Recently, the Housing Provident Fund Management Center of Meizhou City, Guangdong Province issued an announcement saying that the housing provident fund can be withdrawn to pay the down payment for the purchase of a house.
The announcement shows that employees and their spouses in Meizhou City purchased commercial housing (or second-hand housing) within the city’s administrative area, and signed a house purchase contract with a real estate company (or went through the real estate certificate transfer procedures with the seller), but the down payment has not been paid in full. If the payment is made, the provident fund can be withdrawn as the down payment.
At the same time, the announcement clarified the withdrawal amount. Under the premise of not applying for a personal housing provident fund loan, the housing provident fund account balance of the house buyer and his spouse can be withdrawn at one time (retaining more than ten yuan) to pay the down payment for the purchase of a house. The total withdrawal amount shall not exceed the purchase price of the house. The amount of down payment agreed upon in the contract.
Industry insiders pointed out that this round of adjustment started first from the adjustment of the provident fund policy, which has become an important means of policy adjustment since the beginning of this year. Increasing the provident fund loan amount, reducing the provident fund down payment ratio, and directly allowing the provident fund to be withdrawn as a down payment means that the policy is gradually loosened, and for home buyers, the support is gradually increasing.
Meizhou is not the first city to introduce relevant policies. According to the incomplete statistics of 36氪, in the first half of this year, more than 20 cities including Qingdao, Fuzhou, Huizhou, Chizhou, Zhuhai, Chaozhou, Shanwei, Shenyang, Mianyang, Zhangzhou, Nanping, Meishan proposed withdrawable housing provident fund as a down payment Provisions.
36Kr found that the main form is that the balance of provident fund is used to pay the down payment for buying a house in order to reduce the pressure on funds. Direct pickup is available in most cities, with slightly different regulations for individual cities.
For example, Meishan supports families with three children to withdraw the housing provident fund that is not included in the calculation of the loan amount for the down payment for the purchase of a house. Zhuhai stipulates that 90% of the balance of the provident fund account can be withdrawn for the down payment, and Hainan Province stipulates that the spouse and immediate family provident fund can be used to pay the down payment.
Chen Xiao, a senior analyst at Zhuge Housing Data Research Center, believes that the policy appropriately reduces the cost of home buyers, and at the same time, it also more effectively plays the role of housing provident fund in supporting home buyers, boosting home buyers’ sentiment.
However, Chen Xiao further pointed out that the cities that introduced this policy are mainly third- and fourth-tier cities, and in fact, the boosting effect on the market is limited. For example, Dazhou issued a personal housing provident fund of 89.39 million yuan in May, down 27% month-on-month, and the personal loan rate was running at a low 69.33%.
According to CRIC monitoring data, the real estate market continued to bottom out in September. Among them, first-tier cities are more resilient, and the transaction area of new houses in second- and third-tier cities decreased by 8% month-on-month and 35% year-on-year. Wang Zhengrong, a researcher at the Evaluation Research Center of China Real Estate Research Association, pointed out that for weak second-tier and third- and fourth-tier cities, the pressure on the property market is greater, and the demand for stabilizing the property market is more urgent. It is expected that local governments will further optimize real estate policies.
Zheshang Securities Research Report pointed out that there is still room for relaxation in this round of policy adjustments, such as interest rate cuts, RRR cuts, provident fund loan interest rates, and second-home interest rates. At the same time, the research report pointed out that although there are many policies that can be relaxed, policies related to reducing the cost of purchasing houses have different effects on the demand boost. From the horizontal comparison of the change in the proportion of monthly household income in monthly household income, a 1 percentage point reduction in mortgage interest rates has the greatest impact on the reduction in the proportion of monthly mortgage payment in household monthly income.
Author|Wang Lu
media coverage
36Kr
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