Within half a month, Chengdu has successively taken measures to control the property market, providing buyers with a "safeguard"

In half a month, Chengdu has taken steps to regulate the property market twice. On December 8, the General Office of the Chengdu Municipal People's Government issued the "Chengdu Measures for the Supervision of Advance Sales of Commercial Housing" (hereinafter referred to as the "Measures"), which strictly upgraded the regulatory measures. According to the provisions of the "Measures", Chengdu's Advance Sales of Commercial Housing All will be deposited directly into the supervision account, and development companies are not allowed to collect house purchase payments in any other form in violation of regulations. The "Measures" will be effective from January 7, 2021, and will be valid for 3 years.

Regarding the supervision of pre-sale funds for commercial housing. , Chengdu has already issued relevant policies in 2009, and revised them in 2015. The new version of the "Measures" released this time has strong supervision, and the measures are also very detailed and in place, which can effectively protect the rights and interests of home buyers after buying a house.

Half a month ago, the relevant departments of the Chengdu government frequently implemented control measures on the real estate market, starting from both the supply and demand aspects, and successively issued "double land limit and house price limit" and "revised lottery rules for commercial housing" " and other combination punches.

Why has Chengdu tightened the control of the property market recently? Based on feedback from industry insiders, Chengdu's housing prices have shown signs of rising recently, and consumers are more enthusiastic about buying houses; land transaction prices have risen, and real estate companies are also enthusiastic about buying land. . Behind the good fundamentals of the property market, is the market foundation solid?

In September this year, a piece of news broke that Chengdu financial institutions were prohibited from providing new financing and loans to Hutchison Whampoa Real Estate (Chengdu) Co., Ltd. It caused a sensation, and also revealed the tip of the iceberg of how real estate companies had previously made huge profits by hoarding land and holding onto properties in Chengdu. Hutchison Whampoa transferred a piece of land it owned in 2014 to the Yuzhou Group, directly A profit of 3.8 billion.

After the domestic epidemic stabilized this year, Chengdu also joined the recovery of the property market, and many property buyers began to line up to see the model houses in the sales department. There is even a lottery for tens of thousands of people.

Chengdu has divided the lottery winning rates into categories such as demolition, hard-to-find, and ordinary. Among the general lottery winning rates, the lowest is only 0.62. It is a first-hand and second-hand listing. For example, the average price of Greenland Xinli City in Guanghua, Qingyang District, is 17,400 yuan per square meter. The 54 properties have attracted more than 3,000 people, and the general winning rate is only 0.62. >

Hengda Tianfu Peninsula in Tianfu New District has 360 suites with an average price of 12,500 yuan/square meter. On the first day of online registration, there were more than 3,000 groups of customers. In the end, the number of people participating in the lottery reached 11,129, with an average winning rate of 3.23.

Tianxi, the first project in the East Second Ring Road, has an average price of 21,000 yuan per square meter and has 321 suites, attracting more than 1,000 groups of customers to participate in the lottery.

After the epidemic, there is pent-up demand. Although there are some real estate projects in Chengdu that have canceled their lotteries due to insufficient number of applicants, the transaction volume of the real estate market is still upward due to the existence of second-hand and upside-down real estate projects.

Under such market conditions, the market is still in an upward trend. Chaos also occurs frequently. "Charging tea fees", "not filing the entire payment", "developer's independent lottery fraud", etc. will also appear in some projects with lax supervision. In fact, an unfair market environment is the greatest harm to consumer interests.

Xie Mengxian, an analyst at Tongce Research Institute, believes that in 2015, the Chengdu government also issued relevant policies on the supervision of pre-sale funds, requiring real estate companies to have supervised construction funds of 1.1 times the total amount. , and before the "Project Completion Acceptance Record Form" is obtained, it can only be used for civil engineering expenses such as the purchase of building materials and equipment necessary for project construction, equipment installation engineering expenses and other engineering construction expenses, and may not be used for other purposes.

