China lowers house prices for homebuyers, speculators beware of new regulations
“Flexible home-buying credit policies will be implemented in accordance with the specific conditions of the real estate market in each city and make good use of financial policies to serve the economy,” the newspaper said. China Daily (China) opens the article about policies to help control real estate prices in the world’s most populous country.
Accordingly, in a joint meeting held on Tuesday focusing on the financial sector’s support for the real economy, the People’s Bank of China (central bank) and the Insurance Regulatory Commission and Bank of China jointly emphasized maintaining the position of “housing is for living, not for speculation”.
The two agencies also agreed that different housing credit policies should be applied in different cities to better meet the reasonable housing requirements of homebuyers.
Chinese house prices are expected to drop to make it easier for people to access. Photo: Dy Khoa.
To achieve the above goal, a prudent management system should be implemented in the financial-real estate sector. Accordingly, risks between projects and businesses should be segregated. And real estate financing needs to remain stable and orderly.
Chen Sheng, President of China Real Estate Data Academy said, “The meeting met the basic needs of the real estate industry in the whole system of the real economy. At the same time, it required the whole industry to maintain the cycle of stability and morality”.
Such requirements cannot be achieved without the healthy and stable development of the real estate market, Chen said. He expects stronger, more comprehensive and more effective measures for both homebuyers and real estate corporations to deal with related issues.
The performance of the real estate market in the first quarter reflects the need to issue more policies to further stabilize the real estate market, better serve people’s consumption needs, and shape the circulation of the real estate market. smoothly in the industrial chain in terms of land, development, purchase and sale and home delivery, said Li Yujia, Research Team Leader at the Guangdong Provincial Center for Residential Policy Research.
Some cities relax restrictions on buying houses
Mr. Wang Xiaoqiang, Principal Analyst of Zhuge Real Estate Data Research Center, believes that there will be further adjustments including reducing payment ratio and cutting home loan interest rates.
Mr. Wang added that more than 85 Chinese cities have announced policies to encourage reasonable demand by easing restrictions on home purchases since the beginning of the year. But first-quarter housing market performance suggests more support is needed to boost housing demand.
Adhering to market and order principles, financial institutions will be interested in providing financial services to large real estate businesses in handling risks and project mergers and acquisitions. .
The previously announced policy adjustment is primarily intended to encourage reasonable home-buying goals, that is, easing purchase restrictions, lending and sales restrictions, or adjusting mortgage interest rates. challenge.
“But so far, these supportive policies have not been enough to ease the financial difficulties of private real estate businesses, and the confidence of these companies has not been fully restored,” said Chairman. President of China Real Estate Data Academy said.
A commercial street in Beijing, China. Photo: Dy Khoa.
For people who have difficulty paying home loans due to the Covid-19 pandemic, commercial banks need to optimize credit measures in a timely manner and flexibly adjust individual home mortgage repayment schedules. this multiplier.
During the current outbreak, many Chinese cities have been affected, and the personal incomes of some residents have been temporarily affected. Chen Wenjing, deputy director of research at the China Index Institute, said measures aimed at repaying these homebuyers should be expected to stabilize the market.
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