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Policies have given openings, and many possibilities and opportunities have been created.
On August 27, Shanghai issued a document to optimize the supply structure of new commercial housing land, and since the beginning of this year, many places have issued new regulations on capacity calculation, in order to encourage the development and construction of high-quality residential buildings. What are the focus of these rule changes? And what impact will it have on the real estate sector? What supporting policies need to be optimized?
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Shanghai and Shenzhen have cancelled 70/90, and new regulations have been introduced in various places: relaxing the proportion of non-capacity counting, developing fourth-generation residences, and limiting heights
Since the beginning of this year, in order to meet the diverse improvement needs of the masses and support the development and construction of high-quality residential buildings, a series of new regulations have been issued in various places, including the abolition of the 70/90 unit type limit, the optimization of the floor area ratio calculation rules, and the encouragement of the development of fourth-generation space buildings. Specifically, it can be divided into the following aspects:
First, Shanghai, Shenzhen and other cities have relaxed the 70/90 household ratio limit. The "70/90" policy is a policy issued by the Ministry of Construction in 2006 to regulate the housing structure, stipulating that the proportion of housing area below 90 square meters must reach more than 70% of the total area of development and construction. In March this year, Shenzhen announced the abolition of the 70/90 policy, which had been in place for 18 years. On August 27, Shanghai officially issued a document to optimize the supply structure of new commercial housing land sets, adjusting the upper limit of multi-storey, small high-rise, and high-rise small and medium-sized residential areas to 100 square meters, 110 square meters, and 120 square meters respectively (90, 95, and 100 square meters in previous years), and the minimum requirements for the proportion of small and medium-sized sets were adjusted to 70% between the middle and outer rings, 60% in the middle ring and new cities and key areas of north-south transformation, and 50% outside the outer ring (60%-80% in previous years).
Second, the shared area will be reduced, and public open spaces such as public service facilities, overhead floors, and sunken spaces will no longer be counted. For example, Shenzhen lists public spaces such as computer rooms and refuge floors as "non-accommodating areas". Nanjing stipulates that the sum of the horizontal projection area of the equipment room and the elevator room on the floor that protrudes from the roof shall not exceed one-eighth of the roof area, which shall not be included in the floor area ratio. Zhuhai stipulates that the first floor of a residential building not exceeding 3.9 meters can be used as a garage, and the building area of the capacity is not calculated.
Third, relax the proportion of semi-open space and half capacity, and adjust the constraints such as balcony depth. The proportion of semi-open and semi-calculated space such as Guangzhou balcony is relaxed from 15% to 20%, and a main landscape balcony that meets the continuous opening of not less than 40% is allowed to be set up without limiting the depth. Balconies with two or more floors and a full height in Guiyang are not included in the floor area ratio. Huaihua enclosed balcony can also be included in the floor area ratio and construction area according to 1/2 of the horizontal projection area.
Fourth, the land supply restriction of 1.0 plot ratio will be lifted. For example, Suzhou has made it clear that in areas that do not have public transportation conditions in the suburbs of the city but have better conditions such as landscape and location, as well as historical urban areas determined by land and spatial planning, the implementation of the land supply standard of no less than 1.0 plot ratio shall be stopped.
Fifth, relax the requirements for building density, high and low allocation, and other indicators. Guiyang stipulates that in areas with better transportation and supporting conditions, the building density of residential projects can be higher than 43%. Huaihua allows the construction density, greening rate, and building height to be adjusted within 5% of the original index under the premise of meeting the requirements of relevant national regulations and obtaining planning approval.
Sixth, relax the floor height limit. For residential buildings with an internal floor area of more than 144 square meters in Guangzhou, the ceiling height is relaxed from 6 meters to 7.2 meters. Nanjing stipulates that residential living rooms and restaurants with a floor area of more than 120 square meters can be appropriately raised in height. The standard floor height of residential buildings in Ganzhou has been adjusted from 3.2 meters to 3.6 meters.
Seventh, optimize the control requirements of bay windows and equipment platforms. Foshan has cancelled the restrictions on the depth and area of a single balcony, and cancelled the requirement that the height difference between the bay window sill and the ground is less than 0.45 meters. Shenzhen increased the size of the bay window, and the depth of the bay window increased from 0.6 meters to 0.8 meters. The width of the Huaihua bay window can be the same width as the room, the overhang width shall not exceed 0.8 meters, and the equipment platform shall not be greater than 4.0 square meters per household, which shall not be included in the floor area ratio and construction area.
Eighth, the introduction of height restrictions to control the development of super high-rise residential buildings. Shenzhen stipulates that the building height of residential buildings and dormitories should not be greater than 150 meters. Kunming stipulates that the height limit of new urban residential buildings is 80 meters, and the height limit of commercial buildings is 150 meters, and the height limit of buildings in five sub-districts is formulated: 27 meters, 36 meters, 54 meters, 54 meters, and 80 meters. Jiangsu Province issued a draft for comments on the planning and construction control of high-rise buildings, clarifying that all localities are generally not allowed to build new residential buildings of more than 100 meters, and cities with a permanent population of less than 1 million in urban areas strictly control the construction of new residential buildings of more than 80 meters.
