Group 1 - In May this year, Zhejiang and Sichuan issued special bonds for the acquisition of existing commercial housing, with issuance amounts of 1.75 billion and 170 million respectively, accounting for 3.2% and 0.6% of the new special bonds issued in each province [1] - The total issuance amount for these bonds reached 1.92 billion [1] - Out of the 11 acquisition projects in these two regions, 7 were owned by local state-owned enterprises, 2 were mixed-ownership enterprises, and 2 were private enterprises [1]

Core Viewpoint - The recent announcement regarding the "first batch of special bonds for the acquisition of existing residential properties" has garnered significant attention in the real estate sector, particularly in Zhejiang Province, where over 1.6 billion yuan is allocated for this purpose, primarily aimed at affordable housing [1][4]. Group 1: Special Bonds and Their Impact - The Zhejiang Provincial Finance Department disclosed that eight residential projects are included in the special bond acquisition plan, with a total amount exceeding 1.6 billion yuan, mainly for affordable rental housing [4]. - This initiative marks a breakthrough and innovation in the functionality of special bonds, expanding their application scope and serving as a significant industry benchmark [3][4]. - The funding for acquiring existing properties for affordable housing previously relied mainly on financial institutions' loans, but the introduction of special bonds enhances the diversity of policy tools available [4][8]. Group 2: Regional Implementation and Market Dynamics - The implementation of special bonds for property acquisition is taking place in lower-tier cities like Huzhou, Wenzhou, and Jiaxing, rather than in the provincial capital, Hangzhou, reflecting the high inventory and demand for de-stocking in these areas [5]. - This practice is expected to create a dynamic conversion mechanism between commercial and affordable housing, addressing both the inventory reduction in the commercial housing market and the supply of affordable housing [5][6]. Group 3: National Context and Future Directions - Since the proposal of "acquiring existing properties for affordable housing" in May 2024, over 60 cities have expressed support for this initiative, resulting in the collection of more than 150,000 affordable housing units [6][8]. - The government work report for this year indicates a planned allocation of 4.4 trillion yuan in special bonds, emphasizing the importance of acquiring existing properties for affordable housing [8]. - Experts suggest that future acquisitions could include commercial properties to enhance the efficiency of affordable housing resources [9][10].