Kunming condominiums are on sale, buy a second one for half price

Kunming flower trading center.

The selling price of condominiums in Kunming, Yunnan Province, has been falling again and again, and some properties have even launched a special offer of buying one set and then buying the second set for half price, some of them are also giving away parking spaces and so on.

Condominiums in Kunming City have recently been staged frequently with special offers and promotions, and prices have been falling below market expectations.

The Daily Economic News reported on March 30 that the Poly Sky project in Wujiaba, Kunming, recently launched a promotion of “buy one apartment, get the second one for half price”.

A property consultant of the project said that the project is currently selling units of 25-53 square meters, except for the 25 square meter unit which is a flat floor, all other units are LOFT (LOFT units are usually small units with high lift, and the floor height is about 3.6-5.2 meters. Although the sale is calculated by the floor area of the first floor, but the actual use of the area can reach nearly two times the sales area.) The “second half price” campaign is only for 25 square meters of flat floor apartments.

The property consultant did a rough calculation: the total price of a 26.1 square meter flat is RMB 323,600 (the same below), and the price of the second 25.46 square meter apartment is RMB 161,800 after the discount, so the total price of the two sets is about RMB 485,500, and the average unit price is about RMB 9,400 per square meter. While the LOFT apartment of 26.1 square meters in Poly Sky is priced at about 300,000 yuan per set, with a unit price of 11,500 yuan/square meter, the difference between the two unit prices is about 2,000 yuan/square meter.

In order to speed up sales, some properties are also rubbing off on the school district housing fever. According to the information of Yunnan Housing Network, the apartments with degrees currently on sale in Kunming include Poly City, Shang Yue Tiandi, Runcheng Xue Fu Mansion and Qicai Yunnan First City, among which, Runcheng Xue Fu Mansion can also be settled.

The phenomenon of significant discounting of apartments in Kunming appeared in the second half of 2020. In August 2020, Strength Diejintai in Chenggong launched a 4,700 yuan/square meter furnished apartment, pulling the price of furnished apartments in Chenggong to below 5,000 yuan/square meter for the first Time. The report said that a Home buyer spent more than 14 million yuan in November 2019 to purchase 14 apartments to open a hotel, and due to the fall in housing prices and a loss of more than 3 million yuan in less than a year, the home buyer asked the developer to return the apartments.

The large inventory, which is difficult to digest in the short term, is what caused the substantial price reduction of the apartments in Kunming. The data released by Kunming Reason shows that the supply of Kunming condominium market has increased significantly since the second half of 2018, and the inventory has gradually increased with it. By the end of 2020, the stock of Kunming’s commercial office market reached its peak in the past six years, with a 99.7-month period of depletion. In other words, without new supply, it will take more than 8 years to sell out.

In terms of the apartment market alone, the apartment stock in Kunming in 2020 will be about 4,542,200 square meters, which will take 53 months (about 4.4 years) to digest.

The data of Kunming Rui Li also shows that both Chenggong and Kunming’s overall commercial office market have more supply than demand, and the supply is expected to be 1.8 to 2 million square meters in 2021, but the turnover is only expected to be 1 to 1.2 million square meters, and the overall turnover will continue to show a downward trend.