Detailed Rules For The Implementation Of Rebuilding Existing Housing Into Rental Housing In Nanjing

Recently, eggshell apartment, the largest long-term rental apartment brand in China, is in deep liquidity crisis. On the one hand, there are frequent explosions of long-term apartments; on the other hand, China actively promotes the long-term mechanism of "simultaneous development of rent and sale". In this context, on November 18, Nanjing Municipal Commission of urban and rural development, Nanjing Municipal Bureau of planning and natural resources, and Nanjing Municipal Bureau of housing security and real estate jointly drafted the implementation rules for the transformation of existing houses into rental housing in Nanjing (Trial Implementation) (hereinafter referred to as the "detailed rules"), which is regarded as continuing to implement the "rent and purchase simultaneously", offering a combination of regulation and control.

"Detailed rules" will further standardize the Nanjing stock housing into rental housing processing process, strengthen construction management. According to the information, the detailed rules are applicable to commercial, R & D, office, hotel (hotel) and factory buildings which have been built and have a certain scale in Nanjing. The reconstruction project should take the whole building, the whole unit and the whole floor (with independent traffic space) as the basic reconstruction unit.

A local real estate enterprise in Nanjing disclosed that as one of the pilot cities of the rental market, Nanjing has introduced this policy mainly in response to the national policy of simultaneous rent and sale. Secondly, the stock of office business in Nanjing in recent years is relatively large, and the removal is relatively slow. This policy is also conducive to rationalizing the allocation of inventory and activating the idle social assets.

A scientific researcher of a real estate enterprise deeply engaged in the Nanjing market believes that the orientation of the full supply of rental housing and the policy of attracting talents are consistent. This can be understood from the side, is a supplement to the rental housing, but also a kind of inhibition to the rise of house prices.

Control combination boxing

At present, many analysts in China have issued relevant policies. On the whole, this is an important measure under the long-term mechanism framework of "developing rent and sale simultaneously". On the one hand, the introduction of Nanjing policy can be said to be a combination of the government's leasing market and stock market. For the rental market, the original housing resources are mainly rental housing and second-hand housing, but with the commercial and industrial housing can be converted into rental housing, the number of rental housing will be greatly increased, and the rental housing will be raised through multiple channels to provide diversified housing supply for the rental market. At the same time, in view of the current long-term apartment market competition for housing resources, resulting in "high charge and low rent" and "rent loan" and other phenomena, expanding the supply of housing can potentially, long-term and effectively affect the stable and healthy development of the rental market. In addition, the formal intervention of government policies will, to a certain extent, crack down on the chaos of illegal group rental housing and "non housing change", standardize the market operation, and maintain the healthy and steady development of the market. For the stock market, most of the urban commercial and industrial buildings have excessive phenomenon. Through the transformation of the commercial and industrial buildings into rental housing, the existing stock can be effectively realized and the urban operation efficiency can be improved.

After the introduction of the new policy in Nanjing, the reporter interviewed some Nanjing real estate enterprises and learned that the policy has little direct impact on the developers in Nanjing. Most of the company's current residential business is the absolute main force, office business projects are very few. Many real estate enterprises are carrying out commercial operation and long-term rental apartment operation and service, which are parallel to the real estate independent company specialized operation.

A real estate practitioner believes that renting and buying are not the same but the consumption behavior in different stages of life. According to a report on China's youth housing consumption trend 2020 released by chain house, it is still difficult for young people to buy a home in Beijing, Shanghai and Shenzhen. In 2019, the average age of young buyers in Beijing, Shanghai and Shenzhen is over 30 years old. In the second tier cities, the living costs of Nanjing and Hangzhou are relatively higher, even higher than those of Guangzhou in the first tier cities. Leasing is still the main living mode for many young people. The proportion of "after 85" who choose whole rent is 7.5% higher than that of "after 00", and the rental cycle is also longer.

Strong supervision of leasing

In 2017, the Ministry of housing and urban rural development, together with the national development and Reform Commission, the Ministry of public security, the Ministry of finance, the Ministry of land and resources, the people's Bank of China, the State Administration of Taxation, the State Administration of industry and commerce, and the China Securities Regulatory Commission jointly issued the notice on accelerating the development of housing rental market in large and medium-sized cities with net population inflow, proposing to speed up the housing rental market from the perspectives of financing, land supply and revitalizing rental housing 12 cities were selected as the first batch of pilot housing rental units, including Guangzhou, Shenzhen, Nanjing, Hangzhou, Xiamen, Wuhan, Chengdu, Shenyang, Hefei, Zhengzhou, Foshan, Zhaoqing, etc. Then in August of the same year, the Ministry of land and resources, the Ministry of housing and urban rural development issued the "pilot scheme for the construction of rental housing using collective construction land", which identified 13 cities, including Beijing, Shanghai, Shenyang, Nanjing, Hangzhou, Hefei, Xiamen, Zhengzhou, Wuhan, Guangzhou, Foshan, Zhaoqing and Chengdu, as the first batch of pilot cities to build rental housing with collective land. The pilot cities of Fuzhou, Guiyang and Haikou will be expanded to 18 pilot cities in 2019.

