2024 is the year with the highest cost-effectiveness for home purchases

2024-02-06

In late January, Yan Yuejin, the research director of the Yiju Research Institute, announced that at least three cities across the country have introduced policies to loosen and cancel purchase restrictions on real estate. On January 27th, Guangzhou clarified that within the restricted purchase area, purchasing housing with a building area of 120 square meters or more (excluding 120 square meters) will no longer be restricted. On January 30th, Suzhou clarified that it would no longer review the eligibility for purchasing a house; On the same day, Shanghai also issued a policy, specifying that from January 31, single people who are not registered in the city can purchase a house outside the Outer Ring Road. The relaxation of housing policies in multiple cities this time fully demonstrates the orientation of a relaxed and friendly housing environment in 2024, and reflects the further adjustment and optimization of real estate policies in various regions based on the new situation of the real estate market. In July 2023, under the clear tone of the Central Committee of the Communist Party of China that there has been a significant change in the supply and demand relationship in the Chinese real estate market, the State Council, various ministries and commissions, and various regions have adjusted and optimized specific measures for real estate policies. Especially in big cities, the actions are quite obvious, and relevant policies include implementing the policy of recognizing houses but not loans, reducing the down payment ratio and mortgage interest rates, and adjusting the standards for ordinary residential properties. From this perspective, current policies in various regions continue the overall tone of the second half of 2023 and create more relaxed conditions for the housing market. Only by understanding the logic behind the relaxation of real estate purchase restrictions can we better understand the upcoming policy trends. There are three main paths or models for relaxing purchase restrictions, namely: relaxation for regions, relaxation for houses, and relaxation for homebuyers. Among them, regional relaxation mainly includes relaxation in urban and suburban areas, relaxation in traditional urban areas and new urban areas, etc; The relaxation of housing mainly includes the relaxation of ordinary residential and quasi residential ("commercial to residential"), as well as the relaxation of large and small unit types; The relaxation of house buyers mainly includes the relaxation of local registered residence registration and registered residence registration in other places, the relaxation of the first and second house buyers, and the relaxation of single and divorced groups. This classification reveals the evolution patterns of policies in various regions. Recently, some cities have relaxed restrictions on the purchase of small and medium-sized apartments. Combining with the previous relaxation of restrictions on the purchase of large apartments, it can be basically seen that the policy evolution logic of "first relaxing the purchase of large apartments, and then relaxing the purchase of small apartments". Understanding such logic helps to grasp policy trends and better adjust market strategies. Based on logical analysis and actual observations, this article analyzes from the perspectives of "selling" and "buying": the aspect of "selling". In the past, "selling" was rarely mentioned because people were more concerned about "buying". However, in the past two years, there have been significant changes in the Chinese real estate market, with a significant increase in the number of second-hand housing listings in many cities and an increased selling mentality. From this perspective, issues such as "how to sell" and "when to sell" have received considerable market attention. It is expected that various regions will pay attention to the issue of "selling" this year. Looking at it now, due to the relaxation of policies in some cities, the potential demand for home purchases has relatively increased, and some sellers are starting to change their pricing strategies. However, for sellers who urgently need to change houses, if the previous purchase cost was not high, they still have the willingness to lower the price. In terms of "buying". Homebuyers are more concerned about whether housing prices will rise or fall. In 2024, overall housing prices in China will remain stable, but there will be structural differentiation. Cities with a strong population base, especially large cities, will experience a "first" trend in housing prices

Edit:Luo yu    Responsible editor:Wang er dong

Source:china.com

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