Can unsold commercial housing be reduced in price and transformed into affordable housing? | Hot Finance
2024-08-13
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Shenzhen Special Zone Daily reported that Shenzhen Anju Group Co., Ltd. issued a "Notice on the Collection of Commercial Housing for Use as Affordable Housing" on August 7. 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, the group's affiliated companies plan to carry out the work of purchasing commercial housing for use as affordable housing, and are now collecting commercial housing for use as affordable housing projects in Shenzhen.
This move marks the start of Shenzhen's work to acquire commercial housing for use as affordable housing. The scope of this solicitation is: commercial housing residences, apartments, dormitories, etc. within the scope of Shenzhen (excluding the Shenzhen-Shantou Special Cooperation Zone), with priority given to unsold buildings or units that can be closed for management.
It is reported that the housing conditions must be in an area with convenient transportation and relatively complete supporting facilities, close to the core development area of the region, and have industrial foundation and development advantages. The main apartment size should meet the requirements of Shenzhen's affordable housing apartment size (less than 65 square meters). Convenient living. Convenient surrounding transportation, close to subway entrances, bus stations and other livable conditions.
Stockpiling is a strategy to achieve multiple goals at one stroke
What is "purchase and storage"? In fact, it is the industry term for local governments to organize local state-owned enterprises to purchase existing commercial housing for use as affordable housing. The national video conference on ensuring the delivery of housing held on May 17 proposed that in cities with a large inventory of commercial housing, the government can order on demand and purchase some commercial housing at a reasonable price as affordable housing. After the new policy was introduced, many places responded. According to statistics from the Centaline Property Research Institute, as of July 30, more than 60 cities have introduced relevant "purchase and storage" policies.
One of the prominent problems facing my country's real estate market is the inventory problem. According to data from the National Bureau of Statistics, as of the end of May, the area of commercial housing for sale nationwide was 742.56 million square meters, which was at a high level. The number of second-hand housing listings was also at a high level. According to the monitoring data of Zhuge Data Research Center, the number of second-hand housing listings in 14 key cities monitored in July was 2.29 million units, a month-on-month decrease of 0.8%, which has declined, but is still at a historical high.
According to a survey by Ping An Securities, among the sources of housing for urban households in 2020, purchasing affordable housing/two-limit housing and renting low-rent housing totaled about 7.8%, far lower than the 80% and 30% household coverage ratios of public housing in Singapore and Hong Kong, China.
Through the purchase and storage, on the one hand, the progress of my country's real estate inventory reduction can be accelerated, and on the other hand, the "purchase instead of construction" method also provides another feasible strategy for increasing the number of affordable housing. In addition, the purchase and storage method is generally the purchase of the entire building or unit, which can inject a certain amount of liquidity funds into real estate companies and alleviate the liquidity tension of real estate companies in the downturn of the real estate industry. Therefore, the purchase and storage can be said to be a strategy that kills two birds with one stone.
Difficulty in storage
However, there are currently two difficulties in implementing the policy of purchasing and storing. One is the issue of funding sources, and the other is the issue of purchase pricing.
From the source of funds, state-owned enterprises mainly rely on the 300 billion yuan of affordable housing refinancing set up by the central bank to store unsold new houses. When financial institutions lend 500 billion yuan, the central bank's 300 billion yuan refinancing quota will be used up. If the cost of storage is calculated at 8,728 yuan per square meter (based on the China Index 100 Cities New Housing Price Index), a total of about 71.61 million square meters of commercial housing can be stored.
According to the data from the National Bureau of Statistics, as of the end of May, the area of commercial housing for sale nationwide was 742.56 million square meters. In other words, the acquisition scale matched by the 300 billion yuan affordable housing refinancing seems to be a drop in the bucket for the current inventory. As of the end of June, the balance of the 300 billion yuan affordable housing refinancing was 12.1 billion yuan.
From the perspective of pricing, it is a realistic question how much the developers are willing to offer. Huatai Securities calculated based on the detailed rules of each city and the fact that affordable housing in Xi'an and Fuzhou will be sold at about 50% off the price of commercial housing in the same location. However, if a city has obvious location advantages and can sell at a market price of more than 50% off, then the willingness to be acquired will be weak. If there is a willingness to be acquired, it means that the real estate developers in the city need to set the price at less than 50% off to complete the shipment. In this case, whether the house really has operational value is also worth noting.
Text｜Reporter Qi Yaoqi Intern Ye DiluSource: Yangcheng Evening News•Yangcheng News, Shenzhen Special Zone Daily, Phoenix.com, etc.
