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According to statistics from The Paper, as of now, more than 80 cities have announced support for state-owned platform companies to purchase commercial housing for use as affordable housing, resettlement housing, talent housing, turnover housing, etc. Among them, at least 36 cities have issued notices to collect housing sources.

Most cities are in the preparation and collection stage.

At present, the stockpiling of existing houses in most cities is still in the stage of preparation and collection of housing sources. There are not many cities that have completed the stockpiling or even converted it into affordable housing and put it into operation. Only Chongqing, Fuzhou City, Fujian Province and other first batch of pilot cities for the rental housing loan support program, most of the projects are used for leasing rather than sale.

For example, in Chongqing, at the beginning of this year, Chongqing's state-owned enterprises acquired a total of 7 projects, with a total of 4,207 housing units. Currently, many apartment projects have been put into rental operation; as a state-owned enterprise in Fuzhou, Fuzhou Anzhu Development Co., Ltd. is mainly responsible for the task of converting Fuzhou's stored inventory housing into affordable rental housing. Previously, the company had acquired about 5,000 existing housing units, which are scattered in Gulou, Taijiang, Jin'an, and Cangshan, covering 106 communities. It is planned to be renovated and put on the market in multiple batches before the end of 2025.

According to CRIC analysis, as more and more cities release detailed rules for stockpiling and clarify the requirements for collecting housing, coupled with increased support for affordable housing re-lending, the stockpiling of existing housing is expected to make more substantial progress in the second half of the year.

Chen Wenjing, director of market research at China Index Academy, also said that the pace of "state-owned enterprises' acquisition of unsold new homes" still needs to be further accelerated, and there are still few cities that have issued solicitation notices. According to data released by the central bank, the balance of affordable housing re-loans was 12.1 billion yuan as of the end of June. The promotion of state-owned enterprises' acquisition may face certain challenges, including acquisition prices and mismatch between supply and demand.

Marginal easing of the implementation policy

At least 36 cities across the country have issued notices for the collection of housing resources. The collected housing will be used for affordable housing, resettlement housing, talent housing, turnover housing, etc.

The solicitation notices of various places also specify the solicitation conditions. In terms of housing sources, the building area of ​​a single unit is generally required to be 120 square meters or less; the ownership of the housing source is clear and tradable, the transportation is convenient, the supporting facilities are complete, and a certain parking space ratio is met. In terms of the purchase price, most cities require the replacement price of affordable housing in the same area as the reference upper limit, that is, the land allocation cost and construction cost plus a profit of no more than 5%.

According to CRIC's report, acquisition conditions in various places also show the characteristics of "strict in the early stage and marginal correction in the current stage". The driving force is that the actual acquisition effect of the implementing cities is slow. The cities that "enter the game" later combine the unique stock structure characteristics, optimize and correct them, and then re-formulate the norms and requirements that are in line with their own development and market needs. The correction caliber of each city is significantly different.

Early stock acquisition policies generally required that the acquired assets be ready-made or completed, and mainly whole-building and whole-unit residential properties, with an area of ​​70 or 90 square meters, and mainly used for rental-type affordable housing. In addition, there are specific requirements for rail transit and living facilities around the project.

Cities that have recently introduced policies have optimized the acquisition conditions in terms of housing qualifications, area, nature, etc. Take Shenzhen, Guangdong Province as an example. On August 7, Shenzhen relaxed the nature of the acquisition of existing properties to "commercial housing, apartments, dormitories, etc." and relaxed the housing status to "four complete certificates". At the same time, it also relaxed the asset form to "give priority to the whole building and the whole unit", but did not specify that it must be "the whole building and the whole unit", that is, cities can appropriately relax the form requirements under special circumstances.

On August 12, Zhaoqing, Guangdong Province relaxed the asset form to meet the requirement of "giving priority to whole buildings or units that have not been sold and can be closed for management", without making any mandatory requirements; the nature of assets was also relaxed to residential and apartment formats, which can be rented or sold after acquisition; in addition, the area of ​​the acquired housing was relaxed to less than 120 square meters.

