary residential restriction, recently Shenzhen also reported to relax the restriction, regulation of the fall of the first-tier cities continued rumors. But then the three have denied the rumors restriction relaxed.

As Shenzhen Planning and Land Commission think tank research institutions, Shenzhen Real Estate Research Center Renwang Feng said publicly that the first-tier cities including Shenzhen, in the short term there is no possibility of the purchase of deregulation, at least during the year will not loosen restriction policy.

"Not to cancel the purchase, but adjust the purchase or called 'optimization restriction policy', the country expressly to cancel the purchase of the city is not much, but the 'optimization' of the lot." Yinxiang Wu predicted that the next Shenzhen tightness of the different units will vary .

"Not many cities bailout space to relax the restriction is not possible, the municipal government of this meeting is to understand the situation, and the need to adjust the central bank to apply two sets of mortgage, deed means of subsidies and other municipalities also need another special meeting resolutions, these three months impossible within the policy. "the insider said.

However, the source also revealed that the government will do minor adjustments, such as a limit that is obviously not in line with market rules will exit administrative controls, such as social security contributions of time and the ability to repay may also be adjusted.

Government deregulation power stronger

Currently, Beijing and Guangzhou, high-priced real estate has relaxed control. In fact, the recent relaxation limit in Shenzhen also.

"This year the government has to find developers met twice, and wants us to stabilize prices, not the price, of course, does not allow price increases." Assistant general manager of Shenzhen housing prices in a local told this reporter that if the developers cut prices, and to jumped back on the case can not be prepared.

It is understood that the Shenzhen started from September 2010, to set up the new disc record decline in price of 15%, exceeding the magnitude of the need to re-record. From the beginning of April 2013, Shenzhen sign deal on new homes net monthly price is strictly controlled, with an estate, housing prices rose month to be zero, not floating, only the price, not the price, or not net signed.

But recently, housing prices found that the adjustment is open to plus or minus 3%, net price increases can be successfully executed.

"Developers with the government when they are made to meet the requirements, the Government liberalized limit, in fact, we expect that this is a 'short-lived' policy, market about the line, the government will certainly be let go." Assistant general manager of the aforementioned housing prices said.

Insiders also believe that the four first-tier cities, Shenzhen does not rely on land finance, will not do stands out, the first bailout power is not strong.

However, a government department who bluntly Shenzhen, Shenzhen and do not rely on land finance is a pseudo-proposition, Shenzhen do not want to live off the land is not financial, but no way to rely on, because it is the scarcity of land, originally developed district of Shenzhen Dapeng want to do real estate, but because limited by ecological control lines and CPPCC members were strongly opposed and frustrated.

"Shenzhen Metro from three starts to take all the land and financing, the government does not pay. Former sea develop optical infrastructure investment will need 389.8 billion yuan, mainly by land finance, infrastructure, land sales did not start well, so Hong Kong Manufacturers do not want to. "above government sources said.

And, even more noteworthy is that the Shenzhen Special Economic growth is also under pressure in 2013, Shenzhen's GDP growth of 10.5% in the first half last year, there are 9.5% increase in the first half of this year grew by only 8%, industrial and consumption growth fell significantly. More worrying is that the first half of this year, total imports and exports fell 32.2 percent in Shenzhen, while last year it was 33.8%.

These government departments told reporters, in an overall decline in consumption and exports, the only strengthen investment in fixed assets, including real estate investment accounted for 40% share of non-real estate accounted for 60%, but the first half of the non-real estate investment growth also only 7.6%, the Government hopes the real estate investment.

"Government deregulation of power is very strong, but because of the guidance of the Central bidirectional control, not easily untied it." The source told reporters that the current market has to pick up signs, if the second half continues to improve, reserves policy will be like Like in 2012, to send [ the latest news Price Unit Reviews ] no use, but if the market liquidity relax, two sets of mortgage down payment may be reduced.

August 6, Shenzhen Real Estate Appraisal and Development Center announced that beginning from September 1, Shenzhen readjust hand housing transfer to assess the price. The center, the official said, it's just routine annual adjustment, the adjustment last time was in July, as the price is raised or dropped, will be determined based on the current property market is currently unable to give the exact answer.

Market participants expect the assessment of second-hand housing prices may increase, which would directly increase the second-hand housing transaction taxes.

"This is adjusted according to the requirements of the tax authorities, the tax pressure this year, while second-hand housing in addition to taxes, limited contribution to economic growth, but the new house is not the same, so the government is generally only pay attention to the new home market, you can directly stimulate investment." Inside the government sector analysts said.

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