In September 2020, China's first administrative regulation, housing leasing regulations (Draft), began to solicit public opinions.

In the view of some people in the industry, the introduction of the new policy in Nanjing is not closely related to the continuous explosion of scattered long-term rental apartments. The emergence and expansion of long-term apartments also conform to the direction of both rent and sale. Before the explosion of these long-term apartments, the government was also actively encouraging and promoting the development of such enterprises, but some enterprises did not follow the normal operation mode. Secondly, Nanjing is a city where colleges and universities are very concentrated. Before the appearance of long-term apartments, the market capacity is sufficient. Nanjing also provides housing subsidies for graduates, which to a certain extent also eases the living pressure of fresh students.

Shanghai, Hefei and other cities have issued similar policies. In order to promote the development of the leasing industry, in August this year, Hefei issued the notice of Hefei housing security and real estate administration bureau, Hefei natural resources and Planning Bureau and Hefei urban and Rural Development Bureau on the work of transforming non residential housing into rental housing (Draft for comments) (hereinafter referred to as the "draft for comments"), which clearly states that within the urban area of Hefei, the real estate ownership certificate or other contracts If the legal ownership proves that the existing idle houses used for commercial (Office), industrial (workshop, warehouse), scientific research and education, and there is no collection plan in the near future, they can be converted into rental housing.

More support for the leasing industry in Shanghai. In February 2017, the general office of the Shanghai Municipal People's government issued a notice on extending the "trial opinions on encouraging various social institutions to act as agents for rental social idle housing", which is valid until February 28, 2019.

Shanghai supports the "n + 1" of safety and compliance, but takes a severe attack on the centralized apartments that are not changed to live in. At the beginning of 2017, Baoshan District Planning and Land Management Bureau and other departments jointly issued a notice on the implementation opinions of "non residential change" disposal in Baoshan District (Trial Implementation) (hereinafter referred to as "implementation opinions"), which will be implemented on May 1, 2017 for a trial period of 2 years.

On April 21, 2017, Shanghai issued several regulations on strengthening the management of the transfer of business land in the city. It is stipulated in the document that the transfer contract of office land shall specify that the office land shall not be built into apartment type office, and that apartment hotel shall not be built without agreement in the transfer contract of commercial land; the saleable part of office and business shall be sold by floor as a unit. The self owned area of commercial, office and commercial residential buildings shall not be transferred as a whole or separately.

In this way, a large number of apartment practitioners who entered the centralized apartment field in Shanghai in the early stage will face great pressure. Many of them use non residential houses such as idle warehouses and workshops to reconstruct apartments, and the investment in centralized apartment projects is generally relatively large. This also reminds the latecomers that the trillions level apartment industry has been paid more and more attention by the government, and there are more and more policies and rules. Only by operating legally and in compliance can we win long-term development.

There is also a new policy in Nanjing that indicates the government's strong supervision over the leasing industry: "after the operation of the reconstruction project, the housing lease contracts concluded by the housing rental enterprises should be signed online through the municipal housing rental service supervision platform. The model text of lease contract shall be used for online signing and filing, and a special rent account shall be set up in a commercial bank. "

How to retain people by robbing people?

In 2017, the introduction of the long-term mechanism of "simultaneous development of rent and sale" can set the tone for urban regulation and provide more operation space for the city to retain people.

Many cities in the Yangtze River Delta are competing for talents. According to incomplete statistics, since the beginning of 2017, about 60 cities, including the first, second, third and fourth tier cities, have successively launched a "people grabbing war". In 2019, all localities will attract talents to join in by implementing preferential policies such as house purchase subsidies and settlement, reaching a peak.

In the first quarter of 2019, more than 20 cities, including Nanjing, Beijing, Dalian, Xi'an, Changzhou, Suzhou, Wuxi, Guangzhou, Haikou, Xiangyang, Zhenjiang and Shijiazhuang, will join the talent competition, and the Yangtze River Delta region will be the most "participating" cities. In 2020, the war of robbing people will be upgraded. In February, Hangzhou issued the supplementary opinions on the implementation of "37 talent ecology".

Nanjing, as one of the pilot cities of both renting and selling, has updated its talent policy at least twice since 2019. It has successively introduced preferential policies, such as the extension of the talent settlement policy to February 2020, and a 30% discount for Undergraduates' housing purchase.

In 2020, Nanjing will once again relax the entry threshold: graduates and above, undergraduates under 45 years old (including returned students and part-time graduate students) can settle down with academic certificates; those with college education under 40 years old can settle down in Nanjing after employment and insurance for half a year.

On the one hand, it is actively introducing talents, on the other hand, the housing price continues to rise. According to the National Bureau of statistics, the price of new houses in Nanjing rose 0.4% month on month in October, up 4.5% year-on-year; the price of second-hand houses rose by 0.3% month on month, 3.8% year-on-year.

In this regard, Chen Shu believes that increasing the supply source of rental housing can alleviate the contradiction between housing supply and demand, help to improve the housing supply structure, and play a positive role in revitalizing the existing assets. However, it is worth noting that in order to avoid market chaos caused by the new deal, the government should keep up with the relevant regulatory measures, and at the same time, it should also give certain financial support policies to actively encourage enterprises to carry out relevant business steadily.