【Policy News】
Ministry of Housing and Urban-Rural Development: Promote the acquisition of stock housing for affordable housing in cities above the county level
On June 20, the Ministry of Housing and Urban-Rural Development held a video conference on the acquisition of completed commercial housing for use as affordable housing. At the meeting, the Ministry of Housing and Urban-Rural Development made it clear that all localities should promote cities above the county level to vigorously, orderly and effectively carry out the acquisition of completed stock of commercial housing for affordable housing. According to the Ministry of Housing and Urban-Rural Development, cities and counties will make independent decisions and voluntarily participate in accordance with the real estate market situation in their respective regions, taking into account the actual demand for affordable housing, the inventory level of the commercial housing market and other factors, and in accordance with the idea of "government-led and market-oriented operation". It is necessary to insist on ordering according to demand, accurately find out the demand, carefully map out the base of the demand for affordable housing in the region and the stock of commercial housing that has been completed, reasonably determine the commercial housing that can be used as affordable housing, and lock in the demand for affordable housing in advance. The Ministry of Housing and Urban-Rural Development proposes that it is necessary to adhere to the standardized implementation, prevent all kinds of risks, and standardize the acquisition subject, acquisition process, placement and rent, and ensure that the acquired stock of commercial housing is suitable for size, price and location. It is necessary to adhere to the good use of financial support policies to achieve balanced funds and sustainable projects.
The Guangdong-Macao In-Depth Cooperation Zone in Hengqin, Zhuhai has completely lifted the restrictions on the purchase of commercial housing
On 20 June, the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, Zhuhai issued a notice on "Several Measures to Promote the Stable and Healthy Development of the Real Estate Market in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin". Cancel the restrictions on the number of years of commercial housing transfer in the cooperation zone (except for those with restrictions on property rights transfer) to support residents' rigid and improved housing needs; The time interval for adjusting the filing of commodity housing prices has been shortened from three months to one month.
【Market News】
LPR unchanged in June: 3.45% for 1-year and 3.95% for more than 5 years
On June 20, the People's Bank of China authorized the National Interbank Lending Center to announce that the loan market quotation rate (LPR) on June 20, 2024 will be 3.45% for 1-year LPR and 3.95% for LPR over 5 years, both unchanged.
In May, house prices in 70 cities showed a downward trend both month-on-month and year-on-year
On June 17, the National Bureau of Statistics released data showing that in May 2024, among the 70 large and medium-sized cities across the country, the sales prices of commercial housing showed a downward trend both month-on-month and year-on-year. Specific data show that the sales price of newly built commercial residential buildings in first-tier cities decreased by 0.3% month-on-month and 2.2% year-on-year; The sales price of newly built commercial residential buildings in second-tier cities decreased by 0.2% month-on-month and 1.9% year-on-year; The sales price of newly built commercial residential buildings in third-tier cities decreased by 0.1% month-on-month and 1.6% year-on-year.
From January to May, the sales of newly built commercial buildings were 3,566.5 billion yuan, down 27.9% year-on-year
On June 17, the National Bureau of Statistics released the basic situation of the national real estate market from January to May 2024. From January to May, the national real estate development investment was 4,063.2 billion yuan, a year-on-year decrease of 10.1% (calculated on a comparable basis); Among them, residential investment was 3,082.4 billion yuan, down by 10.6 percent. The sales area of newly built commercial buildings was 366.42 million square meters, a year-on-year decrease of 20.3%, of which the sales area of residential buildings decreased by 23.6%. The sales of newly built commercial buildings were 3,566.5 billion yuan, down by 27.9 percent, of which residential sales fell by 30.5 percent. The funds in place for real estate development enterprises were 4,257.1 billion yuan, down 24.3 percent year-on-year.
Three residential land transactions in Nanjing were sold at a premium of about 2.282 billion yuan
On June 19, Nanjing listed three residential land parcels, located in Qinhuai District, Jianye District and Lishui District. The total starting price of the three land parcels is 1.97 billion yuan, and the final transaction price is about 2.282 billion yuan. After 25 rounds of quotations, Zhongkun Real Estate won the plot of Confucius Temple Street in Qinhuai District, with a total transaction price of 460 million yuan, a premium rate of 20.42%, and a floor price of 35,084 yuan / square meter; After 47 rounds of quotations, Olympic Sports Construction won the land plot of Shuangzha Street in Jianye District with 1.74 billion yuan, with a premium rate of 15.23% and a floor price of 43,888 yuan / square meter; After 5 rounds of quotations, Yulin Real Estate won the land plot of Yongyang Street, Lishui District with 82 million yuan, with a premium rate of 5.13% and a floor price of 6,305 yuan / square meter.
Qingdao 2 residential land received 2.4 billion yuan, and the Laoshan plot set a new record for floor land price
On June 20, Qingdao, Shandong Province listed 2 cases of residential land. Among them, the high-profile No. 35 plot of Laoshan Wangjia Village went through 364 rounds of fierce bidding by three real estate companies, Hisense, China Shipping, and Haiye Yijia, and was finally won by Haiye Yijia at a total price of 1.887 billion, with a floor price of 39,516 yuan / square meter, and a premium rate of 37.2%, refreshing the record of Qingdao floor price. Another Baiyun Mountain plot in Chengyang District has a planned construction area of 102,500 square meters, which was won by Qingdao Yueming Real Estate at a reserve price of 513 million yuan, with a floor price of 5,007 yuan per square meter.
【Real Estate News】
Longfor Group held a general meeting of shareholders and maintained steady development in its operation and service business
On June 18, Longfor Group (00960. HK) convened a general meeting of shareholders. At the shareholders' meeting, the management of Longfor Group mentioned that "the market sentiment has shown certain positive feedback, and Longfor's sales in some cities such as Shanghai, Suzhou, and Shenzhen have indeed increased significantly." According to the data, from January to May 2024, Longfor Group achieved sales of 41.08 billion yuan. Since 2024, its operation and service business has maintained steady development. From January to May, the operating income was about 11.45 billion yuan (tax included), a year-on-year increase of about 10%, of which the operating income was about 6 billion yuan (tax included) and the service income was about 5.45 billion yuan (tax included).
Midea Real Estate plans to reorganize the housing development business internally and focus on the asset-light business
On June 23, Midea Real Estate (03990. HK) announced plans to carry out an internal restructuring of its real estate development and sales business (real estate development business). Midea Real Estate pointed out that the divestment of the real estate development business is mainly due to the financial situation in 2023, which cannot meet the requirements of the "three red lines". The divestiture of the asset-heavy property development business will inevitably reduce the size of the overall business, but shifting the focus to an asset-light model allows the Retain Group to leverage its expertise in the real estate industry to achieve higher margins and reduce its cyclical exposure to the real estate market.
Sunshine 100 received a winding-up petition
On June 20, Sunshine 100 China (02608. HK) announced that on June 18, 2024, Parson Shun (Hong Kong) Limited (the Petitioner) filed a winding-up petition (Petition) against the Company in the High Court of the Hong Kong Special Administrative Region (the High Court) for the Company's outstanding redemption price of US$50.4675 million due on August 11, 2021 and US$2.385 million per annum of the outstanding principal amount of US$45 million from August 11, 2021 to March 22, 2024. The Petition will be heard in the High Court at 10am on Wednesday, 28 August 2024. The petition was received by the Company on 19 June 2024. Sunshine 100 China said it would seek legal advice and take all necessary actions to protect its legal rights.
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