Shenzhen Real Estate Market "High Fever Does Not Return" Housing And Construction Departments To Close Policy Loopholes

In order to further standardize the real estate trading market, Shenzhen once again refined the rules for purchasing houses.

On January 19, Shenzhen Municipal Bureau of housing and urban rural development issued a "letter of Shenzhen Municipal Bureau of housing and construction on clarifying some issues in the notice on further promoting the stable and healthy development of the real estate market in our city", which further clarified the problems of in transit transaction of the former "7.15 new deal", purchase conditions of high-level talents and housing registration of residents' families.

One of the most concerned is that the commercial housing purchased by residents' families can only be registered in the name of family members who have the purchase qualification; and in the "Notice of Shenzhen housing and Construction Bureau on further promoting the stable and healthy development of the real estate market in our city" (hereinafter referred to as the "notice") issued by Shenzhen Municipal Bureau of housing and urban rural development, the residents' families and couples can only register in the name of the family members who have the purchase qualification If only one person from both parties meets the conditions for purchasing a house, the purchased commercial housing can only be registered in the name of the party or both parties meeting the conditions for purchasing the house, and shall not be separately registered in the name of the party that does not meet the conditions for purchasing the house.

In the latest document, the rule that "can be registered in the names of both parties" was clearly pointed out in July last year that it would not be implemented. This also means that the act of "fake marriage" to obtain the house purchase qualification is "blocked", and this method will not work.

Shenzhen is one of the most active cities in housing transactions, and the private sector has always been bolder than other cities in the use of housing qualification and financial leverage. With the official strengthening the regulation of market behavior, the "hype" atmosphere in Shenzhen is gradually weakening, and the market is gradually entering a stable development stage, and the Shenzhen property market maintains a "high-level operation" state.

Shenzhen property market to maintain a "high level of operation" state. IC photo

Official patching

This letter from Shenzhen Bureau of housing and urban rural development can be regarded as another patch after the "July 15 new deal".

On July 29, 2020, the Shenzhen Bureau of housing and urban rural development pointed out in a letter that only one husband and wife of a resident family meets the conditions for purchasing a house, the commercial housing purchased can only be registered in the name of the party or both parties meeting the conditions for purchasing the house, and shall not be separately registered in the name of the party that does not meet the conditions for purchasing a house.

In September 2020, a reply from the real estate registration center on the latest implementation of the relevant provisions of the July 15 new deal in Shenzhen was sent out, which indicated that the remarried or remarried families would be calculated according to the number of existing family housing units, and the housing situation of the families before their divorce would not be considered.

At that time, some intermediaries and potential buyers thought that "fake marriage" would work again, but this "gap" was soon blocked.

On September 10, 2020, Shenzhen central sub branch of the people's Bank of China, Shenzhen banking and Insurance Regulatory Bureau, and Shenzhen Bureau of housing and urban rural development jointly issued a notice, proposing that Shenzhen housing and Construction Bureau should further improve the function of real estate information platform, and provide commercial banks with query convenience of marriage registration (including marriage and divorce) information through provincial data sharing mechanism.

The circular said that commercial banks should, through the real estate information platform, inquire about the marital status of the borrowers and the number of housing units owned in Shenzhen under the names of family members who purchase houses, as the basis for loan review and effectively implement the differentiated housing credit policy requirements. Shenzhen Bureau of housing and urban rural development further improved the function of real estate information integration, and provided convenience for commercial banks to inquire about the information of marriage registration (including marriage divorce) of house buyers through the provincial data sharing mechanism.

This is seen as an official way to "crack down on" fake marriage to obtain house purchase qualification, and in the letter on January 19, it announced that the chaos of "fake marriage" would be completely solved.

Li Yujia, chief researcher of Guangdong provincial housing policy research center, analyzed in an interview with the 21st century economic report that some foreign investors obtained the qualification of purchasing houses by means of fake marriage. There are many cases of this phenomenon in Shenzhen. Intermediary agencies evade the purchase restriction through "one-stop service". Now, this policy has blocked the original policy Policy, false marriage is not blocked.

