Will Beijing lift the guideline price restrictions on second-hand housing?Haidian District Housing Authority: Houses can be displayed to the public at market prices – Wall Street News

On September 11, according to media reports, the reference prices for second-hand housing transactions in 29 communities in Haidian District, Beijing, have been cancelled.

In this regard, staff from the Beijing Haidian District Housing Management Bureau told The Paper that dynamic adjustments are currently being made and housing information can be displayed to the public at normal market prices.

A person from a real estate agency said, “Starting from last Friday (September 8), listings can be displayed according to market prices. Whether the guide price is lifted will be subject to the official decision.”

The above-mentioned second-hand housing transaction guide prices will be introduced in 2021. On September 29, 2021, according to the “Beijing Daily”, the Beijing Haidian District Real Estate Brokers Association issued an internal self-discipline initiative within the industry, calling on intermediaries to jointly resist malicious competition for housing resources. The Haidian Housing Association has also released guidance reference prices for second-hand housing transactions in some popular communities for the reference of intermediaries.

At that time, “Beijing Daily” quoted the relevant person in charge of the Beijing Housing Association as saying that under strict supervision, there are still some intermediaries that try to obtain more housing sales by hinting, instigating or directly helping owners to raise selling prices. Malicious grabbing and prying of orders not only disrupts the second-hand housing transaction market, but is also not conducive to the sound and healthy development of the real estate brokerage industry. To this end, the Beijing and Haidian District Real Estate Brokers Associations have issued self-discipline initiatives within the industry, calling on intermediaries to jointly resist malicious competition for housing supply by raising house prices. At the same time, based on the transaction price situation in the past year, the Haidian Housing Association has released guidance reference prices for second-hand housing transactions to intermediaries for their reference in some hotspot communities with large price increases and large transaction volumes.

According to reports, the previous guidance price for second-hand housing transactions in Haidian District was introduced to curb the popularity of housing in school districts. Beijing’s school district housing market has seen booming transactions from the fourth quarter of 2020 to the fourth quarter of 2021. Second-hand housing prices in popular school districts in Haidian District and Xicheng District have risen sharply, driving the overall rise in second-hand housing in Beijing at that time. Among them, at the beginning of 2021, the phenomenon of “price increases of 200,000 and 300,000 overnight” appeared in popular school districts in Haidian District. Take Hummingbird Home Community as an example. This community is located in Zhongguancun No. 3 Primary School, one of the top primary schools in Beijing. The unit price has jumped from about 140,000 yuan in mid-2019 to more than 180,000 yuan after two jumps. There are even some with a unit price of 200,000 yuan. The offer, even so, is still “hard to get a room.”

In this regard, Haidian District has released guidance reference prices for second-hand housing transactions in popular communities. The first batch is targeted at 29 key communities in Haidian District (popular communities with large increases and large transaction volumes), divided into small units (under 60 square meters), medium units ( 60-90 square meters) and large units (more than 90 square meters) set a listing guide price. If the price exceeds 1% of the guide price, no intermediary is allowed to list, and the transaction cannot be completed through an intermediary, otherwise the intermediary license will be revoked. However, according to public reports, the Haidian District pilot second-hand housing transaction guide price does not require banks to use the guide price as a basis for lending.

According to previously disclosed data from the Zhuge Housing Data Research Center, including Hummingbird Home, Keyu Community, etc., all have set guide prices. Taking Hummingbird Home as an example, the listing guide price for small units (under 60 square meters) is 171,000 yuan/square meter; the listing guide price for medium-sized units (60-90 square meters) and large units (more than 90 square meters) is set at 146,000 yuan/square meter. /m².

However, media reported that Haidian District had previously implemented a multi-school zoning policy. Some parents said that although they purchased Hummingbird Community earlier than the specified time, they were not able to pass the nearby enrollment and were assigned to Zhongguancun No. 3 Primary School. Instead, they were transferred to Surrounded by Wanquanhe Elementary School. This has also made housing prices in school districts gradually return to rationality.

The Paper saw from the Beike housing search platform that there are currently 70 houses for sale in this community, and the listing prices of many small-sized houses are higher than the previously set guide prices. Taking a 47.5-square-meter house in this community as an example, the current listing price is 179,790 yuan/square meter, and the total listing price is 8.54 million yuan.

Chen Xiao, a senior analyst at Zhuge Data Research Center, pointed out that from the current point of view, Beijing’s second-hand housing market has faced certain downward pressure this year. From January to August 2023, Beijing’s second-hand housing transactions were 105,010 units, an increase of 9.8% compared with the same period in 2022. However, it is still down 13.5% compared with the same period in 2021. At the same time, it showed a downward trend for four consecutive months from April to July. In August, driven by favorable policies, it stopped falling and rebounded. The necessity for the existence of guide prices for second-hand houses is gradually weakening. In order to boost the market and stimulate the enthusiasm of home buyers to enter the market, liberalizing the guide prices is the only way to go.

Chen Xiao mentioned that in fact, many cities have gradually relaxed the guide prices for second-hand houses since the second half of last year. At the end of June last year, Xi’an suspended the release of guide prices, and cities such as Chengdu, Guangzhou and Dongguan also loosened guide prices. Actual transactions Lending by banks and banks is basically not affected by the guide price, and Shenzhen has repeatedly reported that it will adjust the guide price. Recently, many cities have officially announced the implementation of “recognition of houses but not loans” and the cancellation of purchase and sale restrictions, etc., which are more beneficial to new homes. The relaxation of guide prices is targeted at second-hand homes, which is conducive to promoting the linkage of first- and second-hand homes and improving the The liquidity of housing supply drives the restoration of confidence in home ownership, which is of great significance in promoting market recovery. At the same time, Beijing took the lead in canceling the price guide for second-hand housing, which also played an important role in guiding policy adjustments in other cities.

Author of this article: Ji Simin, source: The Paper, original title: “Beijing lifts restrictions on second-hand housing guide prices? Haidian District Housing Authority: Houses can be displayed to the outside world at market prices》

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