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Five lines of beach housing leasing trillion vent outlet return rate pain points

Time: 2018-01-10         Source: China Economic Net         Author: China Economic Net

At the dawn of 2018, a number of state-owned banks successively "grabbed" the housing rental market.

On December 18, 2017, Bank of Communications announced that its branch in Guangdong Province has signed a strategic lease agreement for housing leasing with a number of housing enterprises and housing leasing platforms, including the Vanke, Poly and Foshan Jian Xin Housing Leasing Co., Ltd. The total amount of contracted parties exceeded 150 billion yuan in line of credit.

Since China Construction Bank entered the housing rental market in early November 2017, the top five state-owned banks such as Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications have announced their entry into the market. At the same time, they have provided a lot of financial products to developers and Personal tenant.

According to the Times weekly reporter incomplete statistics, as of now, China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and Bank of Communications has signed strategic cooperation agreements with about 30 cities and provinces in the development of the housing rental market, providing a total amount of intentional credit support More than one trillion yuan.

However, the ideal is full, the reality is very skinny. A joint-stock bank in South China told Die Zeit reporter that the rate of return on domestic rentals is generally not high. Compared with lending directly to developers, long-term apartments have a longer cycle and cost more.

"At present, the state-owned banks are still at a groping stage in the housing leasing market. There are no mature models for a series of problems, such as profit-making mode, operation and operation mode, and exit. This is also the main reason why we are temporarily in this block." The bankers Said.

Large state-owned banks to preemptive layout

Into the housing rental market, the most rapid and positive move was undoubtedly China Construction Bank.

On November 2, 2017, CCB Guangdong Branch and Guangdong Provincial Department of Housing and Urban-In-Building reached a strategic cooperation on housing leasing. CCB will provide a platform for government regulation and guarantee for customer transactions. In the next five years, Funds, channels, etc. to give strong support.

On the same day, Bank of China announced that the Xiamen Branch of the bank cooperated with Xiamen Land Resources and Real Estate Administration. Both parties will cooperate in such fields as the supply of land related to the housing rental market, the construction of pilot rental housing and the financial innovation in housing leasing.

One day later, Shenzhen Branch of China Construction Bank signed 11 strategic cooperation contracts with 11 real estate companies including China Merchants, China Resources, Vanke and Evergrande, as well as BYD (market 002594, clinics) and more than 5,000 sets of long-term contracts Rent houses, and release personal housing lease loan products.

On December 18, 2017, China Construction Bank Beijing Branch jointly launched over 1,500 "CCB Construction and Financing Homes" houses jointly with the Beijing Social Security Center, the First Group and the Financial Street (Quotes 000402, Clinic) Holdings. The bank and Chongqing, Shiyan, Zhongshan, Bengbu, Changsha, Liaoning and other places of government and housing prices signed a housing rental cooperation agreement.

ICBC will also enter the housing rental market, the first destination selected in Guangdong. On November 16, 2017, the business department of Guangdong Branch of ICBC and Guangzhou Housing and Urban-Rural Development Commission signed the Strategic Cooperation Agreement, which will provide 500 billion yuan credit support to the participants in the housing lease market in Guangzhou. In mid-December of December, , Industrial and Commercial Bank of China branch in Beijing also announced that in the next five years, Beijing will provide the housing rental market to a total of not less than 600 billion yuan of financial support for all participants.

Then, Bank of Communications also entered the housing rental market. On December 18, 2017, Bank of Communications Guangdong Branch signed a strategic cooperation agreement on housing rentals with a number of housing enterprises and housing leasing platforms and granted a total of more than 1,500 contracted entities including Vanke, Poly and Foshan Jian Xin Housing Leasing Co., Ltd. 100 million yuan intended credit line, specifically for financial support for the development of housing leasing business.

Previously, the Bank of China has been piloted in Guangdong, Foshan City, Xin Construction Co., Ltd. to provide 20-year financing support to achieve the first mortgage in Guangdong's banking sector to support the financing floor, to solve the bottleneck of housing finance given the Bank's mortgage program .

In addition to large state-owned banks, joint-stock banks are also frequently appeared in the housing rental market. CITIC Bank (601998 Quotes) announced at the end of October last year that Country Garden Group will provide 300 billion yuan of guaranteed funds for the long-term rental residential area in the next three years while providing comprehensive financial services.

Coincidentally, Ping An Bank Hu Yuefei, president of Ping An Bank recently also said at Ping An Bank's Annual Conference of Real Estate Finance that at present, Ping An Group is actively carrying out R & D and construction of a financial leasing system for housing leasing, hoping to join forces with major housing enterprises Promote the main supply, multi-channel protection, the simultaneous sale and purchase of the housing system established as soon as possible.

State-owned large march rental rental market full of momentum. A study said that China's housing leasing market size of about 1.1 trillion yuan, the same period the size of the housing market is about 15 trillion yuan, the size of the leasing market only 7% of the market, with the United States, Japan and other mature markets on average more than 40% Compared with the proportion of large differences.

EHR believes that over the next 10 years will be a phase of rapid development of the leasing market. It is estimated that in 2027, an effective leasing demand of 5.4 billion square meters will be formed in all the cities and towns in the country. The rent will reach 3.86 trillion yuan, an increase of 138% over 2017.

At present, China's financial industry is still dominated by bank financing. As bank capital enters the rental housing market, it will effectively push more players to participate in the rental housing market.

The rate of return to be solved

In the specific model, the state-owned banks, in addition to signing agreements with the government and giving credit to the real estate enterprises, also supported lessees with more financial products.

