Shanghai strictly regulates the real estate market, which behaviors are not working？

CCTV News:On the evening of January 21st, eight units including Shanghai Housing and Urban-Rural Construction Management Committee, Shanghai Housing Management Bureau and Shanghai Planning and Resources Bureau jointly issued the Opinions on Promoting the Stable and Healthy Development of the Real Estate Market in this Municipality (hereinafter referred to as "Opinions"). The opinion contains ten measures, among which it is proposed that "if the husband and wife are divorced, if either party purchases commercial housing within three years from the date of divorce, the number of housing units owned by them shall be calculated according to the total number of families before divorce". The Opinions will be implemented as of January 22, 2021.

The policy is stricter.

Recently, there are signs of warming in the Shanghai property market. According to the National Bureau of Statistics, in December 2020, the price of new commercial housing in Shanghai rose by 0.2% month-on-month; The price of second-hand houses rose by 0.6% month-on-month. According to Anjuke data, the average price of second-hand houses in Shanghai in December 2020 was 52,530 yuan per square meter, and in January this year, the average price of second-hand houses was 52,684 yuan per square meter. The price of new houses in Shanghai is also increasing. In January 2021, the average price was 52,218 yuan per square meter, up 1.86% from the previous month.

In the face of rising housing prices, some people have tried to bypass the property purchase restriction policy through "fake divorce" to obtain the qualification of buying a house or reduce the down payment ratio of buying a house. In view of this "loophole", some cities have issued relevant policies in 2020. For example, in July 2020, seven departments in Nanjing jointly issued the "Notice on Promoting the Stable and Healthy Development of the Real Estate Market in Our City", which stated that "if the husband and wife are divorced, if either party purchases commercial housing within 2 years from the date of divorce, the number of housing units owned by them shall be calculated according to the total number of households before divorce." According to industry insiders, Shanghai’s move to strictly block "fake divorce" to buy a house will have a direct deterrent effect on those who want to obtain the qualification to buy a house and the first set of qualifications through "fake divorce". Some cities stipulate that the number of houses within two years of divorce is calculated according to the total number of houses before divorce, while Shanghai is upgraded to three years, which highlights the stricter policy.

Zhang Bo, dean of the branch of 58 Anjuke Real Estate Research Institute, said that the promulgation of the "Opinions" can be regarded as a rapid response to the recent irrational rise in the Shanghai property market. Some insiders also analyzed that if the irrational sentiment in the market has not been effectively alleviated after the implementation of the Opinions, it is expected that there will be continuous policy follow-up in the future.

Strictly regulate the real estate market

In addition to the provision that the number of houses within three years after divorce is calculated according to the total number of houses before divorce, in order to implement the national requirements on the regulation of the real estate market, the Opinions also made detailed provisions in other aspects.

The "Opinions" adjust the period of VAT exemption, emphasizing that the period of VAT exemption for individual housing sales will be increased from 2 years to 5 years. This also means that if an individual sells a non-ordinary house that has been purchased for more than five years (including five years), the value-added tax will be levied according to the difference between his sales income and the purchase price; Individuals who sell ordinary houses that have been purchased for more than 5 years (including 5 years) are exempt from value-added tax. This regulation or restriction of real estate speculation, raising the tax of transaction links can effectively reduce the new investment demand, but it will also limit and reduce the liquidity of second-hand housing accordingly.

In order to strictly manage the sales of commercial housing. The Opinions call for strict implementation of various management systems such as "one-price settlement" and "real-name registration system" for the sale of commercial housing. We will improve the system of notarization and lottery selection for newly-built commercial housing, and give priority to meeting the demand of self-occupied housing purchase for families without housing. Strengthen the supervision of pre-sale funds and protect the legitimate rights and interests of buyers. The requirement of "clear price at one price" in the Opinions can prevent real estate enterprises from charging illegal fees, such as renovation and parking spaces, and the requirement of "real-name registration system" can also effectively prevent some people from speculating and improperly transferring the qualification for purchasing houses in order to gain benefits.

In addition, the Opinions also require strict implementation of differentiated housing credit policies. We will manage the concentration of real estate loans, strengthen the prudent management of personal housing loans, guide commercial banks to strictly control the pace and growth rate of personal housing loans, and prevent sudden lending. Guide commercial banks to further strengthen the management of loan review, and strengthen the verification of the source of down payment funds and debt-to-income ratio of buyers. Strictly guard against the illegal inflow of funds such as credit loans, consumer loans and business loans into the real estate market.