Demand For Mortgages Up, But Banks Slow to Act

It has been said many times by many observers and analysts: unless there's a restarting of the credit creation cycle, there isn't going to be a significant recovery in the real estate market. Banks offered discounted rates on the way up because they were competing for home loan business; from the bank's perspective, they are being asked to do the government's job by discounting rates in a bear market. Buyer sentiment has also shifted. Some buyers looking to buy now want the discounted rates, but for buyers on the sidelines, they'll prefer to wait and buy at lower prices in a few months or in 2015.

房地产贷款困局：逾期贷款攀升 银行投放不松口

Before the National Day, the central bank, the CBRC issued a heavy file, relaxed mortgage limit for the property market deregulation. All of a sudden, the market interpreted on the "bailout policy" and "real estate rebound" become mainstream. After the central bank mortgage New Deal, a number of banks in the implementation of the National Day and expressed their support.

According to "China Business" reporter, at present most banks actually not optimistic about the development of the real estate industry, a limited relaxation of mortgage lending to real estate transfusions.

In addition, with respect to the more direct real estate development loans, due to the August bank loans overdue continues to rise, banks in the capital put in the slightest, "not promoted" and lenders are more stringent scrutiny than before. At the same time, large housing prices and housing prices increased polarization of small enterprises financing costs have risen further trend.

Property pick up false proposition?

September 30, the central bank and China Banking Regulatory Commission jointly issued the "Circular on Further Improving housing finance service of the notice" (hereinafter referred to as "Notice"), presented for the first set of loans to buy ordinary housing families, the minimum down payment ratio of loans to 30 % interest rate limit is 0.7 times the benchmark lending rate, the specific banking financial institutions independently determined by a risk-based.

Subsequently a number of banks expressed their execution regulators mortgage New Deal, the implementation of the Bank of China Merchants Bank took the lead mortgage New Deal, the implementation of official documents issued under Head mortgage New Deal.

State-owned big firms have expressed their support, including China Construction Bank, said no individual housing loans for recording or home loans have been settled, under the name of non-family housing, apply for a loan to purchase a home, do the first suite loan policies. To own a home and have settled accordingly family home loans, to improve their living conditions to re-apply for loans to buy homes, may refer to the first suite loan policies. Specific operations in the hands of local branches.

ICBC said that under the new mortgage policy requirements, for loans to buy the first set of family housing, the minimum down payment loan ratio was 30%, the lower limit of the lending rate is 0.7 times the benchmark lending rate.

ABC also clearly support the focus on priority basis to meet the residents of the first families to purchase ordinary commercial loan demand, and actively support the improvement of the type of housing credit demand, the reasonable needs of buyers, will strive to provide better financial services.

However, the implementation of the New Deal has just begun, there is only selling gimmicks, most consumers do not buy it now.

"Bank interest rate mortgage now enjoy 30% off difficult, the new policy is to be able to buy a suite in the lending rates has some concessions, but from the perspective of buy, we pay more attention or prices." Who lives in Beijing's Chaoyang District Zhang Yi told reporters that now the real estate industry downturn, the price may fall at any time, waiting to see the end to make a decision to buy a house more appropriate.

Zhang Yi believes that short-term real estate new preferential policies will not be canceled, the policy on the real estate market there are more expectations.

Beijing property market performance in the National Day seems to confirm this view. It is understood that, under the New Deal mortgage, the amount of net signed the Beijing property market holidays still lower. Six days before the National Day holiday, Beijing net signed volume of 510 residential units, a substantial decline 38.3% over last year, but slightly higher than the 454 units over the same period in 2012, the second since the 2009 low. Among them, the residential new home net signed 472 sets, down 39.7%; net signed second-hand housing was only 38 units, down 13.6 percent, the lowest since 2009 over the same period.

"Policy signals to the market confidence in expanding the potential demand of buyers, but real estate is caught in a dilemma, do not know the price or prices to maintain good now." Told reporters a small real estate business, real estate companies need to accelerate the sales back and forth models, price promotions are a better choice. However, they let buyers preferential prices lower purchase intention.

