Shanghai'S Housing Development Has Entered A New Stage

? ? ? ? On August 13, Shanghai announced the "14th five year plan" for housing development in Shanghai (hereinafter referred to as the "plan"). According to the plan, Shanghai will adhere to the simultaneous development of rent and purchase, implement the spatial pattern requirements of "central radiation, two wings flying together, north-south transformation, and new city development", and "focus" on the development of rental housing and adhere to the simultaneous development of rent and purchase. Optimize the multi-level rental housing supply structure from "one bed", "one room" to "one suite". During the "14th five year plan" period, more than 420000 rental housing units (rooms and dormitory beds) were formed, accounting for 40% of the total housing supply. Among them, there are 220000 rental rooms (rooms) and 200000 dormitory beds. We will continue to standardize the agency rental housing of 300000 units (rooms).

From the perspective of industrial impact, a leading real estate enterprise said that the rental market is a certain track with policy support, market demand and stable cash flow. The core elements of competition are capital cost, lean management (cost and service), strategic vision, exit channel, etc.

Optimizing housing structure

During the period of the 14th five year plan, an area of 4000 hectares of residential land was newly supplied, and 40 million square meters of commercial housing and about 400000 sets of commercial housing were supplied.

"Planning" proposed to "coordinate" the development of affordable housing, improve the housing security system“ During the 14th Five Year Plan period, about 230000 new affordable housing units were provided“ In order to improve the display of urban organic renewal work, we should develop the existing housing. By the end of 2022, we will fully complete the transformation of the buildings below the second level in the central urban area; During the planning period, efforts should be made to complete the transformation of scattered houses below grade II in the central urban area ahead of schedule.

According to the above-mentioned people of real estate enterprises, although there are natural advantages for real estate enterprises to cut into the construction and operation of rental housing, the current mainstream real estate enterprises rely on the business model of increasing leverage with short-term funds. It doesn't match the long-term business model that can control cost and improve income through fine management, and finally gain recognition in the capital market. This requires the support of the capital market, so there are not many enterprises that can choose this track. The past history also proves that many real estate development enterprises enter the rental housing market and exit after a few years.

In terms of speeding up the construction of the housing rental system, the plan proposes to build and raise more than 700000 rental housing units (rooms) in total, including 400000 newly-built and converted rental housing units, through centralized new construction, commercial housing construction, transformation of stock land, supporting construction of various parks, and transformation of commercial office projects according to regulations. We will introduce supporting policies such as the guidelines for planning and construction of rental housing, and strengthen the construction orientation of small and medium-sized apartments and dormitory beds. 150 pieces of land for centralized rental housing projects are transferred, with a construction area of about 10 million square meters, ranking the first among the newly built rental housing in major cities, laying a solid foundation for the construction of a housing rental system with multi subject participation, multi variety supply and standardized management.

How much impact will this have on the industry? Industry insiders believe that at present, most of the real estate enterprises are still used to the investment return mode of the leasing industry, and need to further seek funds and improve the ability of fine management.

The above-mentioned people from real estate enterprises pointed out that the capital end of the future development and operation market of rental housing mainly comes from life insurance funds and private equity funds which pursue long-term stable income; the development end is mainly undertaken by mature brand real estate enterprises or private fund management companies; and the operation end is mainly composed of mature leasing service enterprises.

Two changes

Yan Yuejin, research director of the think tank center of E-House Research Institute, analyzes that compared with the 13th five year plan, there are two obvious changes in Shanghai's housing policy during the "14th five year plan": clearly put forward a multi-level rental housing supply system, that is, "one bed, one room, one suite". This formulation is vivid and clearly outlines the multi-level rental housing supply system in Shanghai. From the data point of view, it mentioned the supply content of 420000 rental housing units, which also showed that the total amount was guaranteed. Therefore, we should pay attention to the total supply and structure of rental housing in Shanghai in the past five years. Of course, on this basis, paying attention to the distribution of products and increasing the publicity of rental housing products in Shanghai are also the follow-up contents worthy of attention. The second change is to accelerate the transformation of old areas. This time, it gives the data index requirements for the renewal and transformation of old urban areas and old houses, which makes the investment of real estate enterprises in such industries more clear. Similar to the content of old district reconstruction, is the future need to focus on. In particular, we need to do more research on "interest appeal". There are many details of this kind of work, which need to be refined by real estate enterprises or investors. If the similar work is done in place, it can be better promoted in other cities in the country.

In addition, the plan points out that the digital transformation of housing field should be promoted in residential areas, community management and rental housing.

Obviously, the housing security beneficiary groups will expand in an orderly manner. By the end of December 2020, 134000 households will benefit from low rent housing; We will increase efforts to raise funds for public rental housing construction, allocate supply, and recycle housing resources. We will supply 150000 housing units in total and benefit 720000 households. It is worth noting that Shanghai will seriously implement the "one city, one policy" work plan, strictly implement relevant regulatory policies, implement real estate linkage mechanism, increase the supply ratio of small and medium-sized ordinary commercial housing, strengthen market monitoring and supervision, and accelerate the construction of a long-term mechanism to promote the stable and healthy development of the real estate market.

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