After the Crackdown: Beijing Commercial Housing Market Grinds to a Halt
Beijing has been cracking down on the real estate sector, using any relevant law and any government power to restrict the industry. See Beijing Metes Out More Punishment for Real Estate Violations and Five Branches of Beijing Muni Govt Ramp Up Real Estate Controls.
Following the latest crackdown on commercial property, realtors have pulled advertising and banks have halted lending. These are ostensibly commercial or dual use properties, but sold to individual buyers.
Commercial housing” may face resale difficulties , buyers are afraid of “getting their hands smashed”
In Yan Yuejin view, this move on the Beijing business class project to implement a strict purchase practices. “Second – hand housing business to allow the sale of property to individuals, in fact, to prevent second – hand housing land east of all kinds of controversy set”, set the two conditions for the subscription, so that this property back to the residential properties.
“As a result of the conditions on purchases of existing commercial projects, the basic and ordinary residential, such properties existing home transactions is bound to face the risk of backing out.” Yan Yue Jin that the future business class project prices or decline.
It is based on this concern, many of the completion of business projects signed by the project buyers eager to “go back”. A few days ago to pay the first payment, set in Beijing Daxing District, a set of “commercial housing,” Ms. Cui, these two days but busy consulting and check out the process, “the future business projects do nothing market, and now do not refund Room, afraid to hit in their own hands.
New projects can not be sold to individuals, how will it impact the commercial market?
According to Centaline real estate chief analyst Zhang Dawei statistics, 90% of the Beijing commercial properties are sold to individuals, and now the policy adjustment, “rules of the game” completely changed.
Zhang Dawei said that this policy will directly affect at least 600,000 units of commercial properties, is expected turnover will fall, prices will be lower. “Beijing is the first to regulate the commercial market, afterwards other cities are likely to open a wave of comprehensive closure of business projects, since residential purchase restriction led to investment in commercial property, could face a huge risk.
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New commercial plots can now only be sold to enterprises, public entities and social organizations, said a statement issued by Beijing’s banking, industry and commerce, housing and urban planning authorities.
The statement posted on the Beijing Municipal Commission of Housing and Urban Rural Development website on Sunday said that personal loans for buying commercial property have also been suspended.
…Only second-hand commercial property can be sold to individuals, who have to prove income tax payments for five consecutive years and hold no property, the regulators said in their statement.
The smallest unit available should be a minimum of 500 square meters and real estate agencies that falsely advertise commercial plots as housing will be punished.