Policies increase financing for real estate companies, and confidence in the property market gradually emerges

Recently, the "three arrows" of credit, bonds, and equity have successively launched efforts to support the financing of real estate companies. How do all parties in the market feel? China Securities Journal reporters interviewed some banks, real estate companies and industry insiders in Nanjing and surrounding areas and learned that the industry as a whole is cautiously optimistic. Some real estate companies have increased their investment plans, and there are frequent positive signals in land auctions, sales and other aspects.

The number of real estate transactions has rebounded

On a working day in early December, the reporter came to the Huafa Four Seasons Yazhu property located in the Yanziji area of ??Nanjing. The sales office was slightly deserted. The sales staff told reporters that although it has not returned to the state where "lottery" was required when the market was first opened, the overall situation of customer visits has improved recently. At the project site one kilometer away, the tower crane was running and the machine was rumbling. Multiple construction vehicles were coming in and out. Four or five buildings were already close to capping. According to the plan, the building will be delivered in October 2024.

Nanjing online real estate data shows that currently, 888 units of this project have been included in the network, with a total of 520 units subscribed and completed. The sales rate has basically reached 60%, which is a good performance in the area. "The community configuration is relatively high-end, and it is a project of a state-owned enterprise developer, so I feel more at ease." A home buyer told reporters.

On December 5, Huafa Co., Ltd. released a plan for the non-public issuance of A shares in 2022. It plans to raise no more than 6 billion yuan in funds to implement the policy of "guaranteeing the delivery of buildings and protecting people's livelihood" while improving financial performance. structure. Among them, 1.35 billion yuan will be invested in Nanjing Yanziji G82 project, namely Huafa Four Seasons Yazhu Real Estate.

The background of Huafa’s fixed increase is that the China Securities Regulatory Commission previously issued the “New Five Rules” for optimizing real estate equity financing, which proposed the resumption of refinancing for listed real estate companies and listed real estate-related companies. For some time, policy levels have successively made efforts to help real estate companies with financing in terms of credit, bonds, and equity, and have combined a series of measures such as lowering down payment and provident fund loan interest rates and relaxing purchase restrictions in various places. Transactions in some cities have improved.

Data show that the transaction volume of new houses in Nanjing in November was 4,564 units, an increase of nearly 44% compared with 3,179 units in October, which is the largest increase in a single month this year; in terms of second-hand houses, I Love My Home data shows , Nanjing’s second-hand housing transaction volume in November was 7,055 units, a month-on-month increase of 26.7%, ending the downward trend since August, but the average transaction price fell by 1.9% month-on-month.

It is worth noting that from the perspective of new home sales in Nanjing, high-end improved housing in Hexi and other areas is more eye-catching. Take Yuexiu and Yuefu, which opened at the end of November, as examples. The total price of a single unit ranges from 8 million yuan to 12 million yuan. The current sales rate exceeds 80%, and only some low-floor houses have not been sold. At the same time, the number of unsold new homes in Nanjing is still at a high level of more than 70,000, posing greater pressure to destock.

Attach equal importance to positivity and prudence

As the "first arrow" to support the financing of real estate companies, credit policy has high hopes. Since the promulgation of the "Notice on Providing Current Financial Support for the Stable and Healthy Development of the Real Estate Market", a number of banks have intensively signed contracts with real estate companies to provide credit support.

Specifically, major state-owned banks such as Industry, Agriculture, China, Construction, and Communications have successively signed cooperation agreements with a number of leading real estate companies such as Vanke and Longfor. At the same time, national joint-stock companies such as China Everbright Bank and China Merchants Bank Banks followed up and the total relevant credit limit exceeded 2 trillion yuan.

“After the relevant policies were promulgated, we immediately sorted out the existing projects, and based on the actual construction and sales of the projects, we reasonably adjusted the repayment plan and set an extension plan to promote the smooth completion and delivery of the project.” The relevant person in charge of the Bank of Nanjing told reporters that the bank is accelerating the formulation of implementation details for the letter of guarantee replacement pre-sale regulatory fund business and the "domestic guarantee and overseas loan" business of cross-border financing for real estate companies to assist real estate companies in revitalizing existing assets and prevent and resolve the liquidity of real estate companies. risk.

