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In the past few years, many hot cities across the country have experienced policies such as purchase restrictions, loan restrictions, signing restrictions, sales restrictions, and price restrictions. In recent years, the central government and various ministries have repeatedly emphasized "stabilizing land prices, housing prices, and expectations." The price restriction policy played an important role in stabilizing land prices and housing prices when the market was hot in the past.

With Zhengzhou recently canceling the price guidance for commercial housing sales, more and more cities are canceling the price limits for commercial housing. According to statistics from the China Index Academy, since the beginning of this year, cities such as Shenyang, Lanzhou, Zhengzhou, and Ningde have clearly stated that they will no longer implement the price guidance for new commercial housing sales, that is, cancel the sales price limits.

The so-called "cancellation of price limit guidance" means that real estate developers no longer need to submit the proposed sales price for approval before applying to the local housing and construction department for a pre-sale license for a commercial housing project.

Since the second half of 2021, with the changes in the real estate market environment, the negative impact of the price limit policy has become more prominent. Price inversion not only increases the difficulty of buying houses for real housing needs, but also fails to reflect the real market situation, which goes against the original intention of the policy; limiting the extent of price declines also leads to poor sales of real estate companies and hinders the return of funds. At the same time, in the past two years, regulatory authorities have repeatedly emphasized that the construction of "good houses" also requires matching policies to support it. Under the influence of multiple factors, various places have taken a series of measures to optimize the price limit policy.

Chen Wenjing, director of market research at China Index Academy, said: "First, the cancellation of sales price limits in many places and the return of prices to the market are more conducive to companies creating good products that meet local housing needs, which is a positive response to encourage companies to build "good houses". Second, the cancellation of sales price limits will also help companies to reasonably price and destock, help companies speed up the return of funds and ease financial pressure."

Judging from the housing price trends of various cities, first-tier cities still face downward pressure in the short term, but the population and resource agglomeration effects continue. With the further optimization and adjustment of restrictive policies, the policy effects may gradually emerge, and housing prices still have support and are expected to gradually bottom out and recover. Among second-tier cities, core city housing prices are expected to bottom out, and ordinary second-tier cities are still expected to reduce prices and promote sales, and the downward trend of housing prices may continue in the short term. The release of housing demand in third- and fourth-tier cities is slow, and the support for housing prices is weak, so housing prices may continue to bottom out overall. Overall, the current bottoming out of housing prices still requires continued efforts from the policy side.

(Peninsula All Media reporter Li Xiaofang)