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Our reporters Zhuang Linghui and Lu Zhikun report from Beijing

Policy restrictions on the rise and fall of new home sales prices are further weakening.

Statistical data recently released by China Index Academy show 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 product sales. Yangjiang, Zhuhai, Wuhu and other places have also optimized the price limit policy for new home sales, involving shortening the time interval for adjusting registered prices and canceling the restrictions on floor price differences.

China Business News reporters noted that in addition to the above-mentioned policies that explicitly no longer restrict new home sales prices, relevant departments in many places have recently made it clear on online governance platforms that real estate companies can independently determine new home sales prices. Many interviewees said that after the cancellation of price limits in many places, new home sales will return to marketization, and housing price differentiation will become more obvious, but the market transmission effect still needs further observation.

Housing prices return to the market

Not long ago, the Zhengzhou Municipal Housing Security and Real Estate Management Bureau issued a notice stating that after research by the Zhengzhou Municipal Government, the housing security department will no longer provide guidance on the sales price of newly built commercial housing. Developers will sell at their own prices and go through the procedures for pre-sale (sales) permits (filing) for commercial housing.

Similar to Zhengzhou, relevant departments in Shenyang, Lanzhou, Ningde, Tianshui and other places have recently issued policies stating that new home sales will no longer be subject to registered price restrictions, and developers will make timely adjustments based on market sales conditions. Home buyers and real estate developers can negotiate prices on their own.

In addition to issuing policies to clearly cancel the price limit for new home sales, relevant departments in many places have recently weakened the restrictions on new home sales prices and placed more emphasis on market pricing.

The reporter noticed that recently there have been many complaints on the online governance platform about the sharp drop in new home sales prices. Relevant departments in many places replied that house sales prices are market-regulated prices and are set independently by developers, and there is no regulation on the lower limit of house sales prices.

Not long ago, a netizen left a message on an online governance platform saying that the price of obtaining a certificate for the Tianfu Heyin project in Sichuan Tianfu New District was 22,000 to 25,000 yuan, but now it is sold at an average price of 17,000 yuan, with free parking spaces and property fees. The netizen believes that the corresponding behavior affects the health of the market and asks relevant departments to thoroughly investigate the corresponding "malicious price reduction" behavior.

The Park City Construction Bureau of Sichuan Tianfu New Area replied that the prices of commercial housing are subject to market-regulated prices, and the prices of houses to be sold are clearly marked on a set basis and announced on a "one house, one price" basis at project sales sites, Chengdu Housing and Urban-Rural Development Rong e-Office and other channels. The sales price of each house is negotiated and agreed upon by the buyer and seller, provided that the price is not higher than the announced price, and is included in the specific provisions of the "Commercial Housing Sales Contract".

In addition, many places including Baoding, Wuhan, Hefei, Chongqing, Tianjin and Guangzhou made similar replies on the online government platform. Some regions clearly stated that the sales price of new houses must not be higher than the registered price, while some regions stated that if the sales price is more than 5% lower than the registered price, it is necessary to re-apply for price change procedures, but almost no region has imposed clear restrictions on the lower limit of the sales price of new homes.

The Xuzhou Economic and Technological Development Zone Market Supervision and Administration Bureau also stated in a reply last year that from January 1, 2009, the price of ordinary commercial housing in Jiangsu Province will no longer be approved by the price administration department, but will be determined by the developers themselves, and the specific price ratio will be determined by the companies based on quality, market supply and demand, sales strategy, etc. Since the price of ordinary commercial housing is not within the scope of the "Jiangsu Province Pricing Catalogue", the market-adjusted price is implemented, and the price administration department implements the house price filing management. It is in compliance with regulations that the specific sales price does not exceed the filed price.

Housing price differentiation will intensify

Regarding the market impact of the cancellation of price limits on new home sales in many places, many interviewees said that the commodity housing market will return to a highly market-oriented operation, and the market supply and demand relationship will be more directly reflected in aspects such as housing sales prices in various places. The differentiation of housing prices between different cities and even different sectors in the same city will be further intensified.

"After Zhengzhou City canceled the price limit policy for new home sales, local restrictive real estate policies were completely lifted, and the commodity housing market returned to a highly market-oriented operation." Liang Botao, general manager of China Index Academy Henan Company, believes that canceling the price limit will help guide the market to supply high-quality commodity housing, promote the optimization of the housing supply structure, and better meet residents' demand for improved housing, which is of positive significance to the healthy development of the real estate market.

"Housing sales are priced freely by developers, which is conducive to price cuts and promotions, but it may also exacerbate market expectations of falling housing prices." Li Yujia, chief researcher of the Guangdong Housing Policy Research Center, believes that housing sales prices are mainly based on market supply and demand and expectations. Canceling price limits may affect market expectations and thus affect housing prices in various places.

"Canceling the sales price limit will help companies create good products that meet local housing needs. It will also help companies to reasonably price and destock, help companies speed up the recovery of funds and ease financial pressure." Chen Wenjing, director of market research at China Index Academy, believes that first-tier cities are still under downward pressure on housing prices in the short term, but the population and resource agglomeration effects continue. As restrictive policies are further optimized and adjusted, the policy effects may gradually emerge, and housing prices will still be supported and are expected to gradually bottom out and recover.

"Among second-tier cities, housing prices in core cities are expected to bottom out, and the expectation for companies in ordinary second-tier cities to reduce prices and promote sales remains. The downward trend in housing prices may continue in the short term." Chen Wenjing believes that the current housing demand in third- and fourth-tier cities is being released slowly, and the support for housing prices is relatively weak, so overall housing prices may continue to bottom out.

(Editor: Wang Jinlong, Reviewer: Tong Haihua, Proofreader: Yan Jingning)