Henan: stabilize real estate investment, cancel unnecessary demand restrictions, and fully release policy dividends as soon as possible and as early as possible

On January 3, 2023, Henan Province held a press conference on Henan Province's efforts to boost market confidence and promote economic stability and improvement, said Sun Shougang, standing committee member of the Henan Provincial Party Committee and executive vice governor of Henan Province, "canceling and adjusting the restrictive policies that hindered the release of consumer demand during the overheated period."

On the same day, the official website of the Henan Provincial Government public "on the issuance of vigorously boost market confidence to promote economic stability and good policies and measures notice" (Yu Zheng [2022] 41, hereinafter referred to as "Notice"), which involves real estate consumption in many places, while emphasizing that "increase the intensity of scheduling, encrypted scheduling frequency as soon as possible as soon as possible, fully release the policy dividends ".

Cancel unnecessary demand restrictions

Sun Shougang said at the conference, "to stabilize real estate investment, the core of which is the full implementation of the financial support for real estate 16 policies and measures, and make every effort to ensure the delivery of the building, stabilize the expectations, expanding the supply, and strive to promote the stable and healthy development of the real estate market."

Henan Province Housing and Urban-Rural Development Department deputy secretary of the party group, deputy director Wang Yi said, Henan Province will be a steady grasp of the "increase, expand, optimize, chemical, strong, promote" six-word policy, the introduction of the "1 N" policy initiatives to support the rigidity and improvement of housing demand, to promote the steady and healthy development of the real estate market, and to promote the development of the real estate market. Promote the steady and healthy development of the real estate market.

"Notice" also said that the guidance around the steady implementation of the long-term mechanism for the stable and healthy development of the real estate market, the full implementation of the 16 financial support and other policy packages, a city by city, city by city with a good policy toolkit, the abolition of unnecessary restrictions on the demand for optimizing the identification of the second suite of standards to encourage the purchase of commercial housing group, multi-pronged approach to release the demand for housing. Encourage all localities to support the talents to purchase houses and settle down and the reasonable housing consumption needs of urban and rural residents through the issuance of housing vouchers, housing subsidies, deed tax subsidies and other means.

In addition to taking measures to release housing demand, the Notice also focuses on areas such as financial innovation and "guaranteed delivery of buildings".

The "Notice" said, focusing on key areas, key regions, key enterprises, and continue to sort out eligible stock asset projects and included in the infrastructure real estate trust investment funds (REITs) project reserve database. Coordinate to support the issuance and listing of eligible REITs projects.

For "guaranteed delivery of buildings", the "Notice" said the commercial banks "guaranteed delivery of buildings" special borrowing projects supporting the actual results of the loan as a financial deposit of incentives, and appropriately increase the weight. All localities should refer to the provincial financial practices, in carrying out competitive financial funds deposit, in due course, the commercial banks to "guarantee delivery of building" special borrowing project supporting loan placement into the assessment indicators, to strengthen the work of incentives.

Construction enterprises will also play a role in "supporting the provincial construction state-owned enterprises to enhance the strength of prying social funds *** with the establishment of the real estate relief fund, to promote the resolution of the problem building, and to promote the steady and healthy development of the real estate market."

"Notice" also emphasized the role of financial institutions, will give full play to the performance appraisal "baton" role, will be the Central Plains Bank, Central Plains Trust to carry out real estate loans reasonable extension of the business, the Central Plains Asset to carry out help real estate enterprises to relieve the difficulties of real estate projects to revitalize real estate projects and other businesses, into the province's financial enterprises responsible for the operation of the performance evaluation The index system, guiding the provincial financial enterprises in accordance with market-oriented principles to protect the reasonable financing needs of real estate projects.

In the judicial field, the "Notice" said to guide the courts at all levels to strengthen the concept of goodwill and civilized implementation, in accordance with the exercise of authority based on accurate and flexible grasp of the scale of seizure, detention, freezing. The "guaranteed delivery building" project to use coercive measures, strictly prohibit the preservation of property over the standard; has taken coercive measures to take the form of live seal, can not affect the "guaranteed delivery building" project resumption of construction.

"Need to fast and furious"

Shanghai E-House Real Estate Research Institute think tank director Yan Yuejin told the "Daily Economic News" reporter via WeChat on January 3: "This time, Henan put forward the six-word policy, that is, 'increasing, expanding, optimizing, chemically , strong, and promote'. Specifically that means increase financing, expand demand, excellent supply, chemical risk, strong service, and promote transformation, there are some new references worth paying attention to."

"In terms of expanding demand, the policy makes it clear that restrictive policies that hinder the release of consumer demand will be canceled. The expression has been the attention of the real estate industry, which can also be considered, some of the restrictions on purchases and loans and other measures have been out of date, it is expected that in the near future across Henan will systematically comb the existing policy, for some restrictive policies will implement a comprehensive abolition and optimization of the orientation. From the specific policy, the reference to the optimization of the second suite identification standards, the second-hand housing transaction tax cost reduction, sub-central cities and other related family home purchase treatment enhancement. Such provisions, the subsequent real estate policy of Henan cities have greater inspiration, also means that the first quarter or a series of policies."

"In terms of superior supply, the policy clearly focuses on improving the supply of improved housing. This expression is a greater inspiration for real estate enterprises and various types of capital side, also means that the follow-up in land supply, housing development, housing allocation, to pay more attention to improve the housing demand. Relevant real estate enterprises should also discover new market opportunities from it and take the initiative to do a good job in product innovation and adjustment."

Yan Yuejin believes: "At present, various places need to work fast and furious in stabilizing real estate. The current social and economic fundamentals around the world is in a critical stage of recovery and improvement, in real estate to actively make up for the shortcomings and seize opportunities. Governments around the world should start from the perspective of stimulating housing consumption and optimizing the business environment, and accelerate the optimization of established real estate policies before the Spring Festival, in order to better promote the real estate into a new track of healthy development."

According to the Henan Provincial Bureau of Statistics, from January to November 2022, Henan's commercial real estate sales area of 99,401,200 square meters, a year-on-year decline of 13.0%, of which, residential sales area fell 13.0%; commercial real estate sales of 601,621,000,000 yuan, a decline of 20.0%, of which, residential sales fell 20.1%.

At the end of November 2022, the area of commercial housing for sale in Henan Province was 24,078,200 square meters, an increase of 1,781,800 square meters from the end of October. Among them, the area of residential houses for sale increased by 995,800 square meters.

In terms of funds in place, from January to November 2022, real estate development enterprises in Henan Province actually had funds in place of 592.255 billion yuan, a year-on-year decline of 20.1%. Among them, domestic loans amounted to 39.959 billion yuan, down 20.2%; self-financing funds amounted to 362.796 billion yuan, down 12.8%; deposits and advance receipts amounted to 121.603 billion yuan, down 31.0%; and personal mortgage loans amounted to 57.122 billion yuan, down 36.3%.