In addition to clarifying the housing registration of residents, the Shenzhen Bureau of housing and urban rural development also further clarified the housing qualification of high-level talents in the letter.

It points out that the high-level talents recognized by the municipal human resources department can purchase the first set of commercial housing in Shenzhen with the certificate of high-level talent identification within the validity period of enjoying the talent preferential policy, without providing the social security or individual income tax certificate paid in Shenzhen. Families with high-level talents who purchase the second set of commercial housing shall be subject to the current purchase restriction policy of Shenzhen city.

High level operation of property market

Shenzhen Bureau of housing and urban rural development frequently adjusts the detailed rules. The realistic reason is that the "speculation" in the Shenzhen property market is quite popular. Even after the "7.15 New Deal", the first and second-hand real estate transactions in Shenzhen have not obviously stalled, and they are still operating at a high level.

According to the sales price changes of commercial housing in 70 large and medium-sized cities in December 2020 released by the National Bureau of Statistics recently, Shenzhen has the highest growth rate of 14.1% among the 70 large and medium-sized cities in the past year, far ahead of other major cities. According to the data of China's urban housing price platform, in December 2020, the average unit price of second-hand housing in Shenzhen has reached 87957 yuan per square meter, significantly ahead of Beijing, Shanghai and Guangzhou, 1.36 times of Beijing, 1.5 times of Shanghai, and 2.2 times of Guangzhou.

In terms of transaction volume, according to the data of DTL, the total amount of residential transactions in Shenzhen will be the first in nearly five years in 2020.

Among them, in the first 11 months, the total number of transactions of second-hand commercial residential buildings in Longgang reached 3.602 million square meters, accounting for 27% of the city, ranking first among all districts. Compared with the same period in 2019, Guangming, Longgang, Dapeng and Longhua, including primary and secondary transactions, increased by more than 50%, respectively, by 64.5%, 64.1%, 58% and 56.2%.

In terms of first-hand housing, after the "7.15 New Deal", Shenzhen still frequently "shakes thousands of people" due to the existence of inverted prices. Many "house buyers" participate in the game of "fighting new".

However, the official management of the "strike new" behavior has also quietly arrived. At the beginning of 2021, Longguang Qianhai Tianjing and Tianjian Yuegui government, two "online Red disks" in Qianhai, Shenzhen, began to pre-sale. Both of them need to register their purchase intention on the I Shenzhen app before submitting materials on the corresponding public number line. At present, I Shenzhen app "purchase sincerity registration" has been online.

The system also gives special tips: if the buyer violates the purchase policy, he may face five years' prohibition of using the purchase intention registration system, the deposit will be confiscated, and the credit file will be recorded.

In addition, the qualification examination of house purchasing qualification and income flow of house buyers is becoming more and more stringent. In the warm prompt of intention registration of Tianjian Yuegui government, the developer clearly asked the buyer to provide "bank flow seal documents in recent half a year, which should reflect the down payment flow, print salary flow or reflect stable income, no less than 2 times of the monthly payment amount".

A salesman of a small loan company told the 21st century economic report that the bank is very strict with the flow (AUDIT) and that the income and the current flow can not match each other, "it will be very serious".

While standardizing the demand side, Shenzhen should also make efforts on the supply side. Song Ding, deputy director of China's urban economic expert committee, previously suggested in an interview with the 21st century economic report that the government could make up for the new situation in the property market, but the suppression on the demand side is a way to make up the soup and stop the boiling. Shenzhen's fundamental goal is to increase supply from the supply side.

According to Shenzhen housing and Construction Bureau released "Shenzhen 2020 real estate management data inventory" on January 11, the data showed that in 2020, Shenzhen further strengthened the construction of commercial housing, completed a total of 12.36 million square meters of commercial housing construction area, the highest in previous years, with a year-on-year increase of 160%; the supply of commercial housing land was 227.53 hectares, completing 182% of the 2020 implementation plan 。

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