Lose more than a million, stick to or leave the market? Pain and reflection after the collapse of the myth of housing prices in Yanjiao | Real Estate Geography
It is difficult to sum up Yanjiao in one word.
Beijing’s sleeping city, the real estate market, and the heartbreak of real estate speculators. In the ups and downs of the Chinese real estate market, Yanjiao has been labeled with many labels, all of which are related to houses.
As Yanjiao was, the old residents here seemed to be quietly wiped out under the torrent of housing prices.
On winter nights, the street lights are on, and the shabby old town of Yanjiao is alive.
The heat from the sewers rushed toward the bustling flow of people, and the narrow two-way roads tore apart the true corner of this piece of land.
This is not Beijing, but a small town in Sanhe City, Langfang, Hebei.
The old city with disorderly planning is surrounded by modern commercial houses. Standing on a five-story building and looking out, there are entangled wires and a shopping center like a county supermarket.
A mini basketball court and several fitness equipment carry all the entertainment for the teenagers and the elderly.
Wang Qiang, with a strong Northeast accent, said that he was a "from Yanjiao".
After leaving his home in Northeast China, he opened a mini-mart on the corner of Beijing, where business was deserted.
Occasionally, he would run across the city to rent out waves of young people to Beijing. When night fell, he would sink into the traffic and move back to Yanjiao, sometimes taking three hours.
When talking about housing prices, Wang Qiang first showed a careless wry smile, and then there was a long silence.
Five years ago, when the property market in Yanjiao was booming, Wang Qiang entered the market as a just-needed one, and then watched the house price decline all the way after the regulation, and the house in his hand has not returned to its original value.
He was only fortunate that he didn't increase much leverage at the beginning.
The real native Yanjiao people have become demolished households holding a few houses, and some live in the old city awaiting improvement and replacement. Their numbers are far behind the scale of the migrant population.
Beidiao, rented out and temporarily settled down, has become the largest group in Yanjiao, and regards it as a "post" to Beijing.
The complex group composition makes a magical sense of tearing overflow in Yanjiao.
Standing in the middle of the road in the old city, there is a takeaway guy flying by every few seconds, which is not like an ordinary town.
There are also bars, nightclubs, script kills, light food shops... things that young urban people like can be found here.
In fact, even if housing prices are cut in half, Yanjiao is still a "dream-making place" for many northern drifters.
At midnight, the roar of car motors will still reverberate in Yanjiao. Groups of young lovers roar past on motorcycles, blending into the neon lights.
These new forces provide more possibilities for Yanjiao, which has lost the "myth" of housing prices.
The myth is shattered
The reason why Yanjiao is special lies in its geographical location.
Songzhuang, Tongzhou, where the epidemic has recently occurred, is located in the east of Beijing. If you walk five kilometers east, you will come to the famous Chaobai River.
When the weather is clear, the gurgling water of the Chaobai River is dark blue. One side of the river is Tongzhou, and the other side is the junction of Hebei and Beijing-Yanjiao.
If you walk, an adult can "cross" from Beijing to Hebei in five minutes.
The boundary signs between the two places were overwhelmed by the flow of large trucks and buses.
Stepping into Yanjiao, a large-scale commercial city and super community began to appear in this small town.
In the trade city, clothing wholesalers and retailers gather, and densely packed shops are surrounded by Taobao's seasonal fashion clothing, live broadcast equipment, and express boxes.
Many northeastern girls started the "Beijing Dream" here, relying on the flow of super-large people overflowing from Beijing to save their first pot of gold.
These northeastern girls, as well as the larger number of North Drifters, also support the crazy real estate market in Yanjiao.
Close to the Chaobai River, the large community "Ouyi Waterfront" casts a sparse reflection on the river.
As early as 2013, Ouyi Waterfront opened for sale at an average price of about 10,000 yuan. At that time, a house on the other side of the river in Tongzhou was sold for 30,000 yuan.
The geographical location close to Beijing and the low real estate prices made many Bei Piao see the hope of settling down homes, turning around and rushing to Yanjiao.
Li Wei, who works in Beijing, was moved.
At the age of 23, she was already considering getting married with her boyfriend, but the high housing prices in Beijing discouraged them.
Half yearning and half helpless, Li Wei decided to put the two major tasks of work and buying a house in Yanjiao.
She and her boyfriend had their first home here when the house price in Yanjiao was still ten thousand.
What happened next made Li Wei dumbfounded.
In 2016, Yanjiao's housing prices started a frantic increase. When the last building of Ouyi Waterfront was sold, the average price had soared to more than 20,000.
This is not the most exaggerated. According to Li Wei, it was really "one price per day" at that time. If you don't order popular real estate today, the price will increase by one or two thousand tomorrow.
In addition to Li Wei, who is just like the North drifter, there are also many speculators who support the rising housing prices in Yanjiao.
Under the influence of the hot real estate market, the "backyard" of home buyers in Beijing, and the speculation of developers, they used leverage to stock up on houses in Yanjiao, hoping to make a fortune from the concept of the real estate market in Beijing.
