To activate potential demand, many places have limited time to retain the old school district through the "old for new" housing policy
2024-08-14
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Another city is planning to stipulate that after the "old for new" housing stock, the school districts of old houses can be retained for a limited period of time - the "Cangnan County Work Plan to Promote the "Old for New" Housing Market (Trial) (Draft for Comments)" (hereinafter referred to as the "Draft for Comments") is currently being publicly solicited for comments on the county government's official website. It clearly states that when selling self-owned houses in the county and purchasing newly built commercial housing (based on the time of online signing of the purchase contract), support will be provided to retain the school district places of old houses in the starting grades of public schools in the compulsory education stage for two years.
The Paper (www.thepaper.cn) noted that currently, Nanjing, Taicang, Taizhou, and Qingdao West Coast New Area in Jiangsu Province have stipulated that during the implementation of the "old for new" policy in the property market, the admission qualification of the school district where the old house is located will be retained. Nanjing retains the qualification for 3 years, and the rest retain it for 2 years.
According to the "Draft for Soliciting Opinions" issued by Cangnan County, Wenzhou City, the "old for new" housing purchase policy means that buyers can first lock in newly built commercial housing, and then support the people's improvement housing needs such as "selling old and buying new, old for new" by selling second-hand old houses or by having real estate companies or designated acquisition entities directly purchase old houses.
"In recent years, Wenzhou's real estate market has been facing the dilemma of a sluggish second-hand housing market. The transaction prices of second-hand houses have repeatedly hit new lows, which has not only affected the overall stability of housing prices, but also hindered the demand of buyers to change houses. Many families are unable to buy their favorite new houses because they have difficulty selling their second-hand houses, resulting in the real estate market falling into a vicious circle of 'unable to sell old houses and unable to buy new houses'." The Wenzhou Evening News reported that in order to break this deadlock, Cangnan County launched the "old for new" policy, aiming to accelerate the destocking of second-hand houses and promote new home sales through policy guidance and market mechanisms.
Cai Zonghan, a real estate analyst, said in an interview with China City News that buyers of improved housing are an important consumer group in the market. However, when they sell their existing self-occupied housing, the demand of these buyers cannot be fully released due to the current structural supply imbalance and insufficient liquidity in the market.
From a national perspective, more than 100 cities have launched the housing "old for new" policy. Yan Yuejin, research director of E-House Research Institute, believes that the implementation of the "old for new" policy is related to the surge in second-hand housing listings, transaction difficulties, and the pressure on real estate companies to reduce inventory. As an innovative measure, the "old for new" policy in the real estate market will help activate potential demand, revitalize existing real estate, optimize incremental housing, and promote the stable and healthy development of the market.
The Paper reporter Yao Silu
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