Politburo Signals New Real Estate Policy Implementation

The Politburo shifted language from research to implementation of long-term real estate market stabilization:
The central economic work conference held at the end of last year: to speed up the study of the establishment of the system in line with national conditions, to adapt to the laws of the basic system and long-term mechanism.

This year's government work report: speed up the establishment and improvement of the real estate market to promote the steady and healthy development of long-term mechanism.

From "to speed up the establishment of research" to "speed up the establishment", and then to "accelerate the formation", which is the rhythm, you should know it!
What does this mean exactly? Aligning short-term lending policy with long-term policy goals (tighter credit) and aligning home prices with the needs of homeowners, not short-term speculators:
Capital University of Economics and Trade Land Resources and Real Estate Management Department Director Zhao Xiucui:

The establishment of long-term mechanism to stabilize the real estate market, to achieve "the house is used to live, not used for flipping" positioning is essential. Long-term mechanism is necessary to meet the national conditions, but also to adapt to the laws of the market, its content should include: two-way regulation of supply and demand to achieve balance between supply and demand; according to different housing needs to take different policies, there is pressure to meet the basic housing needs at the same time, Demand for the development of the rental market, the establishment of rent and housing system; for urbanization to provide in line with the needs of marketable diversified land and real estate; the implementation of local government responsibility, the city policy to develop real estate control policies.

Director of Research Center, Yi Ju Research Center, Yan Jujin:

The changes in the wording suggest that in the establishment of long-term mechanisms, it has not been in the research stage, but to continue to form the operability and executable text of the time.

At present, the idea of ​​long-term mechanism is more mature, the text is more clear, some of the details of the content is also in the process of continuous improvement. It is expected that similar real estate tax, 70 year property rights, the restriction of the purchase policy, the development of the leasing market, the supply rules of the land market and so on may be written into the real estate market long-term mechanism of the content.

Bank of Finance Research Center senior researcher Xia Dan:

From the establishment of research to speed up the establishment and formation of the top of the property market to further accelerate the design requirements, reflecting the urgency of establishing long-term mechanism. At present, real estate control measures are mostly short-term fast fire, part of the means is not suitable for long-term use, real estate tax, land supply and other medium and long-term smooth property market means still can not be absent.

Wrote here, Xiao Bian and then look at the expert point of view, the establishment of the real estate market, the basic system and long-term mechanism, policy involves four major areas:

First, the housing finance, policy housing finance will be an important content; Second, the tax field, the real estate tax is very loud, but still looking for a suitable time to launch; Third, the land area, for example, how to get through collective construction land and state-owned construction land, to achieve accurate land control; Fourth, the field of affordable housing, a noteworthy aspect is how to establish affordable housing for new city residents.
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The Politburo is also targeting financial system risk:
Bloomberg: China Ups the Ante in Bid to Quash Financial Risk: QuickTake Q&A
Now that it has the politburo’s backing, the campaign to reduce financial risk will probably be stepped up. Financial News, a publication run by the central bank, said in a front-page commentary April 24 that more de-leveraging measures are likely to be introduced. Such a campaign, particularly if it’s not well coordinated, could trigger credit events, sudden periods of tight liquidity and an uptick in volatility in the short term, UBS Group AG economists said in an April 26 note. The market correction may have further to run, with China’s economic recovery giving authorities confidence to ramp up de-leveraging, says Ken Peng, an investment strategist at Citigroup Global Markets Asia. That said, the government will want some level of market stability ahead of a twice-a-decade Communist Party leadership reshuffle later this year.

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