No Change in Real Estate Policy, Individual Cities Adjusting

This article is notable not so much for the content, but that it exists at all. The government is trying to maintain narrative control over the real estate market. Too soon to call this "Don't believe your lying eyes!"
iFeng: “一城一策”不等于放松调控 “房住不炒”定位没变

"One city, one policy" is going on

However, since the beginning of this year, news of the “relaxation” of individual local property market regulation policies has been heard from time to time. It is worth noting that many so-called policy adjustments are not supported by official documents, and are even explicitly denied by local governments. For example, the recent unspoken comments on the policy adjustments such as the cancellation of the price limit in Jinan have been circulated on the Internet. In response, the Jinan Urban and Rural Construction Committee spokesperson reiterated that the regulation of the real estate market will remain unwavering.

Observing the policy direction since this year, not only has the overall regulation and control not been loosened, but the trend of “one city and one policy” has become more apparent.

For example, Fujian Province proposed to implement the main responsibility of the city, prepare and implement the housing development plan, and implement the “one city and one policy” implementation plan in Fuzhou and Xiamen; Henan Province clearly adheres to local conditions and comprehensive measures, and implements “one city and one policy”; Shanghai said it is studying Formulate and improve the long-term mechanism for the regulation of the “one city and one policy” in the real estate market. In addition, Hangzhou, Ningbo, Chengdu, Changsha and other places will clearly carry out the pilot of the “one city, one policy” regulation of the real estate market. Preventing high land prices, high housing prices, and high leverage risks are still the focus of the local two conferences at the beginning of the year.

Zou Linhua, head of the housing big data project team of the Institute of Finance and Economics of the Chinese Academy of Social Sciences, analyzed this reporter's analysis. The real estate market varies greatly and the situation changes rapidly. The central government proposes to consolidate the city's main responsibility, that is, to let local governments implement according to specific conditions. Regulation and control, combined with local conditions to complete the regulatory objectives. Local governments should avoid losing control of the property market, neither big nor big, or they will assume responsibility. In the process of urban policy, it is necessary to be wary that the impact of individual local governments' impulses or regulatory policies for growth and demand and financial pressure is inconsistent with the original intention, but "one city, one policy" is still the future direction.

Adhere to the regulation of the property market without wavering

Wang Menghui, Minister of Housing and Urban-Rural Development, said recently that since last year, the real estate market has generally maintained a stable operation, and market expectations have also undergone positive changes. First, the growth rate of housing transaction area slowed down; second, the housing transaction price was generally stable; third, the housing market is expected to gradually become rational.

Can this steady state potential continue?

Zou Linhua believes that the property market in the second and third quarters will still be based on stability. On the one hand, the central direction of regulation will not change in a short period of time, and local regulation will be carried out under the supervision of higher authorities; on the other hand, the real estate market needs the support of funds and credit, and there is no major adjustment in this aspect. The possibility. Individual cities have a slight warming phenomenon, but will not affect the basic trend of the country.

Wang Menghui said that in 2019, the long-term mechanism work plan for the stable development of the real estate market will be implemented steadily, and five adherences will be made: the first is to insist on the position that “the house is used for living, not for speculation”; The housing market system and the housing security system; the third is to adhere to the implementation of the city's main responsibility, due to urban policy, classification guidance, the implementation of stable low prices, stable prices, stable expectations; the fourth is to adjust the structure, transfer methods, and vigorously cultivate the rental market Focus on solving the housing problem of new citizens; the fifth is to maintain policy continuity and stability and prevent ups and downs.