High-level concern about real estate to inventory a new round of rescue measures or the introduction.

China Coatings Network
:
for several days in a row the central government for the emphasis on inventory, the property market is also expected to usher in a good. The Shanghai-Shenzhen index fell more than 1 per cent on November 18th, while the real estate sector bucked the trend by 1.63 per cent. Real estate sector led the rise in the early hours of the 18th, the real estate sector bucked the trend, although the afternoon with the broader market down, but as of the close, the real estate sector rose 1.63%. In terms of stocks, Zhongtiancheng Investment, Zhongjiang Real Estate, Air China Real Estate three stocks rose and stopped, Sunshine City rose 9.52 percent, Imperial International rose 7.04 percent, Rong'an Real Estate rose 6.67 percent, Poly Real Estate rose 6.26 percent. On the news side, first at the 11th meeting of the Central Leading Group on Finance and Economics, Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, proposed to digest real estate inventory, promote the sustained and healthy development of real estate, and for the first time to destock real estate. Immediately after the next day's executive meeting of the State Council, Premier Li Keqiang also stressed the need to speed up the reform of the household registration system to promote housing, home appliances and other consumption. The central government's emphasis on inventory, in the current real estate market inventory is high, investment continues to decline in the situation, released a strong policy signal. Expert analysis, a new round of real estate rescue measures will be introduced, the policy will focus on high inventory of third- and fourth-tier cities, including increasing housing demand, further lower the threshold for home purchase and reduce the difficulty of financing housing enterprises. Zhang Dawei, chief analyst at Zhongyuan Real Estate, told the First Financial Daily that the policy orientation to encourage housing consumption so far this year is not only from a macroeconomic perspective, but also because the property market is facing a painful phase of destocking, which is related to both start-up demand and risk resolution. To this end, the central government on the one hand from the fiscal, taxation, credit, provident fund and other related policies to encourage improved demand into the market, on the other hand, through housing security moneticization and resettlement to speed up the digestion of commercial housing inventory. Why is it so important to stock now? On the one hand, it is due to the current high inventory pressure. At the end of October, commercial housing was available for sale at 68.632 million square meters, an increase of 21.22 million square meters from the end of September, according to the National Bureau of Statistics. Over the past two years, the country's area for sale has increased by 239.96 million square meters, an increase of 54%. Of course, inventory pressure mainly comes from third- and fourth-tier cities. Zhang Dawei said that the inventory problem is a divisive problem, the current first- and second-tier market since September 30, 2014 a series of policy stimulus, inventory pressure significantly eased. At present, the pressure is mainly on third- and fourth-tier cities. Data show that from January to October, the growth rate of commercial housing sales in non-key cities fell by 0.4 percentage points from January to September, driving the overall decline in national sales. In terms of real estate development investment, china's real estate development investment in January-October was 7880.1 billion yuan, up 2.0% year-on-year in nominal terms, down 0.6 percentage points from January-September, the lowest level in 21 months. Investment in real estate development fell 2.4 per cent in october. As real estate development investment has traditionally accounted for about 20% of fixed asset investment, and affect the upstream and downstream such as steel, cement industry investment, so the decline in real estate development investment will undoubtedly greatly affect the growth rate of fixed asset investment. Yan Yuejin, director of research at the Think Tank Center of the Easy House Research Institute, believes that although this year the market destocking effect began to appear, but mainly a hard landing under the policy of continued easing, follow-up to achieve a soft landing, but also need to introduce more targeted measures, only real estate to inventory to achieve certain results, the subsequent developers to take land and investment will probably be enhanced. Third and fourth line how to inventory Zhang Dawei said, in order to do everything possible to achieve the goal of destocking, in addition to the market demand for local policy, the supply side, that is, the adjustment of the land market has become a major focus of property policy. However, the focus of this round of inventory is obviously not in the property market hot first- and second-tier core cities, but in the vast number of third- and fourth-tier cities and some deserted second-tier cities. Professor Li Youhua, a member of the Xiamen Municipal People's Political Consultative Conference and director of the Real Estate Research Institute of Ximei University, told this newspaper that after ten years of rapid growth, the real estate industry has now moved from the previous seller's market to the buyer's market, in the process, most of the third- and fourth-tier cities because of insufficient industrial development, insufficient public resources, the attraction to the surrounding population is very limited. Coupled with the large supply of land in the past few years, third- and fourth-tier cities are still facing considerable destocking pressure. Therefore, to effectively digest the inventory of third- and fourth-tier cities, it is necessary to enhance their attractiveness to the surrounding population. Generally speaking, the foreign population of the third- and fourth-tier cities is mainly from the cities and counties under the jurisdiction of the prefecture-level cities, if even the following cities and counties can not attract the population, then the third- and fourth-tier cities to increase housing demand is impossible to talk about. But now the problem is that most of the rural population directly to the first- and second-tier urban development, coupled with many third- and fourth-tier urban population is still moving to first- and second-tier cities, the development of third- and fourth-tier cities has been relatively slow. So how to enhance the attractiveness of third- and fourth-tier cities? Speeding up household registration reform is an important aspect of housing consumption, the future in the people-oriented urbanization of the general policy, home purchase policy will be interpreted and deepened in more cities. However, without good employment opportunities, good education and health care and other public resources, even if there are third- and fourth-tier cities, the surrounding farmers can not produce enough attraction. Therefore, how to speed up the development of the third- and fourth-tier urban industries and the layout of public resources in the future is also very important. For example, Hebei Province proposed to take the national strategy of beijing-Tianjin-Hebei coordinated development as an opportunity to promote the development of the real estate market around Beijing, with the goal of building satellite cities suitable for world-class urban clusters, strengthen the leading role of planning, and not build "sleeping cities" and "sieges". On the other hand, against the background of the continued decline in real estate development investment growth, the State Council decided to further strengthen the transformation of urban shantytowns and put forward a three-year action plan. That is, in the three years from 2015 to 2017, 18 million shantytowns, including urban dangerous housing and urban villages, will be transformed, and 10.6 million rural dangerous housing units will be transformed. In this regard, at present, all over the implementation of the security housing monecuration subsidies, the acquisition of the stock of commercial housing for the protection of housing and other initiatives are also an important way to solve the inventory of commercial housing. For example, the Zhengzhou municipal government announced that if the relevant families voluntarily give up the eligibility to buy affordable housing, and instead buy ordinary commercial housing, will be their purchase of 90 square meters or less part of the subsidy of 800 yuan per square meter. Moreover, in terms of credit policy, continued easing is still necessary. Zhang Dawei said that from the end of November 2014, the current round of interest rate cuts, six rate cuts in accordance with the benchmark interest rate, million 20 years of interest reduction of up to 2257 million. The down payment for non-restricted cities was previously reduced to 25%, and is expected to continue to adjust and decrease in the future.