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The national property market regulation policy has given the paint industry new hope!

  • Categories:Industry News
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  • Time of issue:2016-11-02
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The national property market regulation policy has given the paint industry new hope!

(Summary description)In response to the continued "high fever" in some hot cities in recent days, a new round of real estate market regulation boom is taking place-from September 30 to October 8, in just 9 days, Beijing, Tianjin, Xiamen, Chengdu, Hefei 21 cities such as Zhengzhou, Hangzhou, Suzhou, Shenzhen, Guangzhou, Nanning, and Dongguan have successively issued property market regulation policies, and some cities have issued house purchase risk warnings, aimed at curbing speculative investment demand and curbing excessive house prices.

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2016-11-02
  • Views:0
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In response to the continued "high fever" in some hot cities in recent days, a new round of real estate market regulation boom is taking place-from September 30 to October 8, in just 9 days, Beijing, Tianjin, Xiamen, Chengdu, Hefei 21 cities such as Zhengzhou, Hangzhou, Suzhou, Shenzhen, Guangzhou, Nanning, and Dongguan have successively issued property market regulation policies, and some cities have issued house purchase risk warnings, aimed at curbing speculative investment demand and curbing excessive house prices.

Why will there be a property market purchase restriction policy in the second half of this year, and this time the property market purchase restriction policy is not issued by the central government, but by each city and region, what are the mysteries? In the end, what impact will it bring to the coatings industry? It is indeed worthy of close attention by coating manufacturers. Where do we see the future opportunities and challenges?

The government has introduced policies to restrict purchases in the property market one after another. It is the government's sober awareness that the overheating of the real estate has affected the healthy development of the overall economy. Analysts said that considering the current weak real economy, insufficient risk resistance, and the difficulty of operating enterprises, the overheating of the real estate market will not only dampen the confidence of investing in industries, further pressure the real economy, but also amplify financial risks.

The Politburo meeting of the Central Committee of the Communist Party of China, held in July 2016, clearly stated that “inhibition of asset bubbles” was required. Analysts believe that this indicates that high-level officials have characterized the “high fever” in the first- and second-tier property markets as asset bubbles, and that regulatory measures are poised to take off. The traditional peak season of the property market is "Golden Nine Silver Ten". At this moment, it is time to increase the regulation of the property market to eliminate the risk of local overheating.

The surge in house prices in recent months is directly related to increased leverage, excessive credit expansion and land supply. The new policy of the current round of the property market is "the right medicine", focusing on curbing investment speculative demand, or restricting purchases and loans, or house prices and land prices, or strengthening supervision, short-term is expected to cool the current overheated property market.

The government has also seen that on the one hand, the overheating of the property market is concentrated in a few first- and second-tier cities, but there are still some third- and fourth-tier cities that are in a downturn. Moreover, in the context of the downward economic growth, real estate is indeed shouldering the important task of supporting the economy. Therefore, the central government has not adopted a one-size-fits-all approach to property market regulation. Instead, the overheated property market regions have adopted differentiated regulation policies to prevent the city gate from catching fire and pond fish.

On the other hand, although the overheating of the property market is in some cities, it does indeed cause great harm to the real economy. If you do not take decisive control measures, it will inevitably cause a disaster. At that time, it will be too late to take measures. At the same time,) has not been able to obliterate the supporting effect of real estate on the economy, and art needs to be reflected in the methods of regulation and control. Only then did we have the regulation requirements of "implementing policies according to the city, one policy at a time". It can be seen that the good intentions of senior management.

In this context, if we want to make a final conclusion on the impact of the property market regulation policy on the paint industry, it can be said that, first, it will be a good thing for the paint industry in the long run; second, there will be some psychological adverse effects in the short term The third is to promote industrial transformation. Of course, these effects will not be manifested at once, but a gradual process.

The long-term benefit to the coatings industry is mainly reflected in several aspects: First, if the overheated property market is not regulated and continued to heat up, it will inevitably hurt the overall economy itself. Once there is a problem with the overall economy, will it be under the nest? After the egg is over, can the paint industry be alone? Second, overheated real estate has caused housing prices to rise, and a large amount of money has been concentrated on buying houses. So where can consumers still have money to buy paint for decoration? Third, this round of regulation is to regulate overheated cities in the first and second tiers. The government still encourages the healthy development of real estate in the third and fourth tier cities, and the third and fourth tier cities are just the last hot spot for the popularization of paint demand. Form a joint force. Based on these three points, it is definitely good for the paint industry in the long run.

The short-term adverse effects are also obvious. Everyone including paint believes that paint products are attached to real estate, and real estate is regulated and will inevitably extend to the paint field. People are mentally branded with the concept that the market encounters regulation and control, and the willingness to realize some potential needs has weakened, and they will not buy paint in the short term. Of course, this kind of influence is mainly those potential demands, and it has no influence on those rigid demands.

    

In response to this property market regulation, “this round of regulation policy is relatively mild, but it is highly targeted, that is, to restrict real estate speculation, prevent bubbles from appearing, and house prices will increase at a slower rate.” Zhu Zhongyi, former vice chairman of China Real Estate Association Say.

The implication is that for those improving needs, the government still encourages and supports them, and the requirements of the improving needs for coatings are also improving. Therefore, objectively improving the quality requirements of coating products is beneficial to promote the upgrading and transformation of coating products.

Therefore, for paint manufacturers, we must clearly understand the essence of this round of real estate property market regulation, do not see the advent of regulation and control, take the past experience to apply. In fact, this round of real estate property market regulation is fundamentally different from the past, so whether in the real estate market or the paint market, the results are also different. Only by treating them differently can we grasp the essence of the market and operate the market rationally. Business opportunities are often in the midst of policy changes, depending on whether you have a keen eye.

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