Hangzhou Real Estate Market Policy Changes Spark Surge in Housing Prices and Stock Prices

Securities Times reporter Li Xiaoping and Nie Yinghao

On May 9, Hangzhou issued a major real estate market policy and completely suspended purchase restrictions. This is the third time in the past six months that Hangzhou has changed and changed its real estate market policies.

“Influenced by the new policies in the Hangzhou property market, it is expected that the number of listings in the second-hand housing market will increase rapidly. Today, a buyer raised the price of the house that had just been listing in the morning from more than 60,000 yuan per square meter to more than 80,000 yuan per square meter.” May 9 Afternoon, a real estate agency in Hangzhou told a reporter from Securities Times e Company.

On the same day, a real estate agent in Gongshu District, Hangzhou told reporters that after Hangzhou’s real estate market policy was released last October, he only had one month of security to pay social security to buy a house in the main urban area of ​​the country. Hangzhou sales.

According to the secondary market, encouraged by the news of a complete relaxation of purchase restrictions, the capital market welcomed the “rise”. Nandu property closed at the daily limit.

Three shots in half a year

On May 9, the Office of the Hangzhou Central Agency for the Stable and Healthy Development of the Real Estate Market issued the “Notice on Optimizing and Changing Real Estate Market Management Policies” (referred to as the “Notice”) to continue to meet the strict and improved housing needs and promote the sustainable and healthy development of Hangzhou’s real estate market.

According to the “Notice”, housing purchase restrictions have been completely suspended, and housing purchase certificates will no longer be reviewed within Hangzhou. Strengthen housing credit support. , the mortgage loan for the newly purchased home can be based on the first home identified. Make the most of the points settlement policy, and non-local residents who have obtained housing with legal property rights in Hangzhou can apply for settlement.

The senior vice president of the East China Division of the China Index Research Institute told a reporter from Securities Times e Company that this new “Hangzhou Seven Articles” policy is another major new policy after the new policy ” 3.14”. The reason behind the overall lifting of purchase restrictions is largely due to the relatively slow performance of the new housing market.

According to China Index survey data, between January and April this year, the volume of new home transactions in Hangzhou was 1.883 million square meters, and the popularity of new homes continues to decline. According to data from CRIC, in April this year, Hangzhou’s commercial housing transactions decreased significantly. .

The Hangzhou real estate market relaxed the area of ​​purchase restrictions last October, that is, the “Notice on Optimizing and Changing Real Estate Market Control Measures” was issued on October 16, 2023. The scope of housing purchase restrictions has been reduced in 9 original districts including Shangcheng District to Shangcheng District and Gongshu District, West Lake District, Binjiang District and 4 other districts.

Subsequently, Hangzhou further relaxed the purchase restrictions on second-hand houses in March this year. buying second-hand houses in Shangcheng District, Gongshu District, Xihu District, The conditions for buying second-hand housing in Binjiang District and the restrictions on the number of units purchased.

The last round of comprehensive lifting of housing purchase restrictions in Hangzhou dates back to August 2014, but the policy only lasted for about two years, and purchase restrictions were resumed in September 2016. Since then, Hangzhou’s real estate market has been implementing purchase restrictions.

The New Deal is sparking debate, and house prices are expected to rise

After Hangzhou’s new property market policies were released, it attracted a lot of attention and discussion from the outside world. Judging from the reporter’s understanding of the situation with real estate companies, intermediaries, and businessmen, Hangzhou’s new real estate market policies are expected to have a greater impact on the second-hand housing market.

“Today, a buyer raised the price of the house he just listed this morning from more than 60,000 yuan per square meter to more than 80,000 yuan per square meter.” On the evening of May 9, a real estate agency in Hangzhou told a reporter from Securities Times·e Company that this type of buyer who suddenly raises the listing price is not doing it for a real sale, but to apply for a loan for buy a new house, which is considered a first home.

