Establish a long-term mechanism for linkage between housing, land and money
2021-09-15: [Original Article Link].
The construction of long-term mechanism is very important for the stable and healthy development of the real estate market. The new four-in-one linkage mechanism of people, housing, land and money is the core content of the long-term real estate mechanism, and it also points out the direction for the future real estate market regulation.
The construction of long-term mechanism is very important for the stable and healthy development of the real estate market. In 2018, the Party Central Committee and the State Council decided to implement a long-term real estate mechanism. After several years of exploration, focusing on stabilizing land prices, stabilizing housing prices, and stabilizing expectations, through always adhering to the positioning of "housing, not speculation", implementing the main responsibility of the city, and gradually establishing people, housing, land, the new mechanism of the four-in-one linkage of money, China's real estate market has maintained a stable operation. Practice has proved that the long-term real estate mechanism is in line with the national conditions, in line with the law of real estate market development, is accurate and effective.
The long-term mechanism is relatively short-term. In the past, in the process of the development of the real estate market, the stimulation of the real estate market has been used as a way to drive economic growth many times, and the real estate market has been instrumented to a certain extent. In recent years, real estate is not used as a means of stimulating the economy in the short term. It can be seen that even in 2020, the new coronary pneumonia epidemic is very serious period, "housing does not speculate" positioning, "not real estate as a short-term means of stimulating the economy" is also a consistent insistence.
The new four-in-one linkage mechanism of people, housing, land and money is the core content of the long-term real estate mechanism, and also points out the direction for the future real estate market regulation.
People, corresponding to housing needs. In the construction of long-term real estate mechanism, it not only protects reasonable housing demand, alleviates the housing difficulties of specific groups, but also suppresses unreasonable speculation and speculation demand. For example, financial institutions have differences in down payment and loan interest rates for those who just need to buy their first home and those who just need foreign buyers. The differentiated credit policy reflects the support for those who just need to buy a house. In order to alleviate the housing difficulties of new citizens and young people, the state vigorously advocates the acceleration of the development of affordable rental housing, and puts forward support and preferential policies in terms of land, taxes and fees. For speculative and hype people, through the continuous improvement of purchase restrictions, loan restrictions, cracking down on fake divorce, fake small and micro enterprises and other related policies, to achieve "patching" and "loopholes".
Housing, corresponding to housing supply. China's housing security supply system is gradually clear, housing rental supply is increasing. Recently, China has clarified the top-level design of the housing security system for the first time. In the future, the national housing security system will be based on public rental housing, affordable rental housing and shared property housing. At the same time, in solving the outstanding housing problems in big cities, in order to improve the long-standing situation of "selling a long leg and leasing a short leg", it will speed up the shortcomings of housing rental. Including attaching great importance to the construction of affordable rental housing, improving the long-term rental housing policy, gradually making rental housing have the same rights in enjoying public services, and standardizing the development of the long-term rental housing market. It is believed that during the "14th Five-Year Plan" period, more new citizens and young people will be willing to solve the housing problem by leasing, and the expansion of the supply of rental housing will also play a certain role in stabilizing high housing prices in big cities.
Land, indicating the need to stabilize land prices, land will become an important support means to expand the supply of rental housing. The rapid rise in house prices is inseparable from high land prices, and stable land prices are an important prerequisite for stabilizing house prices. Since the beginning of this year, some hot cities have implemented the "two centralized" rules for land transfer, from irregular land transfer to centralized release of land transfer planning and centralized organization of transfer, to a certain extent, it has stabilized the expectation of real estate enterprises to take land, which is conducive to the stability of land prices. At the same time, the practice of limiting housing prices, controlling land prices, and improving quality is being implemented. The relevant departments also strictly examine the qualifications of enterprises for purchasing land, and establish a mechanism for reviewing and withdrawing funds for purchasing land, so as to reduce the business risk of enterprises. In the process of developing affordable rental housing, it is clear that rural collective operating construction land, idle land owned by enterprises and institutions, supporting land for industrial parks and non-residential stock idle houses can be used for construction, these land and real estate could not be used for housing in the past, but now they can be used for affordable rental housing. This is a major adjustment and breakthrough in land policy.
Money, indicating that it will further strengthen real estate financial management. Since last year, various measures of real estate financial management have played a significant role. The "three lines and four grades" financing management rules for real estate development enterprises have made real estate enterprises reduce debt and leverage to achieve positive results, and the operating financial indicators have improved significantly. The implementation of the centralized management system of real estate loans of banking financial institutions has steadily reduced the concentration of real estate loans and personal housing loans of banking financial institutions, avoiding excessive flow of bank loans to the real estate sector. Real estate financial management is a key measure to curb the rapid rise of house prices, avoid the continuous accumulation of bubbles, and reduce the risk of real estate finance.
The long-term real estate mechanism is not a short-term means and an expedient measure, but a fundamental follow in the long-term. It is foreseeable that the long-term mechanism of real estate will continue to be adhered to and improved, and will continue to promote the steady and healthy development of China's real estate market.
Note: This is auto-translated version of an article meant for Chinese audience. A mature and nuanced reading is suggested.