Since the beginning of this year, with the changes in the supply and demand relationship in the real estate market, many cities including Zibo, Jinan, Qingdao in Shandong, Nantong and Xuzhou in Jiangsu, Ningbo and Lishui in Zhejiang have launched real estate “trade-in” activities. What are the conditions required for house exchange? How much role can encouraging “old-for-new” house purchases play in releasing demand for improved house purchases?
Many places launch real estate “trade-in” programs
Housing “trade-in” means that real estate developers or government agencies encourage and help existing residents to sell old houses and trade them in for new ones through acquisition, replacement, subsidies, etc. The specific operations vary from city to city and from property to property.
Taking the main urban area of Nantong, Jiangsu, as an example, residents can sign a letter of intent to subscribe with a real estate company and lock in a new house within a certain period. After the brokerage company sells the old house, the money will be used as a down payment for the new house; if the old house is sold within the period, If the house fails to be sold, residents can cancel the subscription letter of intent and do not need to bear liability for breach of contract.
Wang Kailiang, director of the Nantong Municipal Housing and Urban-Rural Development Bureau, said that if the date of selling the old house and the date of purchasing the new house are within 365 days, additional subsidies will be provided.
In addition to the tripartite cooperation model like Nantong, which consists of home buyers, developers and brokerage companies, the Zhejiang Ningbo Real Estate Association recently launched a “replacement for new purchase” service, allowing home buyers and real estate companies to directly sign an agreement to sell second-hand housing , exchange for new commercial housing.
Jiangsu Taicang requires that the eligible general commercial housing in one’s name be sold to a designated state-owned company in accordance with corresponding rules, and the new house designated by the state-owned company be purchased. At the same time, it is stipulated that one existing commercial house can only be replaced by one new commercial house, and the total replacement price of the existing commercial house shall not be higher than 60% of the total price of the new house purchased.
According to incomplete statistics, so far, more than ten cities including Xuzhou, Zibo, Nanjing, and Jinan have successively launched “old-for-new” activities.
So, what is the effect? The reporter visited many places and found that the effect at the implementation level varies greatly.
A staff member of a real estate sales office in Jinan, Shandong Province said that the “old-for-new” policy has been effective since its introduction, and there have been many transactions. “Choose a floor first, and pay a deposit of 30,000 yuan after the price is negotiated. The employer will then communicate the price of your house. After the negotiation is completed, we will pay the price of the old house. The buyer can just transfer the house payment to us. , the remaining price difference can be paid as a lump sum or as a loan.”
Staff of real estate agencies in some cities told reporters that there were many people consulting a few days before the policy was introduced, and they were basically customers who needed improved housing. However, the effect of the policy remains to be seen.
Experts: Promote the release of demand for improved housing
In this regard, Yang Hongxu, deputy director of Shanghai Yiju Real Estate Research Institute, said frankly that when second-hand housing agents recommend the houses for these replacements, buyers are still not very enthusiastic. The market environment still determines many aspects of market transactions.
Ding Jiangang, dean of the Zhejiang News Media Real Estate Research Institute, believes that there is an important difference between “old-for-new” house purchases and ordinary second-hand house sales. “Old-for-new” has a “backstop mechanism” for the sale of old houses, which increases the certainty of house exchange and is important for improvement. The release of consumer demand for housing has a positive effect.
“Compared with ordinary second-hand house transactions, it can be completed quickly, because if it is listed on the ordinary second-hand house market, no one may be interested in it for several months. Now that the ‘house ticket’ has been released and the funds have been obtained, it is a great thing for these people Good thing.” Ding Jiangang said.
The reporter combed through and found that most of the cities that currently encourage “old-for-new” home purchases are second- and third-tier cities, and there are no first-tier cities. So, is it possible for this approach to be implemented in more cities?
Zhang Huahua, an expert member of the Real Estate Professional Committee of the China Urban Economics Society, believes that the current consumer demand for housing has shifted from “whether it is available” to “whether it is good or not.”
In the short term, the “old for new” policy will help smooth the chain of first- and second-hand housing and increase the activity of the property market; however, “old for new” in housing is much more difficult to operate than household appliances, furniture, etc., and it is currently unrealistic to promote it on a large scale. In the future, more cities may participate to further release the demand for improved housing.
(According to the Voice of China WeChat official account)
2023-11-25 23:27:30
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