On June 4th, approved by Yichang Government, Yichang Municipal Housing Commission and Urban-Rural Development has issued Notice on Further Strengthening the Regulation and Control of the Real Estate Market (hereinafter referred to as the Notice), which will focus on “supply adjustment, steady demand, prices control, and risks prevention”, and carry out within strategies and precise regulation and control, so as to promote steady and healthy development. The Notice shall come into force on the date of publication.
It announces that the real estate enterprises should increase the housing supply, and are not allowed to open quotation and conduct sales activities at night. People who purchase commercial housing in urban city ( including Yiling District) shall not trade in two years since both parties singed the contract. And it also regulates the excessive price of commodity housing declarations.
New Deal I: Increasing the commercial housing supply
According to the inventory digestion cycle of commercial housing commodity, the housing construction departments at all levels shall scientifically regulate and control market supply. Counties (cities, districts), with inventory digestion cycle of commercial housing commodity less than sixes months, should accelerate the pace of pre-sale approval, urge the real estate development enterprises to speed up the listing of commodity housing projects, increase the land supply for commercial housing and the supply of commercial housing, so as to meet residents' reasonable housing needs.
New Deal II: Strengthening the guidance of commercial housing prices
The Commission shall strictly control the commercial housing price to ensure that the price rise of new-built commercial housing is commensurate with the growth rate of per capita disposable income of local urban residents. For projects in which the declared prices of commercial housing is too high and do not accept the price guidance of the government, the application for pre-sale license, records of net-signed contract and sales of existing house shall be suspended. For real estate projects developed by stages, the guidance price shall not be adjusted within 6 months from the time of listing.
New Deal III: Standardizing the Commercial Housing Sales
After obtaining the pre-sale license, all the pre-sale properties shall be disclosed in one time within 10 days with opening time limited to between 8:30 and 18:00, and no opening and sales activities are allowed at night. Within 5 working days after the public sale, the real estate enterprises shall report housing sales to the housing commission departments andsubmitthe subscriber list. Before sales are completed, the sales progress shall be notified to the housing commission departments regularly. What’s more, the real estate enterprises have no right to refuse the purchaser to buy a house with housing fund, and require or force thepurchaser to sign the written document that abandons fund right voluntarily.
Real estate development enterprises should adopt an open, fair and just way to conduct lottery to sell out to the public at one time, and take the initiative to accept social supervision. And fake lottery and listing house in back-channel are strictly forbidden.
New Deal IV: Curbing the speculate in real estate resolutely
After implementing the Notice, the purchase of commercial housing within the urban area (including the Yiling District) shall not be traded within two years from the date of signing the net contract for commercial housing.
New Deal V: Preventing and defusing the market risks
Adhering to the principle of “residence management and pursue policies in integrated way”, the Commission should take measures, like, corporate restructuring, assignment of credit and financial support, to effectively prevent and control real estate financial risks of risky development projects. Moreover, the Commission shall rectify the violation behavior of housing business and illegal fund-raising. If any real estate enterprises conduct fraudulent fund-raising and illegal absorbing public deposits with providing “down payment loans” and housing sales, it would be included in the list of illegal unreliable enterprises and canceled its net-sign qualification.
New Deal VI: Enhancing market supervision
The Commission shall initiate pre-sale negotiation and commitment system. Before the real estate enterprises obtaining Commercial Housing Pre-sale License, the Commission should discuss with the person in charge of the real estate enterprises and require the enterprises signing the written commitment to regulate opening sales activities. And it is also necessary to strengthen the supervision of commercial housing fund, and dynamically manage the special bank account for pre-sale funds and its funds.
It is necessary to continue to carry out in-depth rectification of the real estate intermediary market. As to the enterprises which have the following violation behaviors would be punished, circularized a criticism and listed into credit files in accordance with relevant provisions: lottery cheating, listing house in back-channel, false advertising, property hoarding, making market panic and escaping regulation measures.
New Deal VII: Developing housing renting market actively
The Commission shall support the enterprises in broadening their business scope so that the enterprises can transform their one-way sale to a comprehensive rental and purchasing mode. And it also utilizes the existing housing or new-built housing for carrying out leasing business to meet the needs of residents with multiple levels of housing, strengthen the management release of housing leasing information to ensure the housing information is true and comprehensive so that the rights of the leased parties are protected. It would establish a service platform for housing leasing transactions, set up and improve the credit management system of the main body of housing rental companies, brokers and workers and build a credit record for the leasing market subject.
New Deal VIII: Implementing Market Regulation Responsibility
The Commission shall report to the local government timely, take the lead to establish a real estate market regulation and consultation leading group to share information and policies on real estate market transactions, land supply, and finance, which are helpful to strengthen market research, accelerate policy research, and perfect risk prevention and control system, so as to regulate the real estate market solidly. (Reporter QiXiaoyu)