Since the second half of the year, the property market has faced greater downward pressure. Not only is there a growