You may not buy a house to live in, or invest in real estate, but you must know the changing process of China’s housing prices. It accompanies the entire process of reform and opening up, and is also the history of changes in the wealth of the Chinese people.
When it comes to housing prices, we must first start with welfare housing allocation, which is a unique form of housing allocation in the planned economy era. It started in 1963 and ended in 1999, which lasted more than 30 years. At that time, the standard for housing allocation was mainly based on non-economic factors such as length of service, factory age, and family structure. How many people earned a lot of money for welfare, how many people had to give gifts to gain connections, and how many people finally passed the housing allocation. I got the house by drawing lots. At that time, the house was just a place where the family lived and had no economic attributes.
The earliest housing price data that appeared was in 1981, when commercial housing in Ruian, Wenzhou, Zhejiang was selling hot at 68.85 yuan/square meter, or 2,600 yuan per unit. This price seems relatively close to the people, but it takes a month to buy one square meter, and this is still in a small county.
In the following years, no housing price data was recorded. By July 1988, China's first land auction, mortgage loan, and truly complete commercial housing community, Dongxiao Garden, was completed in Shenzhen, with a selling price of 1,600 yuan/square meter.
The concept of housing prices can be seen from official statistics. National housing price statistics were only available in 1987. The sales area of ??commercial housing that year was 26.97 million square meters, which was too small compared to the huge total number of people and could only meet the housing needs of hundreds of thousands of people. What was the national average house price that year? 408 yuan/square meter. It may not seem high, but compared to the income of residents at that time, it was also unbearable.
On February 15, 1989, Beijing publicly sold 350 units of commercial housing built in prime locations for the first time, with a maximum price of 2,000 yuan per square meter, but only 250 units were booked. No way, it's still too expensive.
In the early 1990s, the large-scale development of Hainan promoted the prosperity of the real estate market. At that time, Hainan became a paradise for gold prospectors. Many people went to gold panning, and many companies also sent people to set up bases in Hainan. At that time, housing prices in downtown Shanghai rose to 6,000 yuan/square meter. However, with the first real estate regulation in 1993, the real estate bubble burst in Hainan, Beihai and other places. The effect of the bubble burst spread across the country. In 1994, housing prices in central Shanghai dropped to 3,000 yuan/square meter, and the market was in depression.
Until 1998, it was a watershed in the short real estate history of New China. In 1998, the State Council issued the "Notice on Further Deepening the Reform of the Urban Housing System and Accelerating Housing Construction", requiring that welfare housing allocation be stopped from July 30 of that year and comprehensive commercialization of housing be implemented. In 1999, the State Council issued the "Implementation Plan for Further Deepening the Reform of the Housing System by the Central Government and State Agencies in Beijing", which stipulated that the central authorities and state agencies in Beijing should "stop the physical distribution of housing and gradually implement the monetization of housing distribution; establish and improve the economic and affordable housing system" A multi-level urban housing supply system with a focus on housing.” Subsequently, attempts to allocate corporate welfare housing were also halted.
That is, in 1998, the unit price of house prices jumped to 2,000 yuan. I remember that in 1998, the price of second-hand houses near Qinghe, Haidian District, Beijing was 2,100 yuan/square meter. At that time, there were very few commercial houses and the loan conditions were very harsh. Generally, you can only buy a house if your family's house is demolished.
In 1999, Haidian Shuiqingmu Huayuan Community was still under construction, and the opening pre-sale price started at 4,900 yuan. Looking back now, after the real estate marketization, housing prices should rise sharply. But in fact, it did not. From 1998 to 2000, house prices remained stable or even fell slightly. I think many people will regret why they did not follow the policy closely in those years. Of course, the three-year period of stagnant housing prices should also be related to the Southeast Asian financial crisis at that time.
From 2001 to 2003, housing prices still gave many people opportunities and rose slightly. But at that time, there were sounds of a housing price bubble in the market.
Since 2004, housing prices have begun to run wild, no longer giving opportunities to those who hope to fall. The unit price of the national average house price has jumped all the way past the 3,000, 4,000, 5,000, and 6,000 yuan mark, soaring 18.7% year-on-year in 2004.
The first regulation began in 2005, and the new and old "eight national regulations" for regulating housing prices were introduced in March and May respectively; in September, the China Banking Regulatory Commission's Document No. 212 tightened regulations on real estate trusts. Although many projects took the initiative to sell off their inventory at reduced prices, housing prices generally continued to rise.
In 2006, the 70/90 policy was promulgated, and the "National Six Articles" required the development of low- to medium-priced, small and medium-sized general commercial housing, affordable housing and low-rent housing. On the same day, the "National Article 15" was promulgated, stipulating that housing under 90 square meters must account for more than 70% of the total project area, also known as the "70/90 policy." However, housing prices continue to rise, with a relatively stable increase, and there are more small and medium-sized houses.
In 2007, during the bull market of A-shares, they rose 16.9% year-on-year. In September 2007, the "Notice on Strengthening Commercial Real Estate Credit Management" was officially issued. This was also the "9?27" that was frequently mentioned later. New Deal for Home Loans.” This year, property market prices skyrocketed and landowners appeared frequently.
In 2008, China’s property market reached a major turning point in 10 years, with both volume and price falling. Therefore, macroeconomic control shifted in the second half of the year, and the management launched a large-scale policy to stimulate consumption in the property market, while other financial policies were loosened across the board. The government has begun to relax second home loans, relax loans for individuals to purchase second ordinary self-owned homes, and significantly reduce or reduce the business tax on housing transfers. On December 21, the General Office of the State Council issued the “National 13 Articles” to support real estate development companies in actively responding to market changes.
Under the large-scale economic stimulus policy in 2009, house prices rose by 22.4% year-on-year, reaching a record high, and the property market recovered. On October 24, the "Improvement of Policies and Measures to Promote the Healthy Development of the Real Estate Market" was promulgated, and the time limit for tax collection and exemption of personal housing transfers was restored from 2 years to 5 years. We are on the sidelines in the short term, as the transaction volume of second-hand houses has declined, and the market will recover after the Spring Festival in 2010.
In 2010, the state stepped up regulation and control. On January 10, the State Council promulgated the 11th National Regulation, requiring that the down payment for second home loans should not be less than 40%. On April 15, the State Council required that for households purchasing a second home with a loan, the down payment should not be less than 50%, and the loan interest rate should not be less than 1.1 times the benchmark interest rate. On April 17, the New China Ten Regulations were promulgated. In areas where commercial housing prices are too high, rising too fast, and supply is tight, commercial banks can suspend the issuance of loans for the purchase of third or higher housing units based on risk conditions. Purchase restriction policies have been introduced in various places, and Shanghai and Chongqing are piloting real estate taxes. This was called the strictest real estate control policy in history, but high-priced land kings continued to emerge, and housing prices soared after March.
In 2011, the down payment for second homes was increased, and the "Eight Articles of the New Country" were announced, the down payment ratio for second home loans was raised to 60%, and the loan interest rate was raised to 1.1 times the benchmark interest rate. Shanghai and Chongqing officially implemented property tax. But home prices continue to rise. Since 2012, a crackdown on small-property housing has been launched. Many ministries and commissions have repeatedly stressed that real estate regulation will remain unwavering. In February, the Ministry of Housing and Urban-Rural Development said it would accelerate the implementation of real estate tax collection and expand the pilot scope. The Ministry of Land and Resources has introduced new land supervision policies to crack down on small-property housing. But housing prices in first-tier cities continue to rise.
In February 2013, the five new national regulations were promulgated, which not only reaffirmed the implementation of control policies with purchase restrictions and loan restrictions as the core, and resolutely cracked down on speculative investment in housing purchases, but also once again required all localities to announce after 2011 Annual house price control target. In March, the State Council issued the "Notice on Relevant Issues Regarding Further Regulating the Real Estate Market", in which the personal income tax on second-hand housing transactions was adjusted from 1% of the total transaction amount to 20% of the difference. Developers had to trade price for volume in the second half of the year, and housing prices grew slowly.
In 2014, various regions gradually loosened their purchase restriction policies. On September 30, the central bank issued a new housing loan policy. For families who own one house and have paid off the corresponding home purchase loan, when purchasing a second home with a loan, they can apply for the first home loan. House loan policy implementation, etc. Compared with the previous policy on the identification of credit sets, this policy has relaxed the identification of first, second and multiple sets of credit. After the introduction of the New Deal, property markets across the country experienced a short-lived transaction peak and house prices stagnated.
In March 2015, the central bank, the Ministry of Housing and Urban-Rural Development, and the China Banking Regulatory Commission jointly issued a document, reducing the down payment for second homes nationwide to 40%; the Ministry of Finance notified that the purchase period for individuals selling ordinary residences and business tax exemption will be reduced from 5 years to 2 years. Various regions have liberalized provident fund policies, the central bank has cut interest rates three times so far, and housing prices across the country have shown a differentiated trend.
(The above answers were published on 2015-09-10, please refer to the actual relevant current home purchase policies)
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