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Zhengzhou issued an announcement

Cover News reporter Yao Ruipeng

On July 31, 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 real estate policies have been fully relaxed. Since 2024, cities such as Shenyang, Lanzhou, Zhengzhou, and Ningde have clearly canceled the price limits for commercial housing sales.

On August 7, one week after the new policy was implemented in Zhengzhou, what changes have occurred in the local property market? Huang Longbin, who has been engaged in real estate work in Zhengzhou for many years, told reporters that consumers are currently in a wait-and-see mood and the expected booking boom has not yet appeared.

Many places cancel the price limit for new home sales

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. Now many places have begun to cancel the commercial housing sales price guidance.

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 reporter found out that since the beginning of this year, cities such as Shenyang, Lanzhou, Zhengzhou, and Ningde have clearly stated that they will no longer implement price guidance for newly built commercial housing sales, that is, they have cancelled sales price limits. In addition, Yangjiang, Zhuhai, Wuhu and other places have optimized price limit policies, such as shortening the time interval for adjusting registered prices and canceling floor price difference limits.

In addition, Hangzhou and Shanghai have adjusted the sales price limit for new homes in the land auction. Hangzhou currently only retains the sales price limit for new homes in the core area. The third batch of commercial housing land transfer announcements in Shanghai also did not mention the real estate linkage price, but the transfer documents require bidding real estate companies to sign a bidding commitment. The commitment includes rational bidding, strict compliance with relevant regulations on real estate market management, and implementation of subsequent work such as land development as required; after the project meets the sales conditions, the sales plan and "one house, one price" are filed with the housing administrative department, and market risks are voluntarily assumed.

Zhengzhou real estate practitioners: No booking boom

On August 7, a week had passed since Zhengzhou cancelled the price guidance for commercial housing sales. Has the market changed because of this reform? "We also conducted market research after the policy was released and took over the marketing of some real estate projects, but from the current market feedback, we did not expect that consumers would be so cautious." Huang Longbin, who has worked in the real estate industry in Zhengzhou for many years, told reporters that after taking over some new home marketing projects, buyers generally had doubts about the rise and fall of housing prices, and the expected rush to book rooms did not appear.

Regarding the future housing prices in Zhengzhou, Huang Longbin said that after enterprises can completely let the market decide the prices, the Zhengzhou real estate market will be polarized, and high-quality real estate will become more and more expensive. There are 40 blocks in Zhengzhou, and the average price of new houses in each block has been differentiated. The average price of new houses in most blocks is maintained within 20,000 yuan, and the average price of the top ten real estate projects in sales is in this range. According to Huang Longbin, in addition to the differentiated average price, the price in some areas has dropped significantly. "Take the real estate in Huiji North Block as an example. The average price has obviously dropped this year. It was still 15,300 yuan/square meter in March, and it was already 13,300 yuan/square meter in July." Huang Longbin said that for the falling prices, consumers are more patient and continue to wait for room for downward movement.

What should consumers pay attention to after the price limit is lifted?

After the price limits were cancelled in many places, what should homebuyers do in the face of the ever-changing property market? "For homebuyers, after the price limits were cancelled, their judgment on the short-term housing price increase is still weak, and it is normal to hesitate when buying a house. The housing prices after market adjustment may better reflect the real supply and demand relationship." Professor Liu Lu of Southwestern University of Finance and Economics told reporters that in the face of the current situation, consumers who have the need to buy a house need to have a strong ability to analyze and judge risks in the property market.

Although the current policy gives real estate companies a certain degree of autonomy in pricing, it is still necessary to pay attention to risks when purchasing related properties. Xiang Hong, a lawyer at Sichuan Hengrong Law Firm, reminded that if the supervision of "worker-backed housing" is not in place, the delivery of the house may fall into uncertainty, or there may be a situation where the mortgage is not released, affecting the delivery and confirmation of the house. In addition, if real estate companies sell too much through the "worker-backed housing" method, it may mean that their financial pressure is relatively large, and buyers need to pay special attention to the delivery of the house. At the same time, Huang Longbin also said that there are many houses in Zhengzhou that have not been delivered on time, which is also a major concern of the people.

In general, the abolition of the price limit for new home sales is a way to regulate the real estate market, aiming to make housing prices more market-oriented and promote the stable and healthy development of the real estate market. However, this also requires the government to strengthen supervision to prevent illegal operations or market instability, and buyers should also carefully assess risks during the purchase process.