The small town of Yanjiao has also begun to "transform" with the help of funds.
The most exaggerated and typical project is Seoul Sweet City.
After the "September 30 New Deal" was introduced in Beijing, many young people in Beidiao lost their qualifications to buy houses and moved to Yanjiao. Housing prices in Yanjiao increased from 15,000 in 2015 to 30,000 in 2016.
The sweet city of Seoul is even more exaggerated. When some houses went on sale in 2016, the price was as high as 40,000 and almost sold out.
Seeing this situation, Li Wei was ready to move again and bought a second house when the Yanjiao property market was booming. The average house price was approaching 30,000.
She thought that she could make a fortune in the hot market.
Unexpectedly, the next plot took a turn for the worse.
In 2017, when the Yanjiao property market was almost irrational, Langfang City successively implemented stringent control policies.
On June 3, Langfang City introduced a new house purchase policy. The foreign household registration requires a 3-year social security or tax payment certificate, and the purchase is limited to one set, and the local household registration is limited to two sets.
The Yanjiao property market, which is part of the "three northern counties" of Langfang, has been directly affected by the policy.
"At that time, I wanted to spend money on Yanjiao Social Security, but it was not easy to get it." Li Wei said.
In this way, many people working in Beijing lost their qualifications to buy houses in Yanjiao overnight.
This round of purchase restrictions in Langfang has directly affected the real estate companies in Shigekura Central Beijing, such as China Fortune Land Development.
The story of crazy housing prices in the Yanjiao property market has since fallen into the altar, and has not recovered until today.
According to Anjuke data, the average price of second-hand houses in Yanjiao in December 2021 is 18,722 yuan per square meter. The listed prices of many popular communities are less than half of the original price.
The second house that Li Wei bought was also in the bottom of this round of price declines.
The once-hot project, Sweet City, Seoul, waited lonely for someone to "save" after housing prices in Yanjiao were cut in half.
In late December, the reporter saw in the southern district of the third phase of the Sweet City in Seoul that this long-established bungalow project welcomed customers in twos and threes.
The old red walls and interior decorations that have long been out of fashion are no longer the moment when they were sold for 40,000.
Discontinued supply
The collateral effects of falling housing prices can be found in many corners of Yanjiao.
Walking in the old city of Yanjiao, the European-style retro buildings are across the street from the "people's bathhouse". The existence of two different styles reflects the crazy era that this small town once had.
What's more noticeable is that every few steps you can see the decoration companies, these stores that used to take advantage of the hot property market, now many businesses are deserted and few people visit.
Li Wei bought the high-end apartment, and now the average second-hand price is still hovering around 20,000 yuan, and the total value of the house has shrunk by more than 30%.
She tries not to think about these things as much as possible, and pays back the monthly energy supply, as long as the days pass.
However, some people cannot accept the magnitude of the decline in housing prices in Yanjiao, let alone the intensity of the monthly mortgage, and then choose to cut off the supply.
Zhang Jing is one of the people who "abandoned the house" and left the scene.
In 2016, Zhang Jing bought a house in Oriental Hawaii and applied for a loan at the Yanjiao branch of China Construction Bank, Langfang. The total loan issued by the bank was 1.645 million yuan, and the loan period was October 24, 2016 to October 24, 2046. , Zhang Jing also provided mortgage guarantee with the real estate.
After the loan was completed, Zhang Jing repaid the loan on time for three years. However, starting from September 2019, the loan was overdue. After January 21, 2020, Zhang Jing has not repaid the loan.
Due to the failure to repay the principal and interest in time, the bank has repeatedly called for the collection, but Zhang Jing still failed to perform the obligation to pay off the arrears in a timely manner.
Generally speaking, according to the requirements of the loan contract, if the buyer fails to repay the principal and interest of any period of loan on time and in full, the bank can take measures such as collecting penalty interest, compound interest, and announcing that the loan principal and interest are partially or fully due early.
Not only that, in the event of a supply break, all relevant loan principal and interest (including overdue and misappropriation of penalty interest and compound interest), liquidated damages, damages, costs for keeping the secured property and realizing mortgage rights, and possible litigation costs , Attorney fees, auction fees, sale fees, and borrower notification fees, etc., all need to be borne by the purchaser.
In addition, due to the mortgage registration of the real estate, if the buyer fails to perform the debts on time according to the court's judgment, the bank has the right to auction or sell the real estate with the priority of the value of the real estate for compensation.
On July 28, 2020, after the court filed a case on the financial loan contract dispute between the bank and Zhang Jing, the court opened a hearing. The bank appointed an agent ad litem to attend, but the defendant Zhang Jing did not appear in court to participate in the lawsuit.
In the end, the court ruled that the house purchase loan expired immediately. Within ten days after the ruling became effective, Zhang Jing had to repay the bank loan principal of 1,578,700 yuan, interest of 58,000 yuan, and a penalty interest of 1,700 yuan, totaling 1,638,300 yuan, and the payment was made on June 12, 2020. From the date to the date when the principal of the loan is paid off, all interest and penalty interest incurred.
