Banks Still Hiking Rate, Homesellers Not Getting Proceeds

Here's an anecdote about a woman approved for a mortgage in February, but the bank still hasn't released the funds for the home she has purchased.

"My loan was approved in February, but the home seller still hasn't received any funds." Li Li admitted that she was lucky, she enjoyed the 15% discount rate concessions.
China Securities News reporter recently in Beijing, Shenzhen, Nanchang and other places to understand that most buyers are not so lucky Li Li, the first set of mortgage rates have been adjusted from 9 fold to 95 fold, and then to the current benchmark interest rate or even floating higher.

...Bank staff did not explain the reasons for the second suite lending more than the first suite, analysts believe that the two sets of mortgage interest rates rose 10% -30%, commercial banks in the case of tight credit line tilt is reasonable in.

Reporters learned that the current ICBC, Bank of China, Bank of China, China Construction Bank and Bank of China and other five sets of two sets of mortgage interest rates rose to 1.2 times, Bank of Beijing, China Merchants Bank, CITIC and other banks two suites rate also rose to 1.2 times, Minsheng Bank Is up to 1.3 times. Previously, most of the bank two suites lending rates were floating 10%.

The wait-and-see attitude among buyers is strong now and transaction volume is sliding as these policy effects hit the market.

iFeng: 楼市观望情绪浓厚 专家:拐点难现交易仍有反弹可能

Fan Gang discusses the real estate market and government policy:

Economic Observer reported that on June 13, Beijing rainy rain, China Economic System Reform Research Association, vice president of the National Economic Research Institute Fan Gang appeared in the fourteenth session of the 2017 China blue-chip real estate annual meeting. Fan Gang's speech is "China's urbanization process and the development of the real estate market." He bluntly, overcapacity is not cleared, the debt is not cleared, private enterprises to invest hard, so the Chinese economy, his personal mood is not so optimistic.

Of course, in the overall tone, he is not a complete pessimist, specifically in the real estate field, he felt that China's high growth story is still not over, the real estate market took a detour, the potential is still huge, in the speech, he passed Five aspects of analysis, how the normal growth of real estate.

First, the demand, the lack of real estate tax such as automatic stabilizer, if the demand side with automatic stabilizer, you do not need to buy, no need to take administrative measures, tax and leverage can automatically stabilize the role of real estate.

Second, the supply, the biggest problem is the urbanization strategy out of the question, before the urbanization policy, is now urbanization policy to encourage the development of small towns, limiting the development of large cities, accordingly, small cities for the land to use, But for the past 30 years, the vast majority of the population moved to big cities.

The basic logic of urbanization is economic efficiency, economies of scale, aggregation benefits, because the big cities can save resources, can create conditions for more enterprises to develop. The rhythm of the land did not keep up with the pattern of urban development of the population, which is a problem, of course, the Ministry of Homeland declared, reduced or stopped the population to the small cities for the population, to increase the supply of large cities, which is the beginning of the signs of adjustment.

Third, to solve the problem of real estate or the need to solve the strategic and institutional issues, rather than simply put the real estate problem in the currency problem, the money did not go to the stock market, said to the real estate, this time how to the big city , Not to small and medium cities to go? Have to explain it, the money is more than a paradoxical argument.

Fourth, China's economic problems are overcapacity, inventory and other structural problems, structural reform and enterprise reform, the economic cycle and so on. He real estate as a case, the real estate surplus will cause a bubble, or even collapse, but the specific real estate market in China, even the down payment can be a loan.

Fan Gang believes that in this emergency, the Government to take measures on the back to step up to do some correct things to change some of the past strategy, past policies, past practice, so that the real estate market can be stable and healthy development, and then gradually To withdraw from the administrative means to withdraw from the money to buy a house so that people engage in divorce to buy a house of administrative measures.


Fifth, the relationship between real estate and land prices. Why is your house expensive? Because the land is expensive, the land is shot out, because it is expected that the future price of this place higher than the current housing prices. Is expected to lead to price increases, the price of land is the derivative price of real estate prices. If the government no matter, let the market continue to heat, the price will rise for two or three years, laissez-faire real estate, local government land prices sold high, more money and certainly happy, real estate business is also happy, investors are happy, finally There is an investment opportunity. and then? Two or three years later? That is what is called a hard landing, what is the collapse, what is the crisis ah

Finally, he believes that the fundamental solution to the real estate problem still need to solve the strategic and institutional problems, the problem of China's real estate, and China's economic problems are consistent, are overcapacity, inventory and other structural problems, structural reform and Enterprise reform, the economic cycle and so on.

Facing the trend of China's economy, he admitted that "this round of the problem has not cleared, but also clean up for some time, how long I do not know, but learn from the last time I am afraid for some time now think about how much excess capacity Clean up, how much debt is not cleared, pressing private enterprises is difficult to rise investment, the economy is difficult to return to normal growth, coupled with the gradual recovery of the international economy, is probably such a basic judgment, our L-shaped in the end, in the Wandering, we use the historical perspective, before and after the look of China 's economy.

iFeng: 樊纲五问中国房地产：高房价的根源是什么？