Housing Enterprises Financing Blowout Intensify "Return Blood" To Patch Up

Along with the advent of summer, housing enterprises financing continues to heat up. In May, domestic financing blowout, and 50 days of overseas financing were also frozen, and four housing companies such as Biguiyuan took the lead in issuing bonds abroad.

In May 20th, Biguiyuan issued a 544 million dollar senior note with a coupon rate of only 5.40%. Turning around, Biguiyuan took three commercial and residential land in Yancheng, Nantong and Yantian, with a premium rate of 51.93%-125%.

By the end of May, most developers had stepped out of the tension under the outbreak, discounting the discount and making efforts to take the place. Loose financing gave them strong support.

No one would have thought that the past May has become a month of high price in the past two years. The total volume of the plot exceeding 5 billion yuan was 9, accounting for 43% of the 5 billion plots that were born this year. From the city, Shenzhen, Guangzhou, Beijing, Xiamen and other cities hold high heat.

The center predicted that considering the relatively loose credit policy and the supply of high quality plots, the current market fever will continue in the short term.

Relaxation after stress

During the epidemic period, to provide support to enterprises, the mobility of countries was greatly relaxed, and real estate also benefited. The financing window of Housing enterprises opened, and they seized opportunities and issued bonds to return blood.

After more than three years, housing companies once again tasted the dividends of domestic financing. Central Plains real estate data show that as of May 27th, the domestic debt issuance of Housing enterprises has reached 307 billion 600 million yuan, more than half of last year. Among them, the issuance of single month debt in April surged to 97 billion 100 million yuan, a record high in recent months, and is still running high in May. Overall, this year's housing financing environment is heating up, up nearly 25% over the same period last year.

In addition to the increase in the amount of financing, coupon interest rate has also continued to decline, especially the high quality scale housing prices have entered the seller's market, many times 2 bond interest rate bonds.

In May, Rong Chong issued a 3 billion 300 million yuan, coupon rate of 5.60% of corporate bonds. Jinke issues 1 billion 700 million and the lowest interest rate is 5% of corporate bonds. And Vanke 2 billion 500 million has a low corporate bond interest rate of 2.56%. Evergrande, poly, Longhu, Xu Hui and other housing enterprises coupon interest rates have declined.

58 Zhang Bo, chief analyst of Anju Real Estate Research Institute, said: "the blowout of domestic financing is directly related to the recent big relaxation of liquidity, and the cost of financing in the market is also gradually decreasing. At least, compared with last year, there has been a more obvious improvement, especially in the financing threshold of some of the head housing companies."

The ease of domestic financing has led to more than 50 consecutive days of unchecked foreign loans. The 95 typical housing companies monitored by CRIC did not have any offshore dollar bonds issued in April. This is the first time since 2017 that the housing enterprises had been issuing overseas debt.

In May 6th, in the era of TOP50 housing prices, China appeared in the offshore bond market, issuing a foreign debt of 200 million US dollars and 6% interest rates, breaking the record.

Then Zheng Rong issued $200 million and 8.35% interest rate offshore debt. Biguiyuan also joined the overseas bond issuing force, issuing $544 million and a coupon interest rate of 5.4% offshore debt, while the offshore debt with a high selling rate of $150 million and a 13% interest rate will be used to "borrow new and return to old".

The cost of financing in Biguiyuan, Zheng Rong and times China has declined compared with the beginning of the year. Bloomberg statistics show that among the four US dollar debt, 1/3 buyers are private banks serving the rich in the mainland and Hongkong.

CITIC Securities predicts that the interest rate of China's housing enterprises' external debt will have a downward trend: "globally, with high liquidity and low return on real economy, high yield assets are scarce. China's stable housing price, stable operation of development enterprises, and limited supply of foreign bonds all make overseas real estate debt in short supply, and the issue rate is low.

When you have money, you go to "grab the land"?

A relaxed domestic and foreign financing environment helps developers to get through the most difficult times. With the money left, they began to focus on the market.

Central Plains real estate data show that as of May 29th, the national land market continued to heat up, especially in Beijing, Shanghai and Hangzhou. The 50 major cities in the country sold 1 trillion and 600 billion yuan, up 12% compared with the same period last year, and 27 cities sold more than 20 billion yuan. High prices continued to occur, with more than 2 billion yuan in 44 plots, with a premium of 75%, after which the premium was less than half.

In May, there were third "billion plots" this year. In May 15th, long Guang won the Qianhai hot spot with a total price of 11 billion 597 million yuan and a floor price of 87 thousand and 400 per square meter. After five years, Shenzhen ushered in the new unit price.

4-5 months, housing companies take a very high enthusiasm, always take cautious Longhu and so on. According to Kerri data, the high heat land (premium rate of more than 30%, the maximum price, the total transaction price of more than 1 billion yuan and three conditions in line with one of the land) competitive enterprises, gold to 10 lead, Hengda won 9. Vanke, Xincheng, Xu Hui, Jian FA, Zhonghai, Zhongnan, chukai, Longhu, and Chong Chuang are not less than 5.

From the area of housing prices, Hengda won 13 million 334 thousand square meters, leading second of the country garden about 8000000 square meters. In addition, greenbelt, new town, Longhu and Pauli all take more than 2 million square meters.

"Although the impact of the epidemic on Housing enterprises' capital chain is large, the difficulty of domestic financing has been reduced, and some enterprises have once again raised their enthusiasm for taking the initiative." Central Plains real estate chief analyst Zhang Dawei said.

In Zhang Dawei's view, housing prices are hot, in addition to the loose financing factor, but also because housing prices expect the property market will soon stabilize, in pursuit of market size, so they advance layout. At the same time, local governments are generous in releasing high-quality plots.