Beijing Branch of Industrial and Commercial Bank of China launched the "Leasehold Development Loan" for rental housing construction with a financing amount of up to 80% of the total investment of the project with a term of up to 25 years. The "Individual Leasing Housing Loan" was launched for individual tenants with a financing amount of up to 100 Million, up to 10 years.

In mid-December 2017, China Construction Bank launched a "mortgage deposit" for the landlord (lessor), meaning that the house can also "save the bank." CCB Guangdong Branch will "deposit loans" is divided into trilogy: the landlord will sell his own housing lease to China Construction Bank, China Construction Bank to pay all the rent at one time, for example, five years rent 500,000 yuan a one-time delivery to the landlord; then, The housing will be leased by a professional rental operators.

At the China Housing Leasing Summit held on December 20, 2017, Liu Jun, president of China Construction Bank branch in Guangdong Province, disclosed that at present there are three major categories of companies, investment banks and individuals in CCB's Guangdong branch, and 40 financial products are used for purchasing Rented and rebuilt, renovation and maintenance, asset revitalization, rental consumption, one-stop, full category, guaranteed leasing financial service system.

Times Daily reporter learned from Bank of Communications Guangdong Branch that in the area of ​​housing leasing, Bank of Communications has launched financial services such as "full-chain coverage, full product support and integrated platform support" such as financing support, platform construction, individual housing leasing and consulting services.

Zhang Dawei, chief analyst at Centaline Analysts said the bank currently offers leasing credit products, credit misappropriation is likely to occur and the possibility of two real estate leasing leasing, requiring banks to increase the review of the lenders.

In addition, the rental rate of return is also a problem. Ba Shusong, chief economist of the China Banking Association, mentioned in a recent speech his survey data: At present, the rent rate of return in major cities is indeed not high, basically below 3%, for example, 1.33% in Shanghai and Shenzhen 1.34%.

Not long ago, at the 2017 China Housing Leasing Industry Innovation and Development Forum, Yang Jun, deputy general manager of the Investment Bank and Asset Management Department of Bank of China, talked about the difficulties in asset securitization of housing leasing in China. Yang Jun said: "The housing leasing industry has long operation cycle, low rental return rate, uncertain profitability model and lack of mature financial estimation model. The rental cash flow forecasting market in securitization has a low market acceptance, and most require external credit enhancement , Increasing financing costs; securitization of assets is hard to find, a large number of long-term high-quality rental resources supply is relatively short. "

Although the profitability of the rental housing market is temporarily not high, the state-owned banks actively participate in it. There is also a certain corresponding policy orientation and the reform is proceeding first. I believe there will be greater follow-up Follow-up

Asset securitization warming

In the trillion-level housing leasing market, how to solve the problem of long time investment, low rental return rate and large capital demand? Asset securitization or the solution to the above problems.

In this regard, housing real estate research institute principal analyst Zhang Bo pointed out that the current domestic rent apartment rental rate of return of only 3%, many projects do not even return the level of financing costs. In the future, we can increase housing financial support to enrich tax incentives and dividend schemes for real estate investment trusts (REITs) and diversify product types.

In 2017, many single-apartment asset-backed securities products have been launched in the Chinese market. Especially in the short period of two months at the end of the year, six long-term apartment financing plans have been intensively deployed, involving nearly 40 billion yuan of funds.

On October 11, 2017, REITs, the first domestic long-term rental asset asset class, officially broke the ice and opened the door to financing long-term rental apartments.

On October 23, 2017, the first batch of rented housing REITs products approved by the central government in China was approved. Poly Real Estate (market 600048, clinics) was issued with a quota of 5 billion yuan. On December 1, the first single-storey long-rent apartment Mortgage-backed securities products approved, Merchants Shekou (Quotes 001979, clinics) issue, the amount of 6 billion yuan.

On December 11, 2017, the first long-term apartment in the inter-bank market was released by ABN. Merchants Shekou and China Construction Bank jointly launched a 20 billion yuan asset-backed bill (ABN) , The first domestic private-owned rented apartment storage rack type equity REITs approved by the exchange, involving an amount of 3 billion yuan.

"In 2016, the entire real estate industry in the new scale of financing, the bank accounted for 74%." Yang Jun said real estate for the capital-intensive enterprises, this traditional financing has some limitations, Securitization is based on the steady and predictable cash flow of underlying assets.

"Solving the issue of subjective credit in financing ways and, more importantly, speeding up the flow of funds have a very positive effect on activating the stock, improving liquidity and even improving the financial situation," said Yang Jun.

Gan Qishan, a director of Savills Shanghai appraisal department, pointed out that in 2016, asset-backed securitization products based on real estate in the PRC accounted for about 6% of all securitized products and by 2017 this proportion has rapidly risen to 12 % -13%. Due to the limited domestic investment channels, the new type of financial products are very popular in the market.

Li Peijia, a senior researcher at the Bank of China International Finance Research Center, said that currently, China's rental housing securitization market is still at an early stage of exploration. Although it still faces many problems, such as the low return on assets and the lack of supporting financial instruments, with further exploration, it will provide experience for many aspects including later policies and supporting.

"For the financial-side innovation, it is expected that there will be various types of policy support in 2018 for leasing corporate bonds, securitization, etc. Similar financing is also a better way to get money back, helping to reduce costs and is also a mechanism for leasing product innovation Yan Yuejin told reporters on the Times Weekly said that in view of the 2017 already have a few types of real estate investment trust fund product launch is expected to 2018 related supportive policies will be introduced basically in line with the first pilot after the establishment of norms practice.

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