In response to the above policy, Zou Linhua, head of the housing big data project at the Institute of Financial and Economic Strategy of the Chinese Academy of Social Sciences, argued that the restrictive measures taken against some companies' price cuts and promotions are only meant to stabilize market expectations. Strictly speaking, the restriction on decline does not exist, and there are many ways for companies to adjust prices, such as changing rough to hardcover and giving away parking spaces.
The Yangtze River Delta's first "limit down order" landed
Jiangyin Municipal Housing and Urban Renewal Bureau issued a "notice on further promoting the healthy and stable development of the real estate market on a number of matters," which requires that the actual price of commodity housing transactions shall not be higher than the filed price, and prohibits the dumping of low-priced (e.g., below-cost price, price reductions in disguise), price wars. Price war, resolutely put an end to vicious competition, lowering the standard and quality, late delivery and other violations of the law.
Jiangyin is not the first city to introduce the "limit down" order. Before that, Kunming, Yueyang, Huizhou, Tangshan and other cities have introduced similar policies.
The "limit down order" is an alternative control policy in the context of "stabilizing land prices, stabilizing housing prices, stabilizing expectations", which is also aimed at preventing major rises and falls in housing prices and promoting the healthy development of the real estate market.
Turnover downturn under the response?
In recent years, when housing prices fall, there are often owners gather "rights", protesting against developers to reduce prices and other situations. At this time, the real estate price and quality of the "housing problem" will also be frequently staged. If prices fall too quickly, there may also be some home buyers to stop paying the mortgage, or even a "wave of broken payments", triggering financial risks.
Data shows that, from the release of the "limit down order" of the city, "limit down order" is not a universal phenomenon, it only occurs in the inventory is higher, the city is more difficult to melt. Take Jiangyin as an example, according to the data released by Jiangyin 510 real estate network, in August 2021, the city of Jiangyin's commercial housing transactions 975 sets, of which 780 sets of residential transactions, a decline of 22.92%; In addition, as of September 1, 2021, 38,170 sets of houses available for sale; of which 21,951 sets of residential units are available for sale. According to the current rate of depolymerization, the city's residential depolymerization cycle is about 28 months.
It is worth noting that the introduction of the "limit down order" is often weak second-tier or third- or fourth-tier cities. Li Yujia, chief researcher of the Guangdong Housing Policy Research Center, has pointed out that compared with the first and second tier key cities, the third and fourth tier cities tend to have a relatively single, traditional industrial structure, and slower upgrading. The real estate boom and reliance on the strong industrial correlation of real estate to drive upstream and downstream investment, consumption and employment growth are very important to these cities.
Zou Linhua said, "For the first-tier cities do not need to limit the fall order at present, the possibility of a big fall in housing prices is not very large."