During the Qingming holiday, a real estate vlogger posted an article on Weibo saying that the prices in the Beijing area of Xianghe have been “knee-jerk”.
The vlogger said, for example, that Xianghe Fuli New City, which was once sold for 25,000 yuan/square meter, launched a special room unit price of only 8,000 yuan/square meter in Qingming, and a parking space will be given away if you buy the room.
China Securities Journal reporter interviewed the person in charge of the project’s sales office learned that 8000 yuan / square meters of housing has been available since the New Year, the Qingming holidays only increased the supply of strength, taking out a whole unit and other tail-end housing in doing concessions. Even without concessions, the normal selling price of the property is only sold to 10,000 yuan / square meter out.
Image source: A real estate vlogger microblog
“The hardest thing is to attract Beijing customers to see the property.”
“There is not much local demand in Xianghe, the developers are counting on Beijing customers to come and see the properties and buy them.” On April 4, this reporter interviewed Li Hong (a pseudonym), a salesperson of Xianghe Fuli New Town, and learned that at present, there are a total of 8 large real estate companies that are stationed in Xianghe, and the sales of Vanke, Fuli, Hongkun, Rongsheng, Peacock City and other well-known developers in Xianghe are more seriously affected by the dual impact of purchase restrictions and the epidemic. Since the outbreak of the epidemic in early 2020, properties in the Xianghe area are basically in a serious state of stagnation. “During the epidemic, sales offices often saw no one.” Li Hong pointed out that “all developers [in Xianghe’s projects] can be said to have all suffered heavy losses in 2020.”
In response to the current price, Li Hong told reporters that the Fuli New Town project has done many phases in Xianghe. Among them, in 2014-2015, the selling price was 7,000 yuan-9,000 yuan/square meter, after which there was a wave of obvious price pull-up, and in 2016 the average price rose to 14,000 yuan-15,000 yuan/square meter, and then after that the price rose rapidly, and by 2017 before the purchase restriction, the highest price rose to 24,000 yuan-25,000 yuan/square meter, which is the highest selling price of the project. At that time, the price of second-hand houses around the area also rose to 18,000 – 22,000 yuan/sq.m. From March to June 2017, the entire northern three counties launched purchase restrictions, and foreigners who bought houses needed to make up social security and hukou, and it cost money to make up these, and there were strict restrictions on the qualifications of buyers. in the second half of 2017, the price fell to 16,000 – 18,000 yuan/sq.m. However, there were still some sales volume and it was not considered the most difficult because there were still some pre-reserve places with each salesperson. By 2018, the transactions were more difficult, and the whole year saw a significant drop in transactions and prices fell to around 14,000 yuan per square meter. After that, in 2019, prices remained unchanged at around 14,000 yuan per square meter, and sales were made to qualified people one after another.
“The toughest part was 2020, when no one expected the epidemic to break out. Nor did they think that the epidemic would have such a big impact on the sales of properties around Beijing.” Li Hong recalled that the sales office was only officially opened in April 2020, and just able to see the property in May, not expecting the second outbreak of the epidemic in Beijing Xinfaodi in June, the customer source was again broken. The Beijing-ring property market is basically all counting on Beijing home buyers to digest, and there really isn’t much local demand.
Li Hong said that in December 2020, Shijiazhuang outbreak of the epidemic, the sales office and all closed. So throughout 2020, Xianghe’s local real estate projects are all in a heavy loss. In 2021, the major projects have stepped up publicity, period houses, houses, villas, can send parking spaces are sent to the parking spaces, can do special price rooms are taken out to do special price rooms. In a word, do everything possible to achieve sales, payback.
House for free
“Probably in June and July 2020, the new houses in the three northern counties can normally give foreigners online signatures, do loans is no longer news. The local housing authority is tacitly approved. The first set of housing 30% down payment, all can be normal loans, net sign. From booking to pay the down payment to do the loan, and then to the net signature to deliver the house, the time is only about 2 months.” For foreigners in the Xianghe area of the property transactions, a number of Xianghe local sales staff told reporters.
“However, there are certain restrictions on education, requiring a college diploma or above. If not for settlement, foreigners can only buy a home in Xianghe.” A recent purchase of a house in Xianghe “northern drift” a family Wang Liang (a pseudonym) told China Securities Journal reporter, “second-hand houses because of the individual, Xianghe area is basically a small real estate agent, so the qualification needs to find a third party, need to pay a little money. The qualification of the first-hand house sale, the developers basically do it all for them.”
“Many people who buy houses, there is the psychology of chasing after the rise and kill the fall.” Wang Liang pointed out, “Vanke’s project in 2017 the highest point speculation to close to 40,000, but also to tie the parking space to sell. Now, the finely decorated houses are only about 15,000, and few people are looking at them.”
In addition to the Xianghe area, the reporter observed that the most famous Yanjiao in the three northern counties also saw a price cut. Some buyers bought houses in Yanjiao at a high point, but due to the high ratio of loans in the early stage, the market price fell later, resulting in insufficient repayment of loans, resulting in a “negative equity” situation. These buyers even advertise on social media platforms that if they take over the house and repay the subsequent loans, the house will be given away for free.
In response to the risk of such purchases, Yanjiao and Xianghe have introduced a new talent settlement policy, which allows foreigners who meet the settlement requirements to become potential home buyers, increasing the demand side of the supply. In addition, Yanjiao has also launched a new policy for preexisting home buyers to settle down in 2021.
In this regard, a property observer told China Securities Journal reporter that, at present, the price of the three northern counties has been “waist cut” compared to the highest price in 2017, “knee cut” and other prices have fallen significantly, and many properties are indeed priced lower than the three or four lines of housing. For the “northern drifters” a certain attraction, but, “housing is not speculative” tone, it is difficult to appear in 2016, 2017, the kind of ring Beijing a year doubled the trend. Once overheated, the inevitable regulation. For example, from the current introduction of the new policy of property market regulation, once overheated, raise the sales limit period, raise the threshold for settlement and a series of policies will follow.
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