Property market glut developers unwittingly bought land to be returned to government debt | developer | _ news

Liu Jiubang Lin Xiaozhao

"We have applied for a refund, but the Government's argument is that back, but currently there are no money back. "Developer Jeff (not his real name) has rather depressing, as the company's real estate sales downturn, he tried to have hundreds of acres of undeveloped land is returned to local governments.

Since April, Li Ming in the third-tier City real estate has been selling cars in the East.

"Our debt ratio is not high, it's not bad, but sold the House still really uncomfortable. "Li Ming told the newspaper journalists," said land since it can never return, you've got to put it. ”

Li Ming, as more and more developers lose interest in buying land.

"Hot phenomenon is hard to land market in the second half of last year, the lines of urban land have cooled, and has begun to produce Division. "Zhang Dawei, centaline property's Chief Analyst told this reporter, real estate enterprises in poor sales, tighter capital chain, although still a thirst for urban plots, but purchasing land tend to be cautious and rational.

　　Auction spectrum now

　　Downward pressure transmitted to the land market of the property market.

Centaline property Research Department statistics show: May first-tier cities combined turnover in the land of 26,662,710,000, this turnover was its lowest level in recent years.

Among them, the residential land sold only 7 cases, settlement land amount of 7.68 billion, was created last year to its lowest level. Floor residential plots sold price is 7592 Yuan/square meter, compared with April 12363 Yuan/square meter, transaction prices dropped. Average premium rate was 16.5%, compared with 37.2% in April.

A national developer company responsible for the design of Guangzhou Miss Wu told the newspaper, although recently the Division in examining some of the plots, but have basically does not participate in the bidding. "Must now be prudent caution. ”

G-Swiss Research Center, according to the data provided, May 15 typical 2.746 million square meters of real estate enterprises, down 66%, with value of 8.8 billion yuan, down 65%.

Among them, China resources land, Lake property, Greentown China, shimao property, such as agile, offshore real estate tap room business monthly has not accounted for.

In fact, May push the Governments to speed up the pace, but due to the overall market downturn, developers intend to greatly affected, auction and the opening price of transactions has continued to expand.

Guangzhou, Shenyang, Chengdu, Foshan, Hangzhou, Nanjing, Kunming, Changsha and other hotspots are "not immune".

Shenyang last month launched a total 18 sites, eventually only 8 deal, with the remaining 10 all the land auction. As a contrast to May 2013, all 7 sites launched in Shenyang were sold.

A developer who has multiple projects in Shenyang told this reporter: "few years ago ceded a lot of land in Shenyang, the current local property market oversupply, coupled with insufficient increase import and tight, property market and the city were both depressed. ”

"The concern now is how to inventory, which has a little to buy land. "Li Ming told the newspaper reporters that" now the situation is far from clear, than to buy land on the selling floor emergency. ”

CEO of e-House China Ding Zuyu believes that real estate enterprises on land markets are essentially negative, the land market entered the winter cold is a foregone conclusion.

Fu Long Bin a real estate agent, the Dean told the newspaper, next to the land market will be even colder. In case of market does not accept local pace will slow down the supply of land.

On April 28, launching a rubber village, located in old town road, haizhu district, Guangzhou East residential plots, as a rare old town residential plots in Guangzhou has caused widespread concern, but transfer of the Guangzhou Municipal Land Bureau suddenly announced recently the Massif abort.

　　Land revenue decline

At the same strategic advisory research director Zhang Hongwei, 2014, the real estate market entered a downturn, land leasing also shown a downward trend in growth in some cities even in cases of land auction, which will directly affect the solvency of the place, can trigger a periodic financial crises.

Zhang Hongwei told this reporter that, under the current tax structure, local land gains need to be handed over as part of the Central, the remaining income from land belonging to local government funds, in addition to the required purpose, larger dominated on the remaining land rights of local government. From this point of view, pushed around the land financial sparked land boom.

Zhongyuan Shi Yongqing holdings founder, told this reporter said most hopes to sell debt, when real estate prices drop, "old and new" no longer works. "The new thaw is not so much money, old debts can be a problem. ”

A real estate private equity chiefs and journalists share a real case: one of his friends in Nanjing had a 200,000 square metres of commercial projects, now largely "death" in there. When he purchased land, local authorities told him that only they were planning a commercial project in the region. Two years later, around the commercial real estate "everywhere".

The project developers in Shenyang said: "now, borrowing ideas, many local governments are ' tube take whatever ', in the context of land sales, a number of big infrastructure projects in previous years local governments have difficulty even to pay the interest. ”

Faced the dual dilemma of declining revenue and debt is high, some local authorities have been unable to calm down.

Including Nanning, Tongling, Wuhu, xuancheng, launch, Wuxi, Ningbo, cities, directly or indirectly, to "rescue" policy.

Nomura Securities Chief Economist Zhang Zhiwei, China told the media that, for some local governments to shore up the markets policy, Central acquiescence is more likely, because of local government financial pressure is more obvious. Past, the loose comparison of monetary policy of the Central Government, local governments can find the money in other ways, but now local governments greater dependence on land.

2013 with strategy consulting has released 45 reports show the restriction of financial dependence of urban land, land financial dependence on a higher (more than 80%) in 13 cities, followed by Foshan, Nanjing, Changsha, Hangzhou, Hefei, Fuzhou, Kunming, Sanya, Chengdu, Ningbo, Wenzhou, Jinan, Xuzhou,. Among them, Foshan, Nanjing, Changsha, Hangzhou, 4 cities, over 100%, Hangzhou with 156.4% the top.

　　Continue to sell or foreclosures

According to reporter, and facing the property market and the city were both cold realities, there are obvious differences on local governments in pushing policies.

Hangzhou, Shanghai and other cities to land almost "outages"; Chengdu, Shenyang and other cities continues to strongly push and risk an auction; represented by the Changzhou, Lianyungang city slashed for the total.

One veteran industry insiders believe that the Government had "xishou" land, bet includes the fiscal reserves and the length of time the market warmed, point is that the Government does not rely on revenue from land sales in the short term can properly. Prior to Hangzhou, Shanghai land abundant fiscal reserves, the Government dares to gambling gambling market warmed, it is normal.

Zhang Hongwei, suspended release of the Ministry of land and resources of the national this year housing land supply plans, from place itself announced that it would increase the supply of local government in the land of the initiative. Especially for volume and rhythm, local governments may be slowing by reducing land use plan, the land sold rhythm, lower the threshold for intervention measures such as avoiding the land auction, thereby reversing the stalemate in the land market, gaining more land leasing premium income.

(Original title: property market glut developers not to buy)

03:26 June 04, 2014 First financial daily