It’s been nearly a month since the release of the new Shanghai Secondary School Admissions Policy, and the momentum of rising school district housing prices is being broken.
Guo Dong (a pseudonym), who lives in Shanghai’s Pudong district, recently received 5 or 6 sales calls from real estate agents every day, “sometimes early in the morning, before you wake up and be woken up by the phone. The first thing you need to do is to come up and say where there is another discount, a certain neighborhood out of a very cost-effective listings, the price can be negotiated and so on.” Compared to the owner’s tough attitude when looking at houses more than a month ago, Guo Dong felt that the school district houses in Shanghai had cooled down a bit.
From nervousness to hesitation real estate agents daily phone sales Guo Dong is a father of a child of more than 1 year old, considering that the child is still small, thinking to buy school district housing in a few years, but this idea was soon interrupted by the crazy rise in the price of school district housing. Since the second half of 2020, school district housing prices in Shanghai have been on the rise, with some of the more popular areas seeing large price increases. Guo Dong’s family also panicked and began looking around for a home. Just when they were considering getting a school district house, on March 16, the Shanghai Municipal Education Commission released the “Shanghai High School Admission Reform Implementation Measures”, of which the most noteworthy is the “quota allocation comprehensive evaluation of admissions” system, which will account for a total of 50% – 65% of the total enrollment plan of the city’s experimental model high schools. The most noteworthy of these is the “quota allocation comprehensive evaluation admission” system, which will account for a total of 50%-65% of the total enrollment plan of the city’s experimental model high schools. This policy, which is designed to promote balanced education, throws a pot of cold water on the hotness of the school district. As previously reported by CNN, a week after the release of the new policy on secondary school admissions, some owners who were in a hurry to replace their homes voluntarily lowered their offers. And the home buying group, represented by Guo Dong, started to become hesitant. Guo Dong told CNN: “After the introduction of the policy, all kinds of interpretations came out, many people think it will have an impact on the price of school district housing, after all, the wave last year rose too fast, are afraid to take over the high level. Our family feels that we can wait, after all, children are not anxious to wait for school.”
Guo Dong (a pseudonym) has recently received frequent calls from brokers to market the property, however, in the month following the introduction of the above policy, especially in the last two weeks, Guo Dong feels that real estate agents and owners are a bit anxious. “When viewing the property before, the owner’s attitude was tougher, there was little room for bargaining, and the broker said the price could not be negotiated much. But the broker calls received during this period of time, are saying where there are concessions again, so-and-so district out of the cost-effective listings, the price can be negotiated and other words.”
A suite down more than a million yuan agents said “who first loose sell who’s” Pudong Plum Garden area, the counterpart is Jianping West School, Fushan Foreign Language Primary School, Ice Plant Field Kindergarten and other quality schools, is one of the more popular school districts in Pudong. Because of the different number of schools, the neighborhoods in the area can be divided into single, double and triple school districts.
A list of properties for sale in Meiyuan Second Neighborhood is listed at a lower price Zhang Ping (a pseudonym), a broker at a real estate brokerage store in the Meiyuan area, told CNA that prices have dropped during this time, for example, a one-bedroom apartment opposite a double school district, which was previously priced at more than 7 million yuan, has now been reduced to 6.6 million yuan for one set. “In early March, the house is still more than 7 million, we told the landlord that the offer is too high, not good to sell, the landlord is also sincere to sell, and negotiated down.” Plum Garden Sixth Street is opposite the three aforementioned schools, and even the owners who own such properties have chosen to adjust their offers downward. Zhang Ping said they exclusively signed a double south, middle floor two-bedroom apartment in Sixth Street Place, with an area of about 52 square meters, currently quoted 8.08 million yuan, the listing price in March is still 9.2 million yuan, 9.1 million yuan. Moreover, the price can be negotiated again.
