Guangzhou Residential Limit Loose: One-size-fits-all Shear Price Limit Rising

 Guangzhou Residential Limit Loose: One-size-fits-all Shear Price Limit Rising

Guangzhous property market is loosening its ties and taking new actions.

On the 21st, a reporter from China Securities News (ID: xhszzb) learnt from a person close to the Guangzhou Housing and Construction Commission that Guangzhou changed its one-size-fits-all Price-limit policy to adjust the Price-limit according to the fluctuation of the surrounding property prices, so some of the property Price-limit may rise.

Price Limitation Policy is still Optimized in Implementation

On December 19, Guangzhou Municipal Housing and Construction Commission issued a document announcing the improvement of the sales policy of commercial clothing real estate, including apartments and shops. Before March 30 last year, the land transfer project did not limit the sale objects, and could be sold to individuals.

In fact, not only commercial clothing property, Guangzhou housing project price limit policy has quietly loosened. Reporters learned that Liwan District, Haizhu District, Guangzhou, and many other real estate prices have increased through the use of online tags.

A person close to Guangzhou Housing and Construction Commission disclosed that Guangzhou changed the one-size-fits-all price limit policy to adjust the price limit according to the fluctuation of the surrounding property prices, so some property prices may increase.

Does this mean that Guangzhous price limit policy is also beginning to loosen?

A real estate researcher told reporters that Guangzhou has indeed seen a rise in price limits. Many Guangzhou local real estate companies also confirmed the news, a real estate company staff also told reporters that the current price of housing should be mainly stable, the rise and fall should be controlled within 10%.

Reporters dialed the Guangzhou government service hotline 12345 to consult the price limit policy, a Guangzhou Housing and Construction Commission staff explained that Guangzhou is still implementing the price limit policy, only to optimize the price. Its not about relaxation. It depends on the situation of the enterprise. If you can sign it, its below the guiding price, he said. But the price is too high to sign it. It cant go up indefinitely.

Another anonymous staff member of Guangzhou Housing and Construction Commission responded to reporters that the system would automatically pop up a dialog box containing the price limit when commercial housing was online signed, and now the dialog box has been cancelled. But we cant say that regulation has relaxed, he said.

A person close to Guangzhou Municipal Housing and Construction Commission disclosed that the current price restriction policy in Guangzhou has indeed loosened, mainly by changing the previous one-size-fits-all price restriction mode. In specific operation, it is allowed to rationally adjust the price according to the price of the surrounding buildings, not higher than the price of the surrounding buildings.

Price Limitation Improvement of Multi-Building Double Contract to Single Contract

Zhang Mo (not his real name) bought a building in Guangzhou Liwan District Guangzhou New Town this year. In September, when he first went to the sales office to sign a contract, he signed a double contract with a total price of 3.9 million yuan, namely a purchase contract with a total price of 3.1 million yuan and a decoration contract with a total price of about 800,000 yuan.

Last week, when Zhang Mo went to the sales office to sign a formal contract, he was told that the double contract would no longer be used, but that he would sign a single contract based on the actual purchase price, with a total price of 3.9 million yuan. Developers said that the price before was too low, may not pass the Internet tag, said that the current price can pass, Zhang Mo told reporters.

It is understood that the building area of Zhang Mos house is 92 square meters, and the unit price is 33.7 million yuan per square meter based on the total price of 3.1 million yuan, while the unit price is 42.4 million yuan per square meter based on the total price of 3.9 million yuan. According to this calculation, the price of online signature has increased by 8700 yuan, but it is still expected to pass.

Coincidentally, a real estate agent told reporters that his agent is located near the Yangang subway station in Haizhu District, Guangzhou, some units from the previous double contract to single contract. She disclosed that when the double contract was adopted before, the decoration contract and the purchase contract were about 10,000 yuan per square meter and 43,000 yuan per square meter respectively, adding up to about 53,000 yuan per square meter.

