What signals are released by optimizing the guiding price policy for second-hand houses
2023-09-20
Recently, the news that the reference prices for second-hand housing transactions in 29 residential areas in Haidian District, Beijing have been cancelled has attracted attention. Regarding this, the staff of the Haidian District Housing Management Bureau in Beijing stated that it is not completely cancelled, but dynamically adjusted, and sellers can display housing information to the public at normal market prices. The guidance price for second-hand housing, also known as the reference price for second-hand housing transactions, was announced with the original intention of suppressing speculation and stabilizing market transactions. In 2021, multiple cities such as Shenzhen and Xi'an will implement guidance pricing policies for second-hand housing. From the perspective of operational paths, the detailed rules vary across regions, with most of them using guidance prices as the basis for loans and evaluation prices to guide rational market transactions. For example, in the actual transaction price, the portion of funds that is higher than the guided price evaluation needs to be raised by the homebuyer themselves and paid together with the down payment, reducing the homebuyer's leverage ratio. However, the guidance prices for second-hand houses in Haidian District, Beijing are different. At the beginning of 2021, there was a phenomenon of "overnight price increase of 200000 yuan and 300000 yuan" in popular school district houses in Haidian District. In September of that year, the Haidian District Real Estate Brokerage Association of Beijing issued guidance prices for second-hand houses in some hot residential areas. If the guidance price exceeds 1%, intermediaries will not be allowed to list and transactions cannot be made through intermediaries. Otherwise, the intermediary business license will be revoked. It can be seen that the original intention of this policy is to curb the overheating of school district housing, prevent homeowners or intermediaries from intentionally raising the listing price and disrupting market transactions. However, it is understood that at that time, the pilot second-hand housing transaction guidance price in Haidian District did not require banks to use the guidance price as the basis for lending. From the subsequent market performance, it can be seen that this policy has indeed played a stabilizing role in market expectations, with some high premium school district housing prices gradually returning to rationality. More importantly, with the implementation of "equalization of educational resources" measures such as multi school district zoning and teacher rotation, coupled with significant changes in the second-hand housing market environment compared to two years ago, the high demand for housing in school districts has subsided. At this time, adjusting some restrictions on the guiding price of second-hand housing is a positive signal to the market. On the one hand, the 29 residential areas mentioned above can display real price information, improve housing liquidity, and be conducive to the stabilization and recovery of the second-hand housing market in Beijing. On the other hand, "dynamic adjustment" does not mean complete cancellation, and the original intention of preventing speculation from returning has not been changed. Currently, the proportion of housing investment transactions in school districts has significantly decreased, and adjusting the guidance price related restriction policies is to "implement policies according to time, situation, and location", which helps to maintain stable and healthy development of the second-hand housing market. In fact, since the end of June 2022, Xi'an has suspended the release of guidance prices, and cities such as Chengdu, Guangzhou, and Dongguan have also relaxed their guidance prices. According to statistics, many out of the 15 cities nationwide that implement the guidance price for second-hand housing have cancelled this policy. This approach has three benefits: firstly, it further meets the reasonable housing needs of homebuyers. After the cancellation or relaxation of the guidance price for second-hand housing, actual transactions and bank lending are basically not affected by the guidance price. Homebuyers can enter the market with lower down payments, which can meet the needs of both immediate and improvement needs on a larger scale, and is conducive to activating the incremental demand that could not meet the threshold before entering the market. Secondly, it helps with the linkage transaction of a second-hand house. If the guiding price of second-hand houses is no longer used as a basis for intermediary agencies to display and bank loans, it will help
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Daily
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