Chinanews client, Beijing, September 12 (Zuo Yukun) As for the impression of housing prices, are you still stuck in the "always rising"?
In fact, as the "housing to live without speculation" becomes more and more popular, the scale of the property market is tilting, and even some cities are beginning to worry about falling house prices and are formulating policies to limit the decline in house prices.
Data map: citizens pass by in front of a real estate.
Photo by China News Agency reporter Zhang Yun
Many real estate companies shouted: "House prices don't fall!"
Compared with the first-tier cities have upgraded their control policies to reduce the housing market fever, some third- and fourth-tier cities are facing "reverse" regulation.
On August 21, Yueyang, Hunan, issued a document stipulating that the actual transaction price of commercial housing sales should neither be higher than the record price, nor be lower than 85% of the record price, making it the first city to offer a "restriction order".
On August 31, Jiangyin, a county-level city in Jiangsu, also issued a document to the property market: prohibiting low-price (such as lower than cost price, price reduction in disguise, etc.) dumping and price wars, and resolutely putting an end to vicious competition, lowering of standards and quality, overdue delivery and other violations Illegal behavior.
The reason why Jiangyin’s "restriction order" has attracted attention is that it is an economically strong county, and the economic volume of a county-level city is even higher than that of many prefecture-level cities in the central and western regions.
Tangshan, Hebei Province is also attracting attention.
According to media reports, in mid-August, the Tangshan City Government interviewed the heads of 10 real estate companies in order to suppress malicious price cuts and maintain a healthy and stable market.
A year ago, Tangshan was still a hot city in the property market, and was interviewed by the competent authority because of the rapid rise in housing prices.
According to incomplete statistics from the agency, Shenyang, Heze, Kunming, Huizhou, Guilin and other places have issued similar "restriction orders" policies recently.
At the beginning of the second half of the year, the property market seemed to have undergone a sharp turn like a roller coaster.
Data map: A scene of the city.
Photo by Wang Xiaobin
Not "cannot drop", but "don't drop blindly"
Falling house prices should be a good thing in the eyes of many people, so why is it urgent to curb this situation?
A review found that most of the second-tier, third-, and fourth-tier cities that issued the “limitation order” for housing prices have experienced a continuous decline in property market transaction volume.
Taking Jiangyin as an example, according to data released by Jiangyin 510 Real Estate Network, in August, Jiangyin’s city’s commercial housing transactions were 975, of which 780 were residential housing, down 22.92% month-on-month.
On the whole, data from the Shell Research Institute show that under the continuous increase in regulation, the transaction volume of the 66 city new housing market continued to decline in August. In August, only the first-tier cities maintained a 20% increase in the transaction volume, and the second-tier, third- and fourth-tier cities had transactions. The volume is lower than the same period last year.
"The'drop limit order' directly corresponds to the increasing operating pressure of real estate companies and the deterioration of the market destocking environment. It is obviously not feasible to illegally compete through malicious price cuts." said Yan Yuejin, research director of the Think Tank Center of E-House Research Institute.
Yan Yuejin pointed out that it is understandable that real estate companies adopt the method of price-for-quantity in order to withdraw funds as soon as possible, but the idea of some real estate companies to fight a price war is worthy of vigilance.
Strictly controlling malicious price cuts does not mean that the government does not allow house prices to fall, but does not allow price cuts to interfere with market order.
"If a real estate company cuts prices disorderly, it may cause opposition from the owners, causing many new situations and problems, similar to the phenomenon of smashing sales offices. At the same time, if the real estate companies cut prices disorderly, it will interfere with the marketing order. Business development will have an impact."
In fact, the "restriction order" for housing prices is not new.
Every time the property market pulls back, there will be "price cuts" among developers.
In 2014, 2017, 2019, and other years, all cities have introduced similar restrictive policies, mainly in some third- and fourth-tier cities.
Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, pointed out: “If the price limit is not implemented and developers are allowed to reduce prices, it may cause bad money to drive out good money. The worst quality projects will first start marketing strategies to make prices fall even more. It’s not fair if it’s great, but it’s not good quality."
"Secondly, developers who acquired land early and with lower land prices can withstand a larger price drop. For many developers who have recently acquired high-priced land and have made great contributions to local public service facilities, it is not. Fair." Li Yujia said.
In the opinion of industry analysts, the "restriction order" prevents house prices from rising and falling sharply and promotes the healthy development of the real estate market.
The current property market has entered an era of two-way regulation. The basic tone of "stabilizing housing prices, land prices, and expectations" is "stabilizing" to prevent large rises and prevent large falls.
Are house prices in your city going up or down?
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