Now its time to take some units out for activities. After all, listed companies are going to have to rush their performance at the end of the year, the intermediary said. She said that the price of the small apartment of the project is 45,000 yuan per square meter, which is higher than the price of the previous double contract purchase contract, but it can still be signed online. Our house has got a pre-sale certificate, and now the record price has been adjusted, she said.

(Guangzhou House Price Trend, Photo Source: Residents)

It has been reported that the price limit has been abolished in the peripheral areas.

In October of this year, the sale prices of houses in Zengcheng District, Nansha District and Huadu District of Guangzhou City must be recorded according to the real price, and the online signature price is the real price. As soon as the news came out, the voice of Canceling the Price Limit in Guangzhou spread rapidly. On October 20, Guangzhou Municipal Housing and Construction Commission responded quickly that it would continue to resolutely implement the current control measures and strictly carry out price guidance for newly-built commercial housing; but at the same time, the municipal and district housing and construction departments would optimize the pre-sale and online price guidance mechanism for newly-built commercial housing, and strictly prohibit the development of enterprises to report split prices.

Previously, in order to evade supervision, some developers adopted the way of double contract to evade price limits. Common double contracts include purchase contract and decoration contract, such as a building with a market price of 40,000 yuan but the net signature price of less than 20,000 yuan. Developers would ask buyers to sign a purchase contract of 20,000 yuan/square meter and a decoration contract of 20,000 yuan/square meter. Housing contracts can be registered online smoothly.

In fact, since March last year, Guangzhou has issued a series of restrictions on purchase and price. In March 2017, the Notice of the General Office of the Guangzhou Municipal Peoples Government on Further Strengthening the Regulation and Control of the Real Estate Market was issued, which is the most stringent in history, including strict restrictions on the purchase of housing permits for residents after two years. In August 2017, Guangzhou Municipal Housing and Construction Commission and other departments jointly issued the Notice on Strictly Implementing the Regulation and Deployment of Real Estate and Enhancing Market Management in an All-Round Way, which clearly requires that the sale price of new commercial housing should not exceed the record price, and that the record price should be guided by the government. Once the price exceeds the record price, no online signature or pre-sale license will be issued.

To maintain market stability

Experts pointed out that the moderate adjustment of price limit policy is aimed at maintaining market stability.

Guangzhous request for real price filing is aimed at cracking down on Double Contracts and standardizing market order, rather than abolishing the price limit. However, due to the previous low price limit standards, after the implementation of this policy, the price limit standards need to be improved. Zhang Dawei, chief analyst of Zhongyuan Real Estate, said.

Yan Yuejin, director of research at the think tank center of Yiju Research Institute, said, Objectively speaking, the projects record price will be determined based on factors such as cost price and real estate regulatory environment, which not only conforms to market rules, but also does not contradict existing regulatory ideas. Through the adjustment of the policy of online signature price limit, the transaction can be smoother. It is expected that there will still be a possibility of loosening next year, which will have a positive effect on the sales of Housing enterprises and local real estate market transactions.

Guojin Securities believes that in the future, the real estate regulation policy will be carried out in the combination of short-term administrative restriction withdrawal and long-term mechanism introduction. Previously, the real estate regulation and control mostly used administrative measures to intervene, which played a role in restraining the rise of housing prices and reducing risks in the short term; but in the long run, it is necessary to promote the real estate policy from administrative measures to comprehensive measures and gradually build a long-term mechanism of the real estate market.

Some experts also pointed out that housing bubbles need to be vigilant. The control of the real estate market is still relatively strict. If a large amount of money goes to real estate, it will not be good news for the transformation of the whole economy and the construction of domestic demand. Li Yujia, senior researcher of Shenzhen Real Estate Research Center, said. Yan Yuejin suggests that even if there is a relaxation, real estate developers should comply with the rules of sales, to avoid unreasonable price increases.

Source: Xu Meng-NN7485, Responsible Editor of China Securities Newspaper