The newly launched supervision measures for advance receipts of commercial housing will implement a special bank account supervision system for the supervision of advance sales, and the supervision limit of advance sales will be linked to the credit rating of the development enterprise. For large real estate companies with good credit, the supervision of advance collections is more relaxed, and the use of advance sales at various progress nodes of project construction is also more flexible. For home buyers, advance payment supervision will minimize the possibility of unfinished properties, reduce the risks of purchasing off-plan properties, and provide greater protection.

According to official information released by Chengdu Housing and Urban-Rural Development, in order to ensure the construction of pre-sale commercial housing projects and safeguard the legitimate rights and interests of home buyers, relevant departments in Chengdu will supervise the entire pre-sale process. The pre-sale payment refers to the entire purchase price paid by the off-taker according to the commercial housing pre-sale contract when the real estate development enterprise pre-sells the house that has obtained the commercial housing pre-sale permit and has not yet completed the project and has been completed and accepted. "All pre-sale funds will be transferred into a special account, and withdrawals of pre-sale funds within the regulatory limit will be subject to node balance management." This article has the most direct impact on the Chengdu real estate industry.

To carry out full-process supervision of pre-sale funds, to put it simply, it is for properties sold off-plan, in order to prevent developers from misappropriating pre-sale funds at will, ensure the construction of commercial housing projects to prevent "unfinished work", and protect home buyers. rights, administrative departments and financial institutions supervise the pre-sale housing payments collected by developers.

Industry insiders pointed out that real estate companies can still use the supervised funds, which is equivalent to placing a tight curse on the company. In the policy issued in 2015, the Housing and Urban-Rural Development Department is only responsible for formulating regulatory rules and only provides "guidance and supervision" for the supervision of pre-sales of commercial housing; this time the "Measures" clearly stipulates that the regulatory agreement must be signed by the developer, the Housing and Urban-Rural Development Bureau Signed with a three-party agreement with the bank.

With the strong intervention of the housing and construction department, the bank has basically become a "tool person" for custody of funds. It must be authorized by the housing and construction department before it can allocate regulatory funds to developers. This operation can effectively prevent developers from misappropriating pre-sale funds at will and reduce the risk of developers having unfinished projects due to a lack of funds.

Regarding housing prices, the "Measures" stipulate that the total pre-sale listing price of commercial housing shall be used as the benchmark. When the project reaches plus or minus zero, the supervision limit shall not be less than 25, and in other stages, the supervision limit shall not be less than 15. The regulation based on the total pre-sale listing price of commercial housing can prevent the listing price of real estate from being inflated. According to reports, some commercial projects currently on the market in Chengdu actually sell for 10,000 yuan/square meter, but developers have registered and listed them with the housing and construction department for 50,000 yuan/square meter or even higher.

The "Measures" stipulates the supervision period for pre-sale payments, which begins with the pre-sale of the property and ends with centralized delivery, covering the entire process from purchase to delivery. Since pre-sale payment supervision cannot be ended until centralized handover, this forces developers to improve the quality and details of projects including landscaping, public areas, decoration, etc. If the products produced are "not right" and receive widespread complaints from owners, it will not be that simple for developers to get the "final payment".

According to analysis by senior industry insiders in Chengdu, the "Measures" stipulates that administrative departments participate in the specific implementation of supervision to better ensure that developers use dedicated funds and reduce the risk of unfinished properties; the supervision period is extended until the centralized delivery of properties , which is equivalent to the developer paying a final payment, forcing the developer to control the quality of the project. This is very important for real estate companies that have acquired high-priced land in the next three years. Once the construction is shoddy, they may not be able to get the final payment. Risks; the supervision limit is linked to the developer's credit rating, which will reduce market chaos and help establish a fairer market trading environment; for foreign developers to set up branches in Chengdu, the branch's construction funds can be effectively used for local projects to prevent the group headquarters from deducting or misappropriating construction funds for the Chengdu project. Some situations where "branch offices have no money and have to cut corners" will be greatly improved, which will ultimately benefit Chengdu home buyers and reduce their worries.

