news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Source: Time Weekly Author: Liang Zhengyu

The trend of state-owned assets purchasing and storing commercial housing has also reached Shenzhen.

On August 7, Shenzhen Anju Group Co., Ltd. (hereinafter referred to as "Anju Group") issued the "Notice on the Collection of Commercial Housing for Use as Affordable Housing" (hereinafter referred to as the "Notice"). The "Notice" stated that in order to actively build a "security + market" housing supply system and follow the principles of "marketization, rule of law" and voluntary participation by both parties, companies affiliated to Anju Group intend to carry out the work of purchasing commercial housing for use as affordable housing, and the collection period will be until October 31, 2024.

The scope of collection includes commercial housing, apartments, dormitories, etc. within Shenzhen City (excluding the Shenzhen-Shantou Special Cooperation Zone), and priority will be given to unsold buildings or units that can be closed and managed.

In addition, the acquired properties must meet four conditions, including: suitable location, located in an area with convenient transportation and relatively complete supporting facilities; suitable apartment size. In principle, the main apartment size of the project (housing) should meet the requirements of Shenzhen’s affordable housing types and areas (below 65 square meters); convenient living, close to subway entrances and bus stops, and with relatively complete infrastructure and living facilities and other livable conditions; complete procedures, with all four certificates required to ensure the legality and compliance of the project and meet the loan requirements of financial institutions.

Yan Yuejin, deputy director of Shanghai E-House Real Estate Research Institute, said that the standards for Shenzhen's acquisition of inventory housing are similar to those of other cities, which can be summarized into four dimensions: building integrity, location and supporting facilities, apartment type matching the requirements of affordable housing, and property certificate compliance. "In fact, the most important point is that the region has an industrial foundation, which is related to the orientation of implementing a balance between work and residence in affordable housing in various places."

Anju Group entered the market to purchase and store properties, and the market focused on two aspects: one was the purchase and storage objects, and the other was the purchase and storage prices.

"One of the highlights of Shenzhen's acquisition of commercial housing for affordable housing is that the area is relatively small, mainly below 65 square meters." Li Yujia, chief researcher at the Housing Policy Research Center of the Guangdong Provincial Urban Planning Institute, said that this is because the Ministry of Housing and Urban-Rural Development has clearly stated that the acquisition of existing housing for affordable housing must meet the local minimum area standards for affordable housing. "This is not only required in Shenzhen, but also in other cities across the country. Commercial housing cannot be acquired for the purpose of destocking, but should be promoted on the premise of meeting the requirements of the affordable housing policy."

According to market supply, there are relatively few projects in Shenzhen with main apartment types below 65 square meters. According to monitoring by Shenzhen Centaline Research Center, only a few residential projects in Shenzhen currently meet the requirements in terms of apartment type and whole building/unit acquisition, and most of them are apartment and dormitory projects, as well as some mixed residential and apartment projects.

The "Information Registration Form for Participating in the Collection Project (Housing Source)" required by Anju Group shows that the target of the acquisition needs to fill in the average pre-sale price (if any) and the intended purchase price, and the intended purchase price "is only used as an indication of intention."

"The core focus is on what price to use, how much money there is, and how much can be collected." A marketing person from a well-known real estate company in Shenzhen told the Times Weekly reporter.

"Shenzhen's designation of Anju Group to promote the acquisition and storage work means that achieving financial balance is the first principle of stock acquisition." Li Yujia pointed out that the price of allocated affordable housing is 50% to 60% of the price of commercial housing in the same area. If the funds are to be balanced, the acquisition price may be lower. Therefore, the acquisition targets selected by Anju Group are mainly projects with pressure to deliver housing, debt pressure and capital chain pressure, and the acquisition price should be cost price or "cabbage price".

Before Shenzhen, many cities have already promoted the purchase and storage work.

Statistics from the China Real Estate Research Institute show that as of July 30, more than 60 cities have introduced policies for local governments or state-owned enterprises to purchase existing residential properties for use as affordable housing, including megacities such as Guangzhou, Zhengzhou, Hangzhou, and Chongqing, as well as counties or county-level cities such as Lujiang and Jiyuan.

At present, the effectiveness of state-owned assets storage remains to be tested.

"Judging from the situation of stock acquisition in various places, it is basically still in the early stage of investigating demand. The situation reflected is that, on the one hand, the eligible projects are relatively limited, and on the other hand, developers are less willing to sell to state-owned enterprises at low prices." Li Yujia believes that it is still in a state of bargaining between the two sides. Many market players believe that the government will boost the market and support developers through stock acquisition, and therefore are still waiting for large amounts of funds to come in. However, from the perspective of capital balance, this is impossible.

The aforementioned real estate marketing person believes that "it is difficult for the government, real estate developers and housing to reach a complete agreement on the interests of the three parties. It all depends on who makes the concessions."