investment demand have evacuated the market

Housing policy fine-tuning to space enterprises continued to pressure "mountain" Jin Zhigang Chen Jin-song since March, depressed property market has long been close obviously warmer, recent rebound in some property prices in individual cities, local governments continue to make fine-tuning attempts. At the same time, real estate investments in long-term growth slowdown, a fall in housing starts. After the experience of long-term control, the property market seems to go to a crossroads。 Chinese securities news reporters interviewed industry CEO Jin Zhigang, Chen Jin-song, Chairman of real estate. Jin Zhigang believes that the current real estate market is still in a State of imbalance, now a buyer's market, prices not rise, housing challenges faced by enterprises is far greater than the opportunities. Chen Jin-song, current policy is to support just need home buyers, fine-tuning of policiesVery limited cutting interest rates and reserve requirements of the downturn on the real estate contract forms a substantive good, first time home buyers credit demand would further meet the crowd. Rising house prices, there is real China Securities journal: recent property transactions to pick up, some cities have individual sale prices rebound, this warmer will it become the starting point for new housing prices rose cycle? Jin Zhigang:When May sales season comes in the traditional, some products have achieved good sales results you want. Sold loose a relationship between the warmer parts of the first half and policy, policies in the first half of the year was warmer, Bank mortgage support is stronger than last year, the common commercial policy clarification "needed market" become hot. Unlike last year, even the first-time home buyersDifficult to lend to or have to pay high interest rates. But we still do not have price increases possible, after all currently sold for pick up are based on active price of the seller. Buyer purchased from 2007 has accumulated a wealth of experience and a more adequate purchasing power, trade will expand. Overall, still a buyer's market, balancing market which is not in buyerField, is not a seller's market. So in the process of formation of new balance will now hot and now cold. Current policy is to support just need home buyers, industry faced with challenges far greater than the opportunities, we believe that this year's market is still dominated by go. Chen Jin-song: Although some rebound in property prices, but on the whole we can only judge the price volume support. WorldMonitoring pricing data is correspondingly reflected by the 28 cities "is the leading indicator of price", with the March-May the rise in the volume, number price real estate trend of the growth slowdown, cut into narrow, 2012 new real estate 67.4% cut of less than five per cent cut. Data show that since the current regulation, investmentDeclining April investment than the latest data from 13.3%. By volume and the investors share data to judge, we assumed that prices are clearly volume support, has been temporarily lifted prices expected to fall risk. However, due to the current housing and Enterprise inventory at a high, speed is not ideal, this inventory process is longer than in 2008, andHousing situation of enterprise capital chain is still tight, we carefully consider that prices can hardly be substantive rise this year. This regulation is loose and cannot be compared with 2008, 2008 bailout of credit, and this is pre-adjustable fine tuning. Rate cut good just need home buyers in China Securities News: housing contract hit a year high last week, the Red May appear again,Pick up what are the main reasons? Can extend the current warming trend in the second half? Chen Jin-song: current data, transactions May have better performance on 3 April. I think the markets are still continuing this year, trading volume should be higher than last year, that this regulation of contract lows at the beginning of this year has produced. As trading volume continued to pick up, housing enterprise's cash flowImprove progressively, believe in this three-room reflected on quarterly. In this way, prices will stabilise as volumes continue to rise. However, the current policy is supported just need home buyers, most of the enterprises in this year's payments crisis facing challenges status quo, market is still dominated by running, so I carefully think House prices this year to really improve. China Securities journal:Loose monetary policy can bring substantive benefits to real estate financing and sales? Jin Zhigang: reducing the reserve requirements to enhance home buyer mortgage loans, interest rate cuts can save part of the cost of the purchase, real estate sales for a certain good from this angle. But for now at least, domestic finance environment change is not obvious, coming intoEnvironment may be a little loose. From the perspective of industry, company financial strength, cash flow stability, funds sufficient to support our development goals. Chen Jin-song: in the context of capital outflow risks still exist, current liquidity pressures in the banking system needs to moderate easing of monetary policy to ease. Deposit reserve rate cut will help money multiplier to pick up. Interest rate cuts help cityOverall financing conditions relaxed. The current economic growth, weak credit demand in other industries, and the first-time home buyers demand in the housing market is supported by policy. Comprehensive judgment, cutting interest rates and reserve requirements of sustained downturn on the real estate contract forms a substantive positive, first time home buyers credit demand would further meet the crowd. Housing and enterprise financing, current policy, Support is still impossible, but did not rule out other industry credit flows to real estate industry, forming an indirect positive. Also did not rule out some location supporting mature view the site, market reasonable position, small and medium sized high, may be able to get sufficient collateral of home projects favored by some banks. Land prices are still high in China Securities journal: we are aware that this year the first halfYears active on a number of leading enterprises in the land market, land market transactions in the country and still larger drop when compared with the same period last year. Active on the dragon-head enterprises began in the land market in the near future because of what? Jin Zhigang: currently in the land market is in a wait-and-see, land prices are still very expensive. Many land coming from the present market situation is hardly accounts, transactions overall atmosphere is light。 