At the meeting of the Political Bureau of the CPC Central Committee held on April 30, it was emphasized that we should integrate the new changes in the relationship between supply and demand in the real estate market and the new expectations of the people for high-quality housing, make a comprehensive study of the policies and measures to digest the stock of real estate and optimize the incremental housing, pay close attention to the construction of a new model of real estate development, and promote the high-quality development of real estate.

In view of the "combination of policies" recently launched by several departments to digest the stock of real estate and optimize the incremental housing, experts said that the coordination of relevant departments and the launch of a package of policy measures will help stabilize market expectations and promote the release of housing demand.

The interest rate of multi land provident fund loan was reduced

In terms of optimizing the incremental housing policy, on May 17, the People's Bank of China issued a notice on lowering the interest rate of individual housing provident fund loans; On the same day, the Ministry of Housing and Urban Rural Development printed and distributed the Notice on Doing a Good Job in Reducing the Individual Housing Loan Interest Rate of Housing Provident Fund, guiding local housing provident fund management organizations to implement it.

Up to now, many regions in China have followed up the implementation. Among them, the four first tier cities in Beijing, Shanghai, Guangzhou and Shenzhen have made it clear that for new loans issued after May 18, 2024, the loan interest rates of the first personal housing provident fund for less than five years (including five years) and more than five years are 2.35% and 2.85% respectively, and the loan interest rates of the second personal housing provident fund for less than five years (including five years) and more than five years are 2.775% and 3.325% respectively.

As for the stock provident fund loan, Beijing, Shanghai and Guangzhou all said that for the personal housing provident fund loan with a term of more than one year, the adjusted personal housing provident fund loan term grade interest rate will be implemented from January 1, 2025 (inclusive). The adjusted interest rate of Shenzhen stock provident fund loan will be implemented from July 1, 2024.

"Take a personal housing loan of the first housing provident fund with an amount of 1 million yuan and a term of 30 years as an example, if the repayment method of equal principal and interest is selected, the monthly payment will be reduced from 4270.16 yuan to 4135.57 yuan, reducing about 135 yuan, and the total interest expenditure will be reduced by 48500 yuan. The benefits to the buyers are real," said the relevant person in charge of the Housing Provident Fund Supervision Department of the Ministry of Housing and Urban Rural Development.

Synchronous adjustment of commercial housing loan policy

In addition to the housing provident fund loan, the interest rate of commercial individual housing loan is also favorable. The notice issued by the People's Bank of China on adjusting the interest rate policy for commercial individual housing loans clearly cancels the lower limit of the interest rate policy for commercial individual housing loans for the first and second houses at the national level.

According to the reporter's preliminary statistics, except for a few cities such as Beijing, Shanghai, Guangzhou and Shenzhen, the lower limit of the mortgage interest rate for the first house and the second house in most cities has now fallen to the national level.

"From the perspective of policy effect, the housing loan interest rate in most cities is expected to decline by 0.3 to 0.4 percentage points after the notice of canceling the lower limit of the commercial individual housing loan interest rate policy for the first and second housing at the national level is implemented." Insiders believe that.

In addition, according to the notice on the policy of adjusting the minimum down payment ratio of individual housing loans jointly issued by the People's Bank of China and the State Administration of Financial Supervision, the minimum down payment ratio of individual housing loans has reached the lowest level in history. Many insiders believe that lowering the minimum down payment ratio will better meet the demand for rigid and improved housing.

"The housing finance policy has been significantly adjusted to support the healthy and stable development of the real estate market from the demand side. It is expected that the real estate market in China is expected to stabilize and recover in the future," said Dong Ximiao, the chief researcher of China Merchants Association.

Increase the supply of affordable housing

The policy "combination boxing" also proposed specific measures for stock property. The People's Bank of China announced the establishment of 300 billion yuan of affordable housing refinancing to support local state-owned enterprises to purchase commercial houses that have been built but not sold at a reasonable price and use them as affordable housing for rationing or renting.

Experts analyzed that the newly established affordable housing refinancing by the People's Bank of China will form a joint force with the "white list" mechanism of guaranteed delivery buildings. The enhanced ability of real estate enterprises to withdraw funds will help more projects meet the "white list" conditions, form a virtuous circle, and boost the confidence of house buyers.

Wang Qing, the chief macro analyst of Oriental Jincheng, said that the continuous promotion of guaranteed housing delivery is expected to change the situation of year-on-year decline in the completed area of commercial housing since the beginning of the year, and can also effectively alleviate the inventory pressure and alleviate the financial strain of some real estate enterprises. Measures such as easing purchase restrictions and lowering mortgage interest rates can stabilize property market expectations, which is also the key to promoting the steady and healthy development of the real estate industry.

"A series of policies and measures will stabilize and promote the steady and healthy development of China's real estate market." Liang Zhonghua, macro analyst of Haitong Securities, said that from the demand side, increasing the supply of affordable housing is conducive to meeting the rigid and improving residential needs of residents, boosting housing consumption confidence, and improving residents' willingness and ability to consume housing; From the supply side, the pressure on capital and inventory of real estate enterprises is expected to be eased.