More importantly, Chengdu has introduced a "final payment" system in the supervision of pre-sale funds, which has a great impact on the cash flow of real estate companies. It is like forcing real estate developers to set "conditions" The company speeds up the development pace, strengthens the internal operation system, and improves high-quality project management. It also means that the possibility of real estate companies covering up the market will be greatly reduced.

A person from a real estate company who has been involved in Chengdu for many years said that after the three red lines, industry deleveraging will be a trend, forcing developers to work hard on product quality in order to increase the yield of a single project.

Judging from the recent Chengdu land market, there is an imbalance between supply and demand in the market.

Data from the China Index Academy shows that in November 2020, the transaction area of ??commercial residential buildings in Chengdu increased year-on-year, with 1.998 million square meters of transactions, an increase of 59.1% month-on-month and 7.6% year-on-year. Chengdu's central urban area is slightly undersupplied. The supply area in the central urban area is 973,000 square meters, a decrease of 3.6% month-on-month and a year-on-year decrease of 60.3%. The inventory area of ??commercial residential buildings in the central urban area was 15.911 million square meters, a decrease of 1.9% month-on-month and a year-on-year decrease of 16.3%. The clearing cycle is 10.2 months, 5.5 months shorter than the same period last year. Looking at the greater Chengdu area, the depuration cycle is also 10.5 months, 3.6 months narrower than the same period last year.

However, as the supply of land in Chengdu began to rise, transaction volume began to decline. In November, Chengdu launched 33 residential land parcels, totaling approximately 1.398 million square meters, a year-on-year increase of 2.8% and a month-on-month increase of 83.8%; 20 residential land parcels were transacted, totaling approximately 892,000 square meters, a year-on-year decrease of 32.7% and a month-on-month increase of 66.0%. At this time, land prices are rising month-on-month.

The reason is, “Some land in Chengdu has been covered for a long time and has been rotten; the newly acquired land is horribly expensive.” A real estate agent believes that, “As a central city in southwest China, Chengdu has long been It is a hotly contested area for all real estate companies and strategists. It is impossible to make money from the high-priced land that is being auctioned, especially in the main city. Most developers gave up in the end. ”

In the past, real estate companies have given up. By hoarding large amounts of land and reducing holding costs, I am afraid that as the development model changes, the land in hand will turn into risks. Narada Big Data Research Institute monitors 65 large-scale real estate companies, and the real estate company with the largest land hoard has a total land reserve of more than 240 million square meters. Industry insiders believe that Chengdu’s new policies are no less critical to the development model of real estate companies than those in Hangzhou.

Like the Hangzhou market, the prices of land auctions in the Chengdu market have skyrocketed in the past two years, and the profits of real estate companies have also been compressed. However, many real estate companies acquire land in Chengdu just like they do in Hangzhou. "As long as they enter Chengdu , the whole of Sichuan knows that I have entered Chengdu, Sichuan and the west, how much advertising expenses have been saved," said a person related to a foreign real estate company in Chengdu.

This market in Chengdu is not only targeted by foreign real estate companies, but local state-owned assets are also actively participating in the local auction market. On December 1, Chengdu launched 4 purely residential land sales, all located in mature areas of the main city, with a total land transfer area of ??113 acres. Among them, Jinjiang District *** launched 2 land parcels, with the starting floor price of both being 16,800 yuan/square meter. The most intense bidding was the land parcel No. 2 in Jinjiang District, which was eventually won by Jinjiang Tongjian United Huafa, with a bidding price of "19,300 yuan." Yuan/square meter for free transfer of 23 overall housing projects." Qixinbao data shows that Jinjiang Construction is one of the 100 holding companies of the State-owned Assets Supervision and Administration Bureau of Jinjiang District, Chengdu.

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