Because according to the New Deal of the Hangzhou Property Market, if a home buyer has only one house in the area, county (city) where the house is purchased, and it is listed for sale on High- Hangzhou Second Hand House Inspection Service platform, individuals who have newly purchased a house in the same area, county (town) Housing loans can be confirmed based on the first home.

On the evening of the same day, a real estate agency on Xueyuan Road in Hangzhou received a home buyer who came for a consultation. This prospective home buyer who lives in a non-prime urban area in Hangzhou told reporters that the New Deal means that home buying is no longer restricted. Therefore, I plan to buy a new school district house in the cultural and educational area of ​​the capital city for the learning needs of the children. At the same time, the prospective home buyer believes that the value of the school district house will be fully reflected after the New Deal.

“Hangzhou’s announcement of new real estate market policies supports the gradual restoration of market stability and the gradual movement of the market.” A relevant person in charge of a listed real estate company in Hangzhou told reporters that Hangzhou’s real estate market has not only fully relaxed purchase restrictions, but also home purchases tied to settlement. Hangzhou has a rich cultural heritage, good business support, and a strong innovation drive, which has a special attraction for foreigners to buy houses.

“Widely liberalizing home purchase restrictions and overriding other supportive policies will help to spread effective demand.” On the one hand, you can settle after buying a house, including more new demand from within the province or from other places; on the other hand, the demand for local development could be accelerated, on the other hand, the sale of old houses and the purchase of new houses will be greatly shifted – quality sectors will become more difficult,” said Gaoyuansheng.

The High Court students also said that optimizing the sale of notarized lots and canceling notarized lots for projects with fewer registered buyers than the number of houses allowed to be sold has given more flexibility to real estate companies and improved the sales efficiency for home buyers, it will help to reduce the sales efficiency the time cost of home buyers and improve the convenience of home buying. Catalyzed by favorable policies, Hangzhou’s new home market will see a slow and moderate recovery However, limited by the size and structure of the supply, it is difficult to recover significantly in trade volume.

According to Hangzhou’s new real estate market policies, four districts, including Gongshu District, are no longer bound by previous purchase restrictions. On May 9, the person in charge of real estate sales in Gongshu District, Hangzhou told reporters that in the past six months, Hangzhou has released the property market purchase restriction policy twice exemptions, etc. This time it is expected that the New Deal will have little effect on sales in the new home market of Hangzhou.

Capital market welcomes “rising” news.

Currently, listed real estate companies and property companies in Hangzhou include Binjiang Group, Guangyu Group, and Nandu Property, as well as Binjiang Services, Greentown China, Greentown Services, and Greentown Management Holdings listed there the Hong Kong.

Buoyed by the news that Hangzhou has fully relaxed purchase restrictions, stocks of real estate companies listed in Hangzhou rose one after the other after the market opened on May 9. Among them, Guangyu Group and Nandu Property both closed at the daily limit; up 4.9%; Binjiang Services closed up 3.45%.

The annual report shows that in 2023, Guangyu Group’s real estate revenue will be 6.338 billion yuan, accounting for 69% of revenue. In terms of income composition, income from Zhejiang Province was 8.395 billion yuan, accounting for 90% of the income. In 2023, Nandu Property achieved an operating income of 1.851 billion yuan, more or less the same; achieved a net profit according to shareholders of listed companies of 186 million yuan, a year-on-year increase of 28%. Among them, income from Hangzhou was 841 million yuan, accounting for 45% of the income.

Binjiang Group, which has won the sales competition in the Hangzhou market for six consecutive years, achieved sales of 153.47 billion yuan in 2023, almost the same as the previous year, ranked 11 in CRIC business sales rating. Last year, the sales of Binjiang Group in Hangzhou was 60.682 billion yuan, the first place in the industry. It is reported that Binjiang Group will continue to focus on Hangzhou in 2024 and enter the Zhejiang market. Last year, the company added 33 new land reserve projects, including 27 in Hangzhou.

(Editor: Wen Jing)