The property market policy regulates or reassesses the inevitable impact of cabinet companies

It has been nearly two months since the introduction of the "New Five Articles". From the perspective of the current cabinet market, it is still affected by the real estate market. Under the circumstances that the pressure on the property market is heating up, the cabinet market will inevitably be affected.

Recently, the internal meeting of the real estate industry has revealed information, and relevant parties are studying and observing the effects of the current real estate control policies. After a period of time, if the control effect does not improve significantly, the possibility of adjusting the policy is not ruled out.

Analysts believe that after the introduction of the policy, the market turnover has fluctuated greatly. The supply of housing in many cities has decreased, and the pressure of rising housing prices still exists. This has seriously affected the sales and development of cabinets and other building materials and home furnishing industries. The strange circle of "adjustment and increase" also interferes with the orderly operation of the downstream industry market.

The reporter was informed that in response to the current market changes, the decision-making level is studying and evaluating, and it is planned to make a decision on whether to adjust the policy after a period of observation.

After the introduction of the “New Five Articles”, individual clauses triggered market disputes. Among them, the second-hand housing tax new policy has caused the turnover of second-hand housing in many places. In the process of implementing the policies, various localities also resorted to a strong administrative means such as “limit orders”, resulting in a shortage of market supply and strong expectations for rising house prices.

In fact, despite the strict policy provisions, many localities have risen in disguise and other prices, which has weakened the effect of the policy to a certain extent. Recently, frequent auctions of high-priced land in Beijing and other places have also highlighted the bullish mentality of housing companies on the market outlook.

The industry believes that the recent decision-making level has very little to say about real estate regulation, which is intended to dilute regulation and observe the effect. If house prices continue to rise in the future, the market indicators have not improved, and it is not ruled out that the individual terms of the policy will be adjusted as soon as possible in the second half of this year.

Against the background that urbanization will continue to release a large amount of housing demand, the administrative color-intensive regulation and control measures are not conducive to the stability of the real estate market, which in turn affects the urbanization process and economic trends. Many institutions believe that "de-administration" will become the direction of future regulation.

Property tax may be one of the above “long-term regulation” measures. The China Securities Journal reporter was informed that the multi-local property tax pilot program has been reported. After more than two years of pilot projects in Shanghai and Chongqing, it is not excluded that the tax will be expanded during the year.

The property tax pilot will be expanded in the short-term or small-scale, and may be mainly for incremental housing. Differentiated credit and tax policies will become the norm in the future. The policy of restrictive purchase of housing with strong administrative color may be gradually released with the reform of the system of land and household registration, but it will still exist in the short term.

Most analysts believe that the real estate market may maintain a moderate recovery trend in the future, but from the indicators of trading volume and prosperity index, the market will still be at a low level.

Regardless of which way the government ultimately chooses to regulate the property, this news is undoubtedly a good news for the cabinet industry. The adjustment of the policy is to stop the continued rise of housing prices, so that more people can afford to buy a house, the sales of the house go up, and the demand for downstream products such as cabinets naturally goes up. Therefore, the future prospects of the cabinet market will be better and better. This is undoubted. For cabinet companies, they will face a new round of opportunities and challenges.

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