Shenzhen’s housing price not to be affected by new policy

Published on June 24, 2009 by connie | This story has been viewed 322 times

Shenzhen earlier announced the Shenzhen’s Reform Proposal of Housing Accumulation Fund System, according to which, the 2.28 million employees with household registry in Shenzhen would all enjoy the Housing Accumulation Fund hereafter. The exact paying time would be May 22nd, 2009 when the Proposal was approved and the paying registered time was planned to start from the end of next year.

Shenzhen had established the housing fund system that had been included in the social insurance since 1992. However, due to different reasons, Shenzhen’s housing fund system had some limitations that the number of beneficiaries was few and it had no function of low-interest loans. The announcement of this Proposal revised some of the limitations and the low-interest loan function was the most impressive. Some investors considered this new housing fund system will accelerate the rising of Shenzhen’s housing prices.

As per the current rate level, she loaning rate of commercial housings of five years or more is 5.94% and 4.158% after a 30% discount and the loaning rate of housing fund of five years or more is 3.87%, 1.288% lower than commercial housing loaning rate. Some house buyers worried the lower-rate housing fund loan mean further credit loosing, which could possibly stimulate the investors to invest to pull up the housing prices that have already been high.

An analyst of DTZ Real Estate, Jiang Binghe considered that those worries were unnecessary. First of all, the housing fund could only be drawn or used for loans after several years’accumulation. Second, the number of household registered population of Shenzhen was small and the housing fund loans basically had no market. Therefore, commercial loans were still the priority of housing buyers and short term loans were not possible to pull up the consuming capacity of Shenzhen’s property market.

Shenzhen Post staff Connie contributes to the story.
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