The property market in Suzhou, Jiangsu province, remained hot in 2019 and was reported to be falling towards the end of the year. Suzhou is one of the top 10 cities with GDP in China and is known as the “strongest prefecture-level city”.
Second-hand houses in Suzhou fell by 4,240 yuan
The latest data on the listing and transaction prices of second-hand houses in Suzhou shows that from July 2019 to November 2020, the listing price of second-hand houses in Suzhou fell from 28,619 yuan to 24,379 yuan per square meter, a drop of 4,240 yuan, or 17.3 percent. The price of a second-hand house in Suzhou fell 1,747 yuan, or 6.8%, to 25,737 yuan per square meter from 27,484 yuan. Based on an average of 100 square meters per suite, the decrease of 4,240 yuan is equivalent to an average depreciation of more than 420,000 yuan per suite in Suzhou.
According to a report by CCTV Finance and Economics on December 31, residents and real estate agents in suzhou’s old city neighborhood have reported that the listing and transaction prices of second-hand houses will drop in 2020.
Real estate agents in Suzhou’s Gusu district, Jiangsu province, said housing prices were now cheaper than at the beginning of the year. For example, a well-decorated house in a community was selling for 25,000 yuan per square meter in the spring of this year (2020), but now it is selling for 24,000 yuan per square meter.
Real estate agents in suzhou’s donghuan neighborhood also said there will be a drop in the price of second-hand homes in 2020.
Property agents in Wuzhong District in Suzhou, Jiangsu province, said landlords in the East Ring district have cut prices more, from about 29,000 yuan per square meter to about 27,000 yuan per square meter.
Real estate agents said that prices of houses in popular school districts are still rising, but non-school districts, including Gusu District, Wuzhong District, industrial park and other areas, have dropped to varying degrees.
According to HOME LINK data, the listing price of second-hand houses in suzhou in 2020 showed a trend of monthly decline, dropping from nearly 28,000 yuan in February to more than 24,000 yuan in November.
In addition, in 2020, the volume of second-hand housing in Suzhou is much colder.
Yan Yuejin, research director of e-House Think tank Center, said the number of deals in November 2020 was 5,965, and in 2019 it was nearly 13,000, almost half the 2019 peak.
Sales of new buildings are cold
Suzhou had a very hot property market in 2019, and its heat once ranked among the top cities in China. In 2020, not only the price of second-hand houses fell in Suzhou, but also the sales of new houses.
At a new development in Suzhou’s Xiangcheng district, a staff member at the sales office said there are now many preferential policies for buying a house, such as the down payment, or payment in installments, as well as preferential prices.
A property consultant for a new property in Suzhou, Jiangsu province, said the price is nearly 400,000 yuan cheaper than the record price.
As for the recent phenomenon that some new real estate projects in Suzhou have launched preferential activities in different forms, market participants said that it is normal for developers to carry out discount promotion at the end of the year in order to achieve performance, but in 2020, new house discount will be more intense, special room, fixed price, free property price and other hidden price cuts are not rare. In addition, and many cities, Suzhou, part of the plate also exists second-hand housing prices hang upside down phenomenon.
According to data from research institutions, the average transaction price of new commercial residential buildings in Suzhou this year is 26,294 yuan per square meter, and the supply of new houses is 86,851 units, while only 64,649 units are sold. The situation of supply exceeds demand obviously.
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