“Under the premise of compliance, our bank will reasonably arrange the growth rate and proportion of real estate loans, prudently carry out credit business in the real estate industry, and issue relevant loans in a stable and orderly manner.” The person in charge said that we will use Relevant policy arrangements are based on the principle of cooperating with "stabilizing growth" and ensuring the stability of people's livelihood, and providing reasonable and necessary financing support to real estate companies.

Paying equal attention to positivity and prudence is the current attitude of many people in the industry. “The market is still relatively cold overall.” A head of a branch of a large state-owned bank in Nanjing told reporters that projects in Hexi and Southern New Town are still preferred when lending to real estate companies. “Many of the contracts signed are letters of intent, and the final loan depends on the quality of the project.

"The person said that project loans of central enterprises and state-owned enterprises are generally easy to be approved, but private enterprises will be required to add some more safeguards, such as organizing syndicated loans.

Judging from the public signings, at present, state-owned enterprises are Most of them are banks and national joint-stock banks. “In my personal judgment, more small and medium-sized banks will wait and see for a while. "A senior executive of a listed bank in Jiangsu told reporters that the introduction of current policies has provided good support to some leading real estate companies.

The recovery of operating cash flow is the key

“In November, Nanjing’s second-hand housing transactions achieved a ‘price-for-volume’ transaction, which to a certain extent shows that prices have basically reached the psychological position of those who previously held money and waited. "A person who has long observed the Nanjing real estate market analyzed to reporters that when the certainty of policies and real estate company operations increases, home buyers will gradually develop clear expectations for market prices, and then dare to trade. "People who have replaced second-hand houses may Funds are invested in improved new houses and are transmitted at all levels. ”

“The current policies can solve most of the problems on the capital supply side, and they will be greatly improved after they are gradually implemented. "A person from a leading listed real estate company in Jiangsu told reporters that the company is currently actively connecting with relevant institutions to promote the implementation of some financing projects. The person also emphasized that the current measures are more to improve the financing structure, and the company is more concerned about when the new home sales market will recover. “The recovery in operating cash flow can truly bring the company back to health. ”

It is worth noting that some regional real estate companies or listed companies that do not use real estate as their sole main business are gradually increasing their investment in real estate projects, showing their confidence in the market.

Early December , Suzhou started the fifth batch of land auctions this year. All 10 land parcels were sold, and 2 land parcels entered the peak lottery stage, with a total investment of 13.2 billion yuan, including Qingshan Road West and Kejing Road in the High-tech Zone Science and Technology City. The northern land parcel was acquired by Suzhou Hi-Tech Real Estate Group Co., Ltd., a subsidiary of Suzhou Hi-Tech Holdings, for 1.82 billion yuan.

In the fourth quarter of this year, Suzhou Hi-Tech and its subsidiaries successively won three urban residential land parcels, with a total transfer area. 156,300 square meters, with a total cost of 3.533 billion yuan, exceeding the total land acquisition in the first three quarters.

Black Peony purchased a piece of commercial and residential land in Changzhou City for 832 million yuan, and also passed the controlling stake in the second land. A subsidiary company has increased capital in Changzhou Huanlong Xingchen Real Estate Co., Ltd. and stated that it will decide whether to further acquire a controlling stake based on its operating conditions.

“The company’s land acquisition and capital increase in the real estate company are based on the current real estate market conditions. Investment decisions are made based on full consideration of relevant risk factors. "The relevant person in charge of Black Peony told reporters that the company is paying attention to the endogenous growth momentum of the market. Its view on the recovery of the residential market in the short term is still neutral, but it believes that the overall market demand is expected to remain stable in the medium and long term.

" After the policy was promulgated, many banks, securities firms and other institutions have recently taken the initiative to communicate with the company about the feasibility of refinancing plans in the equity and debt markets. We will choose the opportunity to carry out financing business, increase the company's capital reserves, and ensure that the project is delivered on schedule. "The above-mentioned relevant person in charge of Black Peony said.

(Original title: "Policies increase financing for real estate companies, confidence in the property market gradually emerges")