The second-hand residential unit prices in February this year showed that the northeast accounted for 50% of the 10 cities with the lowest prices on the mainland, while Heilongjiang Province had the most, reaching three cities.
According to a March 15 report by China Business News, the average unit price of second-hand homes in February by cities on the China Housing Price Quotation Platform showed that the 10 cities with the lowest prices were: Hegang, Shuangyashan, Shizuishan, Qitaihe, Zhangye, Bozhou, Tieling, Shuozhou, Liaoyuan and Baise.
Among these 10 cities, Hegang, Shuangyashan, Qitaihe, Liaoyuan and Tieling are all in the northeast. Among them, Hegang, Shuangyashan and Qitaihe are located in Heilongjiang Province, Liaoyuan is in Jilin Province and Tieling is in Liaoning Province.
The prices of Hegang and Shuangyashan are both below RMB 3,000 per square meter (RMB, same below), and Qitaihe is just above RMB 3,000 per square meter. The unit price in Hegang is 2,101 yuan per square meter, which means it costs only 200,000 yuan to buy a 100 square meter house. In fact, the old neighborhoods, especially the construction standard is relatively low shanty house price is even lower, a house tens of thousands of yuan, the unit price of a few hundred yuan, such “cabbage price” house in the last two years has been widely concerned about public opinion.
Data show that Shuangyashan real estate development scale in 2019 shrunk significantly, the annual completion of real estate development investment of 660 million yuan, down 61.7% over the previous year. The sales area of commercial properties was 266,000 square meters, down 44.7%, including 231,000 square meters of residential sales area, down 45.9%; sales of commercial properties were 690 million yuan, down 47.3%, including 570 million yuan of residential sales, down 48.4%.
The newspaper quoted commentators’ analysis that these cities in the northeast are mainly energy-based cities, especially with coal industries. With the depletion of energy and population outflow, many cities are also facing a contraction situation.
Zhang Dawei, chief market analyst of Centaline Property, said that Hegang is a typical shrinkage city, prices are so low mainly because the resources are depleted, the industry itself has contracted, the population is in the exodus, so the house is very cheap.
According to Hegang’s statistical bulletin, at the end of 2019, the city’s total household population was 985,000, including 802,000 urban residents. Compared with 2013, the total population of Hegang has decreased by 93,000 or 8.6% in 6 years.
According to Yi Baozhong, professor of Northeast Asia Research Institute of Jilin University, some resource-depleted cities in Northeast China have less new demand for real estate, mainly due to underdeveloped industries and large population outflow.
Zhang Bo, branch director of 58 Anju Room Property Research Institute, said that, on the one hand, in recent years, various places have introduced settlement policies to pull the population to settle down, and as the threshold for settlement around the world continues to lower, the proportion of the population flowing into the five major urban clusters continues to rise, the overall population of the northeast region shows a pattern of greater outflow than inflow, which to a certain extent weakens the willingness of real estate enterprises to invest in the degree. On the other hand, the population in the northeast region is also accelerating to Shenyang, Dalian, Harbin and other large cities, which also led to the imbalance of real estate development in the region intensified.
Commentator Wen Xiaogang said that the population exodus from the northeast is mainly the result of the evil consequences of the CCP’s planned economy, which has been the lair of the planned economy since the establishment of the CCP. Even though the Chinese Communist Party has been engaged in “reform and opening up” for so many years, the Northeast region has been accumulating heavy, the economy is still following the same set of planned economy, the market lacks vitality, resulting in the economy at the bottom of the mainland, young people do not see a way out, have to migrate out of the country, demand is reduced, housing prices will naturally fall.
Some netizens also said: the northeast is a high proportion of large enterprises in the economy, everyone wants to enter only a few large enterprises, resulting in a lack of vitality in the job market, the bottom of the wage, the government should encourage innovation in large enterprises, small businesses and individual entrepreneurship.
The mountain east daily people “Road to the world” said: “big enterprises must have supporting industrial chain. The environmental feudal legacy of governmental thinking is particularly intact.”
The report said that the statistics include prefecture-level and prefecture-level cities, including municipalities directly under the Central Government, cities listed in the plan, provincial capital cities and ordinary prefecture-level cities, excluding county-level cities. Therefore, some county-level cities with lower housing prices are not included in the statistics.
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