Under "Once prices fall, people will think to buy a house on the loss of a buy, purchase intention is not so high, some real estate developers in stable prices, and the way to take a lot of real estate prices is unchanged: the real estate agent told reporters. disguised concessions. "

Faced with regulators to relax mortgage requirements, the four lines of a more positive attitude, and shares the line is mostly silent. A state-owned retail department responsible person accusing him: "to increase the delivery of mortgage loans is a social responsibility from the perspective of risk loans, the risk of such loans relative to other types of loans are smaller, but the profit is very thin line mortgage shares. Many are the amount of walking, they will tend to high profits and policy support is also small and micro business. "

The official said, after the bank interest rate market, mortgage lending has become a sad business. "Although the policy provisions, but banks are market-oriented financial institution, after all, there is a certain flexibility in the implementation." More importantly, most of the bank's credit structure relatively fixed mortgage is essentially controlled by the total amount. Therefore, this loan to relax financial support for the real estate business is very limited.

Development of more stringent loan review

张怀亮 Jingzhou City, Hubei Province, is a real estate company's chairman, spent nearly 300 million yuan to build a new property in the zone, and now processes more than half of the project, but funding has not kept pace.

"Find bank loans simply will not work, because the banks do not loan now is the meat and potatoes of real estate development loans, bank loans so few businesses, is simply not on the list do not want to." Zhanghuai Liang told reporters that he himself looked for places Shares of the four lines and several lines, but were refused.

"In Jingzhou, a little better place to house prices in 6000 yuan / square meter, according to 3000 yuan / square meter mortgaged will not work, only to find some trust companies to do, but it is not easy getting." Zhang Huailiang that even small Housing prices are willing to accept high interest rates, are not given the bank's favor.

"For the real estate development loans, banks have always been very cautious, but the implementation of the list system. Most companies are national top ten and top five places, very little cooperation with SMEs." Bank of Jingzhou City, sources said.

The source said that the bank's credit for the high-risk industries will be particularly focused on security. "In particular, the state-owned big firms, profits less okay, if became bad trouble."

Its statement, the bank now implementing loan list system, which is agreed by the head office, which is the leading real estate companies to give financial support to risk a lot of relatively small. "Big business loan interest rate is not very high, reaching an annualized rate of 9% is very good."

It is noteworthy that, a large real estate enterprises and small and medium real estate companies are increasing polarization. Both very different living environment.

"A lot of banks are the leading real estate companies will be given credit as a customer, but the funding needs of large enterprises is not so much, do not need so many lines of credit small business loan is to run around, and sometimes had to choose usury financing, creating a vicious cycle. "Zhang Huailiang said it basically does not touch the second and third tier cities Trust project, and usurious interest rates, but small business is not able to stand.

A stock line who told reporters: "August bank overall size of loans overdue more are added, so that banks tightening on capital invested, risk investigation strengthened and more stringent project review some."

The source also told reporters: "Most of the banks is not optimistic about the current real estate business, the loan will be limited to so few banks to support mortgage lending, as banks like loans to developers, it is not possible.."

It is understood that just before and after the National Day, the large housing prices in bank loans moves frequently. September 29, Vanke Wuhu offshore project development legendary Wuhu Branch of China Everbright Bank intends to apply for borrowing 290 million yuan; September 25, investment property in Shenzhen, a wholly owned subsidiary of China Everbright Bank intends to loan 500 million yuan, valid for three years. Subsequently, the subsidiary of its holding subsidiaries also Qaeda Foshan City Investment and Development Co., Ltd., Foshan Evian Pegasus Park (information, buy, forum) Real Estate Co., Ltd. provides no more than 820 million yuan of bank loan guarantees.

Meanwhile during the National Day, Handan real estate enterprise collective foot incident also caused the industry shock. Handan Golden Century Real Estate Development Co., Handan Zhuo Feng Real Estate Development Co., Handan Wan Poly Real Estate Development Co., Ltd. Hebei silver letter transport facilities, Hebei Jin Kui Real Estate Development Co., Ltd. Handan County, Long co concrete, Handan Muan private fund raising and lending defaults Dongshan iron ore, PCC Central Manufacturing Co., Ltd. Hebei Green US source animal husbandry, dozens of companies focused on the outbreak, were involved in private lending.

"Relax does not mean that the real estate mortgage will pick up, at least the second half of small and medium housing prices in the days of more sad." Bank said the shares.