Financial Crisis Is Everywhere &Nbsp; The Government Asks Developers To Eat To Promote Land Sales.

Real estate macro regulation, developers are really sad?

"Many real estate companies tell us that they will not buy land in the second half of the year because of tight funds."

"In fact, if developers do not buy land, it is not the neck of the developer, but the neck of the local government," said Pan Jun, chairman and chief executive officer of the year of flower.

Pan Jun frankly said that due to the current local government financial constraints, land revenue in the proportion of fiscal revenue is quite large, so now the developers of local developers have a lot of pressure to eat. "Last year, developers visited the government, hoping to invest in all places, but now the situation is the opposite. Now the local governments invite us to eat, say there are more than a dozen land, you choose whether there is a suitable."

According to the China Index Research Institute, in the third week of June this year, 125 major cities in the 20 cities were monitored, with an increase of 33% in the ring ratio, 9 million 200 thousand square meters in land area and 80% increase in the ring area.

52 land pactions, an increase of 49%, the land area of 2 million 420 thousand square meters, an increase of 75%.

The average paction price of the 20 major cities was 3757 yuan / square meter, up 91%.

However, in 20 major cities, only Hangzhou, Changsha, Chengdu and Suzhou had residential land pactions, and the land pactions in other first tier cities were dismal.

On the one hand is the impulse of local governments to sell land, while developers are under financial pressure.

Pan Jun estimates that in the third quarter of this year, some local governments will be forced to lower their expectations, and the price of land will go down.

Local government: land sales - repayment of debts

Pan Jun's calm to the central macro-control policy comes from the understanding of the local government's debt predicament.

"Recently, the people's Bank of China and the Banking Regulatory Commission (CBRC) are concerned about the local debt problem. The current disclosure is 7 trillion and 600 billion yuan, while the real estate loan is 7 trillion and 380 billion yuan, and the local debt is higher than that of the real estate industry.

There are several reasons for this. First, the volume of land pactions has declined.

Second, many local governments borrowed money to make demolition at the climax of last year, and their land cost is very high.

Third, the money borrowed by local governments, 90% will depend on land sales to repay bank loans and pay interest.

Pan Jun said, "if local financing platform problems are terrible, the financial industry will be very influential.

We see that a lot of local governments have stopped their land consolidation, which means that the source of their repayment has been cut off.

Because many land is completed by local governments on the cost basis last year, local governments still have expectations for land revenue.

Pan Jun hopes that the cost of taking place this year will be 40%-50% lower than that of last year's peak. He estimated that there would be a low price opportunity in the three quarter of this year.

At present, the local governments of the 234 tier cities have the desire to sell land. Pan Jun has revealed that the governments of Suzhou, Wuxi, Nanjing, Chengdu, Dali and other places have asked developers if they want to buy land.

In June 14th of this year, the total cost of the flower year was 318 million yuan. The acquisition of 100% stake in Dongguan Huaqian Li Real Estate Development Co., Ltd. acquired a land of 96 thousand and 900 square meters with a total area of 96 thousand and 900 square meters in the north shore village of Huang Jiang Town, which is owned by thousands of miles, and plans to develop high-end villas and high-rise houses.

In May 19th, in the year of May 19th, we successfully invested 117 million yuan in a land with an area of 15 thousand and 400 square meters and a total construction area of 64 thousand and 200 square meters.

In the early May, the 5 year guarantee senior $120 million worth of $14% was issued by the year of the year, which was questioned by the market.

Pan Jun explained that as at the end of May, the cash in hand was 4 billion yuan, the debt ratio was less than 50%, and the fund was in good condition.

However, since the money for issuing bonds in May has not been repatriated to the mainland, the attitude towards land in the second half of this year will be more cautious than in the first half.

If there is a very suitable land, it will be considered in line with its strategy of developing the urban complex and the large scale senior housing in the suburbs.

In addition, "the year of the year has also accepted some fund proposals to keep cash in hand, hoping that the monthly cash inflow is greater than the outflow."