Is there a defect in the listing when the price is reduced so much? Zhang Ping said: “I guarantee that this suite has no defects in the property rights, the property license, account have a look. There is also a 51 square meters, 8.66 million yuan house in this district, why I do not recommend this set, is certainly the choice of cost-effective properties to customers.” Zhang Ping often in the circle of friends to release the company’s housing information, from the information released in the last month, from time to time, “cost-effective” “landlord urgent sale” “slow” and other words. Li Ming (a pseudonym) is also a real estate agent in the Meiyuan area, for the current market conditions in the area, he said: “Now it is the first to sell who is loose, you see three school district two rooms, there are hanging 9.2 million, 9.3 million, but it is not easy to sell ah. We sold a 9.05 million two-bedroom in mid-March, and now the actual transaction price of the same type is 8.2 million or 8.3 million. At present is a stalemate, the landlord also does not drop, customers also do not buy, the volume of transactions down.”
“We can deal (listings), is the landlord a little lower, not to say a lot lower, at least down to the level of October 2020, equivalent to this year did not rise it.” Li Ming said. Shanghai Minhang District’s Chunshen Block, an area with newer housing and a school district plus, real estate agent Sun Hui (a pseudonym) said that the price of a two-bedroom school district house in the area rose from more than 5 million yuan to more than 8 million yuan in 2020. China New Economy saw on the property trading platform that the listing price of an 85-square-meter two-bedroom house in the Lakeside Chenyun district of Chunshenjingcheng was 8.57 million yuan, Sun Hui said, adding that the owner’s listing price was 8.99 million yuan at the Spring Festival this year, which they later adjusted downward to 8.57 million after discussing with the owner. “There is still room for bargaining on this house, depending on how much can be negotiated. Comparing the same type of property in the district, there is currently one listed at 8.39 million yuan, which is almost 200,000 yuan lower than before.” Sun Hui said. The regulation frequently, the school district house can cool down?
Data: school district house According to Yan Yuejin, research director of the think tank center of the E-House Research Institute, the price of school district houses in Shanghai has recently loosened, at least once the policy is controlled, the price will loosen a little. Of course, it can’t be said that the relaxation is too much, after all, quality educational resources are there. He told CNN: “The recent regulation of the real estate market is still strict, which will more or less make such areas cool down. From a subsequent point of view, school district house prices may fall in the second quarter of this year.”
But he also pointed out that education resources include teacher resources, student resources, these resources if unbalanced, or easy to cause speculation. If the problem of uneven distribution of resources is not solved, the value of school district houses will continue to exist. Li Ming has been working in the Plum Garden area for many years, according to its observation, the control policy in the short term impact, “three or four months can rise a couple of million, can also reduce the price of a couple of million, but expect three or four years later the school district house price is lower than now, is not possible. I’ve been working in this area for several years, and that’s how I’ve come along.”
The school district housing market has been sought after for the past while and is a microcosm of the hot real estate market in Shanghai as a whole. Starting in the second half of 2020, the volume of new and second-hand homes in Shanghai has steadily increased, reaching a peak by the end of 2020 to the beginning of 2021. Data from the Shanghai Centaline Research Institute shows that in March this year, 10,338 new commercial residential units were sold in Shanghai and 39,407 second-hand residential units were sold, still maintaining a high level. Since the beginning of the year, Shanghai has continued to regulate policies, and on January 21, Shanghai issued “Opinions on Promoting the Stable and Healthy Development of the City’s Real Estate Market”, which regulates housing demand through a series of “combinations”, in which it is proposed that for couples who purchase commercial housing within 3 years of divorce, the number of housing units owned by them will be calculated according to the total number of units in the family before the divorce. On March 3, the Shanghai Housing and Construction Commission and three other departments issued the Opinions on Promoting the Stable and Healthy Development of the City’s Real Estate Market, proposing that newly-built commercial housing purchased under the priority home purchase policy may only be transferred after five years of the online record of the purchase contract. As for the performance of Shanghai property market in the coming period, Yan Yuejin predicted that the market will generally stabilize, especially for second-hand houses, which will subsequently cool down.
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