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The new regulations increase the housing rate and reduce the cost of buying a house in disguise, and the new housing products will become larger and more improved in the future
What impact will a series of new regulations have on the real estate market? There are three main aspects:
For new housing products, the trend of large-scale area and product improvement will be more obvious in the future. The common direction of the above-mentioned new urban capacity planning regulations is to encourage real estate enterprises to develop high-quality residential products, such as larger balconies, deeper bay windows, higher floor heights, and the development of fourth-generation space residences with vertical greening, with a view to improving the functionality and comfort of living. Controlling the development of high-rise residential buildings and relaxing the supply of low-plot ratio products also means that the market share of pure rigid demand products will continue to shrink, and low-density and large-scale improved products will become the leading transaction in the new housing market.
For consumers, the new rules will help increase the rate of home ownership, which is equivalent to reducing the cost of buying a house in disguise. By listing the public open space as not counting, the shared area will be reduced, and the proportion of semi-open space such as balconies will be relaxed, which means that buyers can get more "free area", and the two phases will be superimposed, and the future 100% or even 120% of the housing rate will be possible, compared with the current general 8 percent of the housing rate will be significantly improved, for buyers, the purchase of the same suite area only needs to pay less total price, and the cost of buying a house and the threshold will be reduced accordingly.
For the industry, the upgrading of commercial housing and widening the gap with affordable housing is conducive to the establishment of a dual-track supply system. After the upgrading of commercial housing products, the differentiation between them and affordable housing will be further expanded, so that commercial housing can return to commodity attributes, product supply and price are determined by the market, and the affordable housing system is used to meet the basic housing needs of the working class, led by the government, and the price and operation management are strictly controlled, so that the dual-track housing supply system of "improving the market and just needing security" will gradually form and improve.
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It is recommended to cooperate with the abolition of price limits, optimize the land supply mechanism, and tilt the financing, pre-sale, and provident fund policies towards high-quality projects
In order to improve the quality of housing, in addition to the above-mentioned planning control adjustments, what other supporting policies need to be optimized?
The first is to gradually abolish the price limit policy, so that commercial housing can return to the attributes of commodities, and the market-led price determination mechanism. The price limit mechanism is a product of regulation and control during the overheated period of the real estate market, which not only restricts the increase in housing prices, but also brings the arbitrage space of first-hand and second-hand upside down, and gives rise to moral hazard such as developers lowering standards and reducing allocation. On the basis of the establishment of the dual-track supply system, the land for affordable housing is obtained from the allocation, and the cost and price are generally controllable, so the rise in housing prices can be effectively controlled in the field of commercial housing, which also makes it possible to cancel the price limit policy. Since the beginning of this year, 19 cities have loosened the price limit, of which Shenyang, Zhengzhou, Lanzhou and other cities have made it clear that they will no longer guide the sales price of newly built commercial housing, and the real estate enterprises will set their own prices for sales, Zhuhai and other cities will shorten the price record management, Huangshan and other cities will relax the lower limit of the sales price of the end plate, and Wuhu and other places will cancel the restrictions on floor price differences. However, as of now, Beijing, Shanghai, Hangzhou, Chengdu and other cities are still implementing a price filing review system to limit the upper limit of the selling price of new houses, and cities such as Yueyang, Tangshan, and Zhuzhou issued a fall limit order in 2022, clarifying that the sales price of new houses shall not be lower than 85%-90% of the record price, which has not been explicitly canceled.
The second is to optimize the land supply structure and compete for quality in the transfer of high-quality land plots. On the one hand, in line with the adjustment of the market structure, to increase the proportion of land supply in the core area, on the other hand, for high-quality land can be increased in the transfer of high-quality construction requirements, such as Shanghai, will be in the fifth batch of residential land transfer this year in the market heat of the land plot to implement "double high and double competition", in addition to the original green buildings, ultra-low energy buildings and other high-quality construction indicators, the addition of "competition decoration standards", "competition for public facilities and open space", "competition for free transfer of talent housing" three indicators, Encourage market entities to build high-quality housing.
The third is to support the projects under construction to adapt to market demand and adjust the planning and design scheme. On the premise of not changing the nature of land use and not increasing the floor area ratio, support the application for optimizing and adjusting the architectural design scheme of commercial housing under construction, and make adjustments to the housing units that do not meet the market demand.
In addition, for high-quality residential projects, policy preferences can be given in terms of financing, pre-sale permits, pre-sale fund supervision, and provident fund loans. For example, the maximum loan amount of the provident fund for improved products with a high total price of large units will be moderately raised, commercial banks will be guided to give preferential policy support in terms of credit approval, interest rate pricing and loan term for real estate development loans, and administrative approval procedures such as construction permits will be handled in stages, and the requirements for the approval of high-quality projects will be relaxed by category. (Source: CRC Research Center)