On August 14, the acquisition policy details of Shangqiu City, Henan Province showed that the housing status was relaxed to meet the requirements of "four complete certificates and meeting the conditions for delivery and use". At the same time, the area of ​​the acquired housing was relaxed to less than 120 square meters, and there was no written mention of the asset form of the acquired housing and the requirements for supporting facilities around the acquisition project.

Acquisition is no longer limited to commercial housing that has already been built. On August 19, Poyang County, Shangrao City, Jiangxi Province, issued a notice on the issuance of "Several Measures for Promoting High-Quality Development of the Real Estate Market in Poyang County". In accordance with the principle of purchasing according to demand, make full use of the national affordable housing refinancing policy, organize local state-owned enterprises and real estate companies, especially real estate companies whose debts are about to mature and unable to repay, to negotiate and purchase apartments and new commercial housing that meet the requirements of apartment type and area that are under construction (the main part has been completed and can be delivered within one year) at a reasonable price for sale as allocated or rented affordable housing.

For the first time, a local government and a listed company reached a large-scale stockpiling agreement

On August 9, Huafa Group (600325.SH) announced that it plans to conduct stock commodity housing and supporting parking space trading business with the company's controlling shareholder or its subsidiaries, with the total transaction amount not exceeding 12 billion yuan. This is also the first large-scale storage agreement reached between a local government and a listed company.

The transaction methods include but are not limited to direct sale of commercial housing and sale of equity in real estate project companies. The transaction of real estate is mainly to help Zhuhai accelerate the structural reform of the housing rental supply side, revitalize the existing housing stock, and effectively increase the supply of affordable housing, talent housing and commercial rental housing.

According to Huafa Group's 2023 annual report, the company's land reserves in Zhuhai are about 1.17 million square meters. Based on the company's average selling price in Zhuhai, the 12 billion yuan acquisition amount corresponds to a sales area of ​​about 430,000 square meters, equivalent to 36% of the company's land reserves in Zhuhai. In terms of sales amount, the acquisition amount is equivalent to 10% of the company's sales in 2023.

GF Securities believes that this stockpiling is the first large-scale stockpiling agreement reached between local governments and listed companies. It provides a reference template for subsequent stockpiling by other cities and companies and is an important node in the implementation of the stockpiling policy.

However, Founder Securities also reminded that as the two parties to the transaction, the game over the purchase and storage price will make the negotiation process longer. Developers will strive for higher purchase and storage prices to protect the company's interests, and local governments will strive for lower purchase and storage prices to increase the rental yield of affordable housing.

Purchasing and storage has the most direct effect on destocking the property market

What will be the direction of the storage policy and what impact will it have on the market?

Zheshang Securities said that Shenzhen's announcement on soliciting affordable housing is of symbolic significance. What is worth paying attention to in the second half of the year is the relaxation of the conditions for the purchase and storage policy and the acceleration of the implementation speed. It is still a high probability event that the policy will be strengthened to stabilize the real estate market within the year.

In its report, Tianfeng Securities pointed out that recent Politburo meetings, central bank work meetings, etc. have repeatedly emphasized the need to fully adhere to and implement the "storage" related work in the second half of the year. It is expected that other high-energy cities will follow suit quickly in the second half of the year. In addition, the supply side of land supply in core cities has shrunk significantly this year. "Active" destocking methods such as storage and land supply reduction will accelerate the process of balancing the supply and demand relationship in various places. The policy goal may be to "stabilize prices."

Chen Wenjing said that state-owned enterprises' purchase and storage of unsold new homes will have a multi-faceted impact on the market.First, it is conducive to accelerating the supply of affordable housing, better meeting the housing needs of wage-earning groups, and promoting the rational allocation of real estate resources. Second, it is conducive to the destocking of market stocks and easing the financial pressure of developers. The destocking effect is the most direct.

Founder Securities believes that the real estate data has shown marginal improvement, while the policy actions such as "stockpiling" have been accelerated, and the industry bottom feature signal has emerged. With the continued efforts of policies, the industry is expected to spread from local stabilization to the whole.

Guotai Junan Securities stated in a research report that as more and more high-tier cities announce the acquisition of existing housing, the acquisition price will become the focus of market attention.If the price is at a reasonable level or higher than market expectations, it will improve market sentiment, and also help developers revalue their assets.