"Oriental Hawaii first opened in 2002 with an opening price of around 6,000 yuan. People who bought at an average price of a few thousand did not break the supply. The recent cases of supply breaks are all second-hand houses bought in the past two years, which have stepped on the Yanjiao property market. The high point of the increase. Now the average price of this community is more than 20,000 yuan, which is more than 30% less than the high point." Someone familiar with the local property market said.
Walking on Yanjiao Street, Eastern Hawaii is a unique landscape. The European-style small bungalows are in sharp contrast with the "Hegang Bald Barbecue" across the street.
However, the similarity is that the barbecue restaurant has been locked, and Oriental Hawaii has also become a pain in the hearts of some buyers or speculators in the process of falling housing prices in Yanjiao.
Recently, some netizens reported that they bought a house in Yanjiao for 4.26 million in 2017 and paid back 160,000 principal and 640,000 interest in four years. Now the house has fallen to 2.35 million in the second-hand market, so he chose to cut off the supply.
The house bought at the time of 4.26 million has now shrunk 1.91 million in book value, plus 640,000 in interest and attorney fees, which has resulted in a loss of more than 2 million.
It can be seen from these cases that it is not as simple as letting the bank take over the house. Aside from the principal and interest and fines that should be repaid, if the house is auctioned, the proceeds will still not cover the mortgage, and the buyer still has to carry it. A debt.
Restrictions on purchases released?
Although housing prices fluctuate, we need to see that there are still a steady stream of young people pouring into Yanjiao.
Zhang Qing, born in the 90s, worked as a salesman in Beijing. Recently, she was considering buying a house in Yanjiao.
"Many intermediaries say that there is no restriction on purchases in Yanjiao. I want to take a look. I want to buy a new house with an average price of about 20,000 yuan, and pay it back with my boyfriend. If I rely on my monthly salary of 9,000 yuan, I want to buy a house in Beijing. , There is no possibility in the short-term or long-term."
Coincidentally, Liu Li, who works in an institution in Beijing, also came up with Yanjiao's idea.
Although she has no worries about the qualifications for buying a house in Beijing, there are also many work benefits, but the low and stable salary still makes her feel that buying a house in Beijing is a bit difficult.
Unlike Zhang Qing, she doesn't want to settle in Yanjiao for a long time, she just wants to use it as a temporary residence and "springboard".
Zhang Qing and Liu Li, who do not have local social security, both turned their eyes to Yanjiao. Are the purchase restrictions really loose?
According to several local real estate consultants and real estate agents, the purchase restriction on new houses in Yanjiao will be lifted in 2020, and second-hand houses will also be added in 2021.
Affected by the general real estate market environment, most home buyers wait and see in the second half of the year, but the property market in Yanjiao has gradually warmed up recently.
However, Sanhe City Housing and Urban-Rural Development Bureau told reporters that buying a house in Yanjiao requires three years of local social security, and there is no official document regarding the lifting of purchase restrictions.
"Maybe it was their intermediary who promoted it themselves."
Although rumors of the release of purchase restrictions have appeared frequently and have been repeatedly denied, there have indeed been some "transitions" in the new housing market in Yanjiao.
When the reporter visited many projects in Yanjiao, he found that those houses under the name of "subway houses" would still be popular.
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The Fucheng·Xiyueli project located next to the Yanjiao Botanical Garden is crowded with people from the sales office on weekends, and it does not mean that it is deserted.
Every few minutes, the sales department’s lobby will broadcast transaction information and the sound of smashing golden eggs.
When discussing the issue of purchase restrictions, the property consultant said that anyone who works in Beijing can buy it without local social security. “Many customers come from Beijing”.
One of the reasons why Xiyueli has received attention is the price lower than the price of competing products in the market, and even lower than the average price of the surrounding second-hand houses.
The developer's more exaggerated point is that Xiyueli is adjacent to the already started Yanjiao Metro Line, and one kilometer from Yanjiao Chaobai Street Station.
The reporter saw at the scene that apart from a few capped buildings in this area, other supporting facilities are still under planning.
Traffic has always been a headache for people in Yanjiao. Although there are special buses that go directly to Beijing, the huge flow of people has aggravated the negative feelings of commuting.
Under the epidemic, this problem is particularly prominent.
Entering Beijing requires nucleic acid and border checkpoints, so hospitals in Yanjiao often have long queues. After workers get the report, they embark on a long commute.
The Yanjiao subway plan gave them hope to a certain extent.
On June 26 this year, the Hebei section of Beijing Rail Transit Line M22 officially started construction. There are 4 underground stations: Yanjiao Station, Shenwei Street Station, Chaobai Street Station, and Gaolou Station. The construction period is from 2021 to 2025. Yanjiao It is expected that people entering Beijing by subway will become a reality.
If the subway opens as scheduled, will the Yanjiao property market usher in spring?
What is certain is that the era of crazy housing prices is gone forever. The limited population carrying capacity, education and medical facilities need to be improved, and the absence of the golden sign of Beijing’s “hukou” will make Yanjiao’s housing prices more rational. Find a reasonable positioning based on its own regional value.