High Demand for Government Housing in Beijing

In order to ease housing demand, the Beijing government has a policy of selling what would be best translated as "buyer occupied" housing. These homes are built by the government (though maybe through a private developer) and sold to a buyer who will live in the home. The buyer cannot sell the home to another buyer or rent it out. If they wish to sell and move, they must sell it back to the government. In order to buy a home, a buyer must get on the wait list.

Govt housing expands
The Beijing municipal government will supply 50,000 new owner-occupied housing units in 2014, the Beijing News reported.

The municipal government has authorized 10 sites exceeding one million square meters, according to the Beijing municipal bureau of land and resources. Since their launch in October 2013, demand has far outstripped supply for the 20,000 existing owner-occupied housing units, whose prices are about 70 percent of other commercial housing. They are eligible only to Beijing families without houses or those on the waiting list for affordable housing or capped-price housing.

Getting a flat in new affordable housing project in Beijing like winning a lottery
It's like a lucky draw. More than 140,000 families are lining up for only 2,000 flats on sale in Beijing's first "self-use commercial home" project along the southeastern part of the capital's fifth ring road - about half an hour's drive to the nearest central business district.

What worries applicants is not the commute - it's the slim odds on winning the right to buy. "I know the hope is very small. I still want to try my luck," said Zheng Lin, a married man working in a finance company in Beijing.

Zheng, 29, is among the non-priority group, as he bought a 60 square metre flat last year, using up all his savings of the past decade. But he needs a larger home.

"What if my parents come to live with us, or we want to have a baby?" he said.

......The city plans to supply 50,000 self-use commercial homes this year, compared with total new home sales of almost 120,000 last year.

15,000 new homes are hitting the market now and 300,000 people have signed up for them. The highest price is 22,000 yuan per sqm versus 30-40,000 yuan per sqm in the area, the lowest price is 9,500 yuan per sqm. Clearly there is a great deal of housing demand in Beijing, but prices need to come down.

Since housing prices are relatively cheap, lower costs means that buyers need to pay, value is more imagination in the future. So, there are so many applicants is not surprising.

Can you imagine, there are nearly 300,000 families apply for registration of a total of 1800 Beijing East Fifth Ring source suite of real estate items?

It is so popular for a reason, as a self-housing projects in Beijing (project called "Golden Corner · Meeting Xingyuan"), its selling price is 22,000 yuan / square meter, while the surrounding housing up to 30,000 long-40000 million, which is the traditional two kilometers near the mansion - Xinghewan [ News Price apartment review ].

Since housing prices are relatively cheap, lower costs means that buyers need to pay, value is more imagination in the future. So, there are so many applicants is not surprising.

15,000 units have been market

Beijing is determined, self-occupied housing as " common property nature ", since the type of real estate purchase live, in principle, not be transferred within five years; five years after the transfer, in accordance with lots of time to buy commercial housing prices and the commodity owner-occupied housing 30% of the price difference is the price to pay land revenue.

January 2014, "Government Work Report" voted by the National People's Congress in Beijing Fourteenth second meeting for the first time clear from the nature of housing for common property, the "already implemented 20,000 owner-occupied housing units" Edit as "the implementation of 20,000 sets of common property nature of the owner-occupied housing."

· Meeting XingYuan including Jinyu account, as of early May, Beijing already has nine housing projects from the official market, the progress of various projects between slightly different, some projects are still in the stage of online purchase, some projects have entered scene confirmed links, there are projects already started networking audit buyers who qualify, but that nine projects were not entered Yaohao sales link.

Total supply of these nine projects 15,000 residential units, of which the highest price is 22,000 yuan / square meter, the lowest price is 9500 yuan / square meter.

What is a self-housing? According to Beijing Municipal Construction Committee's interpretation was: since housing is the real estate development enterprises through the "limit prices, competing land" and obtain land use rights, in accordance with the limited sales targets, defining the principles of the sales price, to meet residents own homes, improve sexual housing needs of commodity housing.

Since housing dwelling construction area of ​​90 square meters mainly sales price compared to the same principle, lots of low-quality housing with about 30%.

Who is eligible to buy housing? Its essence is also a commodity, so Beijing on buying more broadly defined objects, that Beijing has qualified home buyers can buy, but can only buy a set.

Buying groups remain a priority and non-priority points, subject to the following conditions of the family can pre-emption: First Beijing hukou houseless families (including spouses and minor children), in which a single person must be at least 25 years of age. Second, Beijing's affordable housing, commodity housing waiting families.

Due registration for the purchase of hundreds of thousands of families from the housing, but the listings are limited, so developers who will confirm the final wave number can be purchased under the supervision of government departments.

Yang Bin, director of the Beijing Municipal Construction Committee, said in an interview a few days ago, ending the first quarter of this year, Beijing 50,000 housing units since the annual supply plan has been completed by more than 30 percent of land available for housing built with the way in, the remaining houses will be in the second the third quarter in succession supply, the current system has been incorporated into the security room home will solve listing within two years.

"Every year by a new supply of housing land development 80,000 to 100,000 units, from this year's situation, since half of the housing, this amount is still quite large." Yang said.

The fourth quarter of last year, Beijing has just launched from the housing policy and housing land supply process with built 20,000 units. Thus 2013 and 2014 Beijing is expected to launch a total of 70,000 units from the housing.

Lifting the appetite of buyers

More and more from the housing market on the Beijing real estate market will have any effect?

Centaline chief analyst Zhang Dawei in its report that, since the large supply of housing and tight credit has affected the Beijing property market. After the 2014 Chinese New Year of the Horse, Beijing rebound volume has not appeared in previous years.

"The total price of less than 200 million yuan from the housing property market a greater impact on Beijing, Beijing second-hand housing prices starting in December 2013 there have been three consecutive months of price declined slightly. mainly due to shrinking demand from housing is also due to lead the market waiting to see. "Zhang Dawei said.

According to the Central Plains real estate statistics, as of now Beijing cumulative transfer land from the housing project containing more than 40 cases, covering Chaoyang, Haidian, Tongzhou [ News Price apartment review ], Changping, Shunyi, Fengtai, Fangshan, Daxing, Mentougou, Miyun, Pinggu, etc. 11 regions, of which a maximum of Chaoyang District, reached the eight projects.

"Most of these projects are expected to enter the market in 2014." Zhang Dawei said.

From the foregoing Jinyu · Meeting Xingyuan statistics we can see, does have three hundred thousand families purchase application has been submitted, but in some self-housing-related forums, you can also find the applicant knew that the success rate is too low and, therefore, not too many expectations. Have "Cougerenao not normal, even if earned in the" applicants this psychological unusual.

Wang, deputy director of Beijing New Normal for Real Estate Research Center brought an objective effect from housing also have their own views. In December last year, when he participated in an online interview, said Xinhua, "function should be to protect the security room, rather than give you a winning temptation."

Wang recently on the new "First Financial Daily" said that his views are consistent with the above interview.

He said at the time, since the subjective goal of housing policy is very good, we can not afford housing in the line up here, but lower than (Beijing Yaohao) car winning rate. Since people can have a house to participate in Beijing for five years who can participate, how much you think about this group?

"Two families, joined the family income levels are the same qualifications are the same, but the first wave number of a person to shake it, and another person five years, eight years, less than a decade are shaking, and even a few years this policies are canceled and you think it is fair to you? "Wang said in a new interview above.

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