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there are new policies to destock the real estate market.

we mentioned in "no one rents office buildings anymore, rents plummet" that there are too many properties built on commercial land in recent years.rents have plummeted and vacancy rates are high.

what should be done with the buildings on these commercial lands?

on june 25, a notice on “commercial to residential conversion” in wanning city, hainan province attracted attention and heated discussion.

specifically, the wanning municipal government office issued a notice on the "work plan for promoting the destocking of commercial and office-type commodity housing". according to the plan, under certain preconditions, buyers of commercial and office-type commodity housing can enjoy the same treatment as residential housing, such as nearby schooling for children, and the same water, electricity and gas charges as residential housing.

subsequently, in july, many cities successively issued "commercial to residential" policies or launched relevant residential land. for example, in the announcement of the fourth batch of residential land transfer in shanghai in 2024, the "original xiaomi land" reappeared as residential land.

in addition, changsha city also issued the "notice on supporting the adjustment of apartments and other residential commercial housing into residential housing related matters."

the notice clearly states that within the jurisdiction of changsha, the planning approval for new apartment and other residential projects will be temporarily suspended. for those apartment and other residential commercial housing projects that have completed the approval of the project master plan but are facing difficulties in the development and sales process,after being proven feasible, it can be adjusted to residential according to regulations and procedures.

in fact, before this, cities such as nanning, guilin, baise and guigang in the guangxi zhuang autonomous region have implemented the "commercial to residential" policy, and more than a dozen commercial projects in nanning have been successfully transformed into residential products.

since 2017, 16 cities including beijing, tianjin, guangzhou, shenzhen and xiamen have successively issued policies to restrict the "commercial to residential" conversion. based on the regulatory policies of many places, it has become a basic principle that unauthorized conversion to residential use is prohibited.

such policy restrictions have resulted in a massive backlog of commercial and office buildings in many cities.

according to the data from the national bureau of statistics, as of the end of june this year, among the commercial houses for sale nationwide,the office space reached 52.11 million square meters, a year-on-year increase of 9.6%; the area of ​​commercial business premises for sale reached 143 million square meters, a year-on-year increase of 2.0%.

the above-mentioned cities’ breakthrough in the “commercial-to-residential” policy is precisely to break out of the predicament of high inventory of commercial and office projects and weak housing consumption, and to inject new vitality into the real estate market.

in the eyes of industry insiders, whether it is to benefit the people or to increase fiscal revenue, "commercial to residential" can be regarded as a "stroke of genius".it is a highly feasible way to solve the current problem of large backlog of commercial office building projects in big cities.

first, converting commercial land into residential land can improve land use efficiency and increase housing supply, thereby improving the economic benefits of land and alleviating land financial pressure.

secondly, increasing the supply of residential land will help meet residents' expectations for high-quality housing. at the same time, "commercial to residential" does not mean that all commercial and office land will be converted into residential buildings. some commercial and office projects will be converted into public facilities such as schools and green spaces, which will help balance the demand for public facilities after the increase in residential land and improve residents' living experience.

however, although the relaxation of "commercial to residential" policies is necessary in the current era, many factors still need to be considered in its actual implementation.

first of all, when adjusting the function of commercial and office housing to residential, it is necessary to consider the area planning positioning and compliance with national land space planning requirements.

at the same time, the established residential land supply indicators must be strictly adhered to to avoid exceeding the established planning scope.

in addition, all localities need to pay attention to the completeness of supporting public facilities around residential projects to ensure that these facilities can be put in place in a timely manner as the "commercial to residential" projects progress.

after all, “commercial to residential” is not just a change in land use, but also involves comprehensive considerations such as the improvement of fire safety standards and the expansion of public service facilities to fully protect the quality of life of residents and the overall safety of the community.