The first half of the year was disastrous, but the second half of the year saw an influx of buyers as the epidemic eased and recovered quickly, while new marketing models emerged from the urging of digital networks.
The Shanghai Securities News reported that a senior industry player lamented the changes in the housing market in 2020: “Last year’s housing market was more like the A-share market, with construction projects in hot cities being highly sought after and marginal products in non-hot cities being less sought after.” . If you were to use one word to describe the housing market in 2020, what word would pop into your head? Most builders say “momentum”, some say “divergence”, and some say “sultry”. Admittedly, the housing market last year was a little less sluggish compared to the soaring housing market of 2016. However, the housing market last year was more resilient and stable after the past surge.
However, last year’s housing market also saw significant changes, especially in the marketing model. When the flood of digitization to this traditional industry, nearly 90% of real estate companies choose to “embrace” the new trend of live home sales. And the old reform allows the “silver age” of the builders to find a new point of growth.
Benefit people’s livelihood housing market course clear
The central policy of the Communist Party of China clearly set the tone of “housing issues are related to the well-being of the people”, real estate is no longer just a tool to stabilize growth, but should be the grasp of the people’s livelihood. Obviously, the “course” of the housing market in the new year has been clearly outlined.
On the other hand, the builders actively “hoard food” to take another part of the land is to urban renewal, old reform projects as a cut-off, “detour” to seek “replenishment” of the popular city opportunities. According to Kerry data, the first quarter of last year, nearly 70% of the top 50 builders involved in urban renewal business, and Shenzhen, Guangzhou, Shanghai and the builders layout of urban renewal, old reform projects “heavy town”.
Debt reduction of builders to increase the code of old reform
The most important news in the mainland housing market last year was that the “three red lines” for builders’ financing were like a “watershed” that split the land market in two in the post-epidemic era. From April to August this year, builders had a “window of opportunity” to acquire land, with the top 50 builders investing more than 300 billion yuan (RMB) in a single month. But after September, the monthly investment amount of builders plummeted to 200 billion yuan to 300 billion yuan level.
It is revealed that, under the influence of the “three red lines”, the builders will also increase the code of urban renewal and old redevelopment projects in an effort to “reduce debt”. The old reform project volume is large, the situation is more complex, from the acquisition of land to sales development cycle is long, which involves capital occupation, builders can not take the traditional high turnover model.
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