At present, China’s real estate market presents a situation of ice and fire: the average price of real estate in first-tier hot cities reaches 60,000 to 70,000 yuan per square meter, while the price of real estate in some cities falls to “cabbage price”. For example, in Ordos, the price of real estate drops from more than 20,000 yuan per square meter to 3,000 yuan per square meter. Liaoning Fuxin 56 square meters of second-hand housing only 20-30 thousand; Hegang, Heilongjiang province, 40,000 to 50,000 yuan can buy a commercial housing.
According to the statistics of Southwestern University of Finance and Economics, the vacancy rate of housing in China’s first and second-tier cities is 20%, far exceeding the international warning line of 10%, while the vacancy rate of housing in third-tier and fourth-tier cities is 30%. In three cities, ordos, Fuxin and Hegang, the vacancy rate is likely to be at least 40 per cent.
According to Zhang Ping, one of China’s leading financial commentators, ordos has been dubbed a “ghost town” by the media for entering kangbas with few people, more sanitation workers than passers-by, and fewer than 20 per cent of the buildings in the area lit up at night. The cities of Hegang and Fuxin are no better than Ordos, with many new developments simply unsellable and empty blocks of flats.
In addition to the above three empty cities, there are also some famous small empty cities in China, which are built in the vicinity of second and third-tier cities, such as Zhengzhou New City and Changzhou New City, etc. After the local construction is completed, few people go to live there, so they are left empty there.
Why on ordos, hegang, fuxin city housing prices will write “bargain”, zhang ping said, first of all, such as ordos, hegang, fuxin, the three cities are basic resources city, started with the past depend mainly on coal, natural gas and coal dig out later, cause was poured into the local population began to massive outflows. Due to the lack of employment opportunities, even the young local people have to go to the nearby big cities to work, some of them go south to Jiangsu, Zhejiang, Guangdong area to make a living. A long-term net outflow of people is the main reason for the prolonged slump in house prices.
Second, cities like Ordos, Hegang and Fuxin tend to be saturated with local demand due to cheap housing and frantic construction by local developers. In these cities, many families own three or four homes, so the demand for homes is low.
Third, in cities such as Ordos, Hegang and Fuxin, housing prices are very cheap, with tens of thousands of yuan for a flat. Almost every family in China can afford such a house. But not many people want to live long. Young people are moving to big cities like Beijing, Shanghai, Guangzhou and Shenzhen. The local elderly feel that the cost of living in these cities is higher than that of county towns, and the resources (such as education, transportation, medical care, etc.) are not as good as those in big cities, so it is more comfortable to live in county towns. Empty houses, these cabbage-priced houses can’t go up.
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