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On July 31, 2024, Zhengzhou Housing Security Department announced the cancellation of the price guidance for commercial housing sales, and developers can set their own prices for sales or go through the pre-sale (sales) permit filing procedures. Following the full cancellation of purchase and sales restrictions in 2023, Zhengzhou's housing market policies have been fully relaxed.

The commercial housing sales price filing system was implemented in 2010 as a means of regulating housing prices. All regions have relevant regulatory measures, requiring real estate companies to sell at the filing price, or to fluctuate up or down according to a certain ratio. Otherwise, the purchase contract may be invalid.

A Southern Weekend reporter called the Zhengzhou Housing Security and Real Estate Management Bureau, and the relevant staff said, "In general, it is implemented in accordance with the central government's policies."

According to statistics from the China Index Academy, since 2024, cities such as Shenyang, Lanzhou, Zhengzhou and Ningde have clearly cancelled price limits on commercial housing sales.

or polarization

"It's only the second day (after the policy was announced), and there's no obvious reaction in the market yet." A real estate agent in Zhengzhou Hi-Tech Development Zone told Southern Weekend reporters, but he feels that the property market will become polarized in the future, and high-quality properties will become more and more expensive.

The houses that are selling well in his hands now are all improvement houses. These houses have obvious advantages in terms of regional location, surrounding facilities, and community quality.

Shell App shows that there are 40 blocks in Zhengzhou, and the average price of new houses in each block has diverged. The average price of new houses in most blocks remains in the "100,000" range, and the average price of the top ten real estate projects in sales volume is in this range, none of which exceeds 20,000 yuan per square meter, and most of them have adjusted their prices downward this year.

In the Beilong Lake area, which is a financial cluster, most of the new residential houses for sale are large-sized, with an average price of 36,000 yuan per square meter, and the price has risen slightly this year.

"The price of villas used to be around 23,000 yuan per square meter, but when I went to see them a few days ago, they were no longer priced below 25,000 yuan per square meter." A Zhengzhou real estate agent who has been working for five years was introducing a property located in the Huiji North area to a Southern Weekend reporter and said that among the real estate projects that are full of high-rise buildings, this one is mainly small high-rise buildings and villas, and has the advantages of environment, schools, subways, etc., and its price has remained relatively stable.

In contrast, the average property price in the Huiji North section has declined significantly this year, reaching a high of 15,300 yuan per square meter in March and falling to 13,300 yuan per square meter in July.

A real estate person in Zhengzhou who wished to remain anonymous commented that the original purpose of price control was to limit the upper limit but not the lower limit, and as sales in most commercial housing markets were flat in July, "the government simply relaxed the restrictions."

“The market is for the market, and security is for security”

In August 2023, the State Council reviewed and approved the "Guiding Opinions on Planning and Building Affordable Housing" (i.e. "Document No. 14"), which clearly defined two major goals: one is to increase the construction and supply of affordable housing, and the other is to return commodity housing to its commodity attributes. This means that in the future, China's housing supply system will gradually form a dual-track system of "commodity housing + affordable housing".

The month after Document No. 14 was issued, Zhengzhou issued a new policy to completely cancel the purchase and sales restrictions, support residents' rigid and improved housing needs, and stop the seven-year-long real estate market regulation that began in 2016. It also issued favorable policies for the real estate industry many times, such as reducing the proportion of commercial loans and implementing the "recognize housing but not loans" policy.

It can be said that lifting the price limit is the last step for Zhengzhou to return commercial housing to the market. At the same time, Zhengzhou is also increasing the supply of affordable housing. For example, on July 29, it launched 1,999 units of allocated affordable housing, becoming one of the first cities in the country to start the allocation and delivery of "allocated affordable housing".

Yan Yuejin, research director of E-House Research Institute, told Southern Weekend that Zhengzhou's opening up of housing price pricing space reflects that Zhengzhou has implemented the guidance of "the market belongs to the market, and security belongs to security" in the housing price field. On the one hand, it is an adjustment to the overly strict policies during the previous overheating period, and on the other hand, it paves the way for a new housing model in Zhengzhou in the future. The price of commercial housing fluctuates with the market price relationship, and the supply of affordable housing to solve housing difficulties has increased, which is conducive to solving housing problems in a reasonable and orderly manner.

Yan Yuejin said that at present, some regions still have control over housing prices, and price liberalization will help both ends of the supply chain to make free choices and improve the efficiency of market transactions. The value of some high-quality properties can still remain strong or stable, which has a positive effect on guiding expectations.

Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Urban and Rural Planning Institute, also believes that the current situation of developers drastically reducing prices for promotions, the guidance of the Housing and Construction Department is no longer effective, and giving developers the power to freely adjust prices will help them to promote sales better. At the same time, it also sends a signal to the market that prices are freely set and fluctuate, and buyers and sellers are responsible for themselves. Early owners should not cause trouble to developers because of price cuts in the later period.

(Southern Weekend reporter Wei Lincong also contributed to this article)

Southern Weekend reporter Zhou Xiaoling

Editor: Feng Ye