Real Estate Roundup

Nanjing will eliminate its "buy a home, get a hukou" policy on August 1.

iFeng: 8月1日起南京“购房落户”政策将彻底废止
If you meet the above conditions and intend to settle in Nanjing, quickly seize the last chance, hold the relevant application materials such as real estate license or real estate license, and apply to the public security office registration window where the housing is located. From August 1st, 2018, the “purchase of households” policy in Nanjing will be completely abolished.
Shenzhen banks are hiking mortgage rates.

iFeng: 深圳房贷利率全线上调:首套房上浮至15% 二套房上浮至20%
On July 25, the 21st Century Business Herald reporter learned that the interest rate of the first suite of the construction bank's Shenzhen branch housing loan was adjusted from the benchmark interest rate by 10% to 15%, and the second suite to 20%. In addition, for the past two years, loans (including credit cards) that were overdue for two to five times, up 25%.

At this point, the interest rates of the first suites of the four major state-owned banks, China Merchants Bank, and CITIC Bank in the Shenzhen mortgage market have all risen by 15%, and the second suites have risen by 20%.

A real estate lender said that in the Shenzhen mortgage market, the four major banks and China Merchants Bank have a large market share.

A credit officer from a large Shenzhen bank said that the current mortgage is mainly for the first home, and second home mortgages are very few because the down payment is 70 percent. At present, the first quotation of the first suite of the bank is still 10% above benchmark, but due to limited lending quotas and strong demand, some branches have already hiked to 15%.
Meanwhile in Xiamen, a story of consumption and fertility crushing home prices.

Reuters: In China's debt-laden Xiamen, real estate boom chokes consumption
Yang Xiaodao, a 26-year-old civil servant in the Chinese city of Xiamen, says taking out a 30-year-mortgage on a two-bedroom apartment with her husband was the most regrettable decision of her life.

Although their parents covered the 1.5 million yuan (£172,285) down payment on the 2.9 million yuan flat, mortgage payments eat up more than 70 percent of the couple’s combined income of about 10,000 yuan a month - average for the city.

“Our spending power has plummeted,” Yang said. “We do not dare to have a kid. We do not dare to buy a car. We do not dare to travel.”
Inventory in the top 100 cities is down, with lower-tier city inventory at 10-year lows.

iFeng: 百城住宅库存连跌35个月,三四线库存创10年新低
It is worth mentioning that in the 100 cities, the inventory of 74 cities showed a year-on-year decline, with Dalian, Hangzhou and Jinhua falling by a large margin, with the declines of 56%, 48% and 46% respectively. In general, the number of cities with a year-on-year decline in inventories has also led to a decline in the size of the 100-city inventory.

...More importantly, the ratio of deposits to sales in third- and fourth-tier cities is more obvious. The current value is the lowest monthly value since 2009, that is, in the last 10 years, the de-chemical cycle of the third- and fourth-tier cities reached the lowest value. Of the 24 cities where the ratio of deposits to sales is less than 6 months, 17 cities are third- and fourth-tier cities.

Specifically, among the 100 cities, 19 cities have a ratio of deposits to sales of more than 16 months. The destocking pressure of such cities is still relatively large; 21 cities have a ratio of 12 to 16 months. In this case, the destocking cycle of such cities is relatively moderate; 60 cities have a ratio of deposits to sales of less than 12 months, and the destocking period of such cities is relatively small.

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