Home prices in some mainland cities have fallen over the past year, with the largest drop reaching 46.9%, and prices in Tianjin, a mainland municipality, have fallen by more than 20% from their peak values.
The Institute of Financial and Strategic Studies of the Chinese Academy of Social Sciences recently released the China Housing Big Data Analysis Report (2020), which shows that from October 2019 to October 2020, there are nine cities with annual house price declines of 5% or more, with the highest annual decline of 9%.
The trend of falling home prices in some cities is even more pronounced when compared to the historical peak of home prices. According to the monitoring of the Latitude Housing Index, from the historical high point of house prices in each city to October 2020, 20 cities had a decline of 10% or more from the peak house prices, with 9 cities having an adjustment of 15% or more from the peak house prices.
The nine cities include Langfang (-46.9%), Qingdao (-22.8%), Tianjin (-21.8%), Zhaoqing (-19.3%), Shijiazhuang (-18), Haikou (-17.8%), Jinan (-17.5%), Beijing (-15.8%), Xishuangbanna (-15.4%), Baoding (-13.8%), Beihai (-13.2%), Zhengzhou (-13.1%), and Zhongshan (-11.9%).
Langfang in Hebei was the city with the highest rate of downward adjustment, at 46.9%, and Tianjin, a municipality directly under the Central Government, fell by more than 20% compared to the peak.
Most of these nine cities are located in the northern region, and are dominated by Beijing, Tianjin and Hebei cities.
The historical highs of housing prices in these cities basically occurred in 2017, according to a report by the mainland’s National Economic Strategy.
Some third- and fourth-tier cities also saw a significant drop in home prices, the news said.
As for the reasons for the drop in house prices, the report said that in 2017, Beijing and the Beijing-ring area introduced the strictest property market regulation in history. Under the pressure of property market regulation and control comparable to that of first- and second-tier cities, housing prices in the Beijing-ring property market have fallen significantly. And the third and fourth line cities house prices fell because of the lack of support energy of shanty monetization, before the third and fourth line cities house prices rose mainly thanks to the promotion of shanty monetization, but in 2020, the scale of shanty reform on the mainland has been significantly cut, the vast majority of provinces are basically close to the end.
Commentator Wen Xiaogang believes that the drop in house prices is attributed to regulation is a bit of a generalization, the same regulation, why other cities house prices have not fallen so sharply, these cities house prices fell mainly between October last year and October this year, and this year by the plague, the mainland economy is still slowly recovering, there are nearly 100 million people unemployed, which there is still money to buy houses, the key reason is the economic downturn The key reason is the economic downturn. The third and fourth-tier cities is one side, but because of the economic downturn, young people have gone out to work, people have left, the house naturally less people buy.
For the view that housing prices have fallen, there are mainland netizens who do not agree.
Netizen “Zhang Qingjie” said: “up when doubled up, down so little can be called down.”
Netizen “love to fight” also said: “up when tens of percent, down only a few percent of points,…… haha!”
There are also netizens who reveal the miserable situation of the local people leaving the building empty.
“Bubble Man” said: “Zhongshan many townships last year (per square meter) to 20,000 to 15,000 six, this year it? 9 head 8 head or even 7 head (9,000, 8,000, 7,000 yuan a square meter), each village an industrial park can not see a few factories open, there are not many people on the street. “
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