Current storage to meet the future development needs. As the performance of the Group continues to grow, we will duly attract excellent low-cost land bank and national layout support group strategy. Chen Jin-song: level secondary market often lags market, market downturns at the present level is normal. I also note, there's still some room and enterprise in the implementation of large scale expansionStrategy. Careful analysis of their results, some of which are listed in Hong Kong diablo 3 power leveling, capital costs less than enterprises in the Mainland while some enterprises in the Mainland can be implemented tense capital chain expansion, is behind the large shareholder support and multi-channel financing. Worthy of note is, the level of market activity and enterprises, their sales this year is very good, basically ranWin big city. On the whole, not seen money tight situations change room and enterprise, capital chain risk prevention is the mainstream. Don't you see in the small room of enterprise bankruptcy events do occur? Such scenarios also demonstrate the differentiation of growing market, concentration of upgrading is the general trend of China's real estate market. China Securities journal: local governments for land of financial dependence for a long time,Land sold under the background of weak, some local authorities tried to control restrictions. Another way of saying that is that as costs rise, margins have been in the real estate industry back to a reasonable level. These two factors together, does this mean that the current fall in house prices has very limited space? Jin Zhigang: after nearly two years of macroeconomic regulation and control, regulation and results have been very impressive, restricted credit, limitedPurchase limit, limit three policies under the regulation, investment demand have evacuated the market, falling house prices appears widespread, prices in April and continued the callback last year before this year. Now a buyer's market, key is to look at sales of judgement House prices to fall, if sales continue to upgrade, the cut space are less. Our medium and long-term market bullish property market, in macro-controlAnd without investment demand is suppressed, better positioned to meet the rigid requirements, consistent with the goal of Government. At the same time close to the market price adjustment policy, insured and quantity, quick sale, fast turnaround, clearly grasp the market pulse. Chen Jin-song: current financial rely heavily on local Government on land. If House prices fall sharply, land market cold directly influence local governmentsLand revenue, the Government cannot land mortgage financing. Therefore, collapse of the prices, there is a large area of local government debt default. From this point of view, the Government appears unacceptable situation where prices fell sharply. In addition, house prices continue to fall this time, there have been many close to cost price promotions run sale, very thin.As the market continued to rebound since March of this year, trading volumes continue to enlarge, price oversold danger has largely been alleviated. I have limited room for current prices. Guard houses reduced supply China Securities News: according to the national real estate loan requirements decreased markedly in the near future, residential new construction area also declined compared with last year. Has forecast a twoInsufficient domestic supply of goods may occur after years, and agreed with this statement? If there is a supply gap, on the supply of affordable housing can fill? Jin Zhigang: we're on high alert "area of residential new construction fell" this, regulation of supply and demand imbalances in six months to a year is enough to make all efforts to naught. Common commercial housing and affordable housing is designed for two types of customers, the municipalField, with two operation mechanism, smaller alternative, to grasp, not confuse. Affordable housing is provided for people who cannot afford to buy housing at this stage homes, this affordability housing needs of customers and the market is still a big difference. Chen Jin-song: January-April this year, self-financing enterprises grew by 17.5%, source 41.8%And hit again. Future investment and residential new construction area there are continued downside risks. Therefore, despite the glut of cases is still continuing, but I worry about the future with potential supply reduction, would gradually evolve into short supply situation. Loan demand for various reasons: supplies under the policy, the deterioration of the economic situation and market expectations。 On the whole, this year new loans since a proportion of the total amount of Community financing are further enhanced. Due to strict Central Bank's total credit control, banking and loan assessment, four months before commercial banks hard to get more money into the market. At the same time, economic growth, demand, potential bad loan ratio has the potential to improve, resulting in silverHoarding more serious mood, from the average loan interest rates remain at high levels can be seen. On affordable housing issues we've discussed a lot. Protection object of protection should be the marginal utility of low income people, but because of rent in the allocation process and the mismatch of resources, resulting in the loss of social welfare. Solved the problem, we'll explore the affordable housing supplyMight make more sense. China Securities journal: commercial real estate analysts said some cities have started to bubble, the current commercial real estate is still the important approach to real estate business regulation do? Jin Zhigang: commercial real estate is one of the good group part of the business, but the group is still dominated by residential real estate business development, adhere to the development need residential productsAnd control in 10% of commercial real estate. Current group's business sector to "square" for the main product line, held by the operations group's development or commercial property. Chen Jin-song: to a certain stage of development of real estate industry, will develop commercial real estate, regulation has only accelerated this trend. I'm bullish on commercial real estate, mainly to seeOne or two cities there have been many business start "upstairs", as if Hong Kong supermarkets can open to a dozen buildings. Four cities CBD rents last year has been on the rise, this is a good sign. Of course, we should also see some three-lane urban problems of oversupply of commercial real estate. In addition, there are worth worrying about, we are engaged in commercial real estate, businessWhen the "axe", or want to sell residential, commercial itself is not making money does not matter. But one day, this business is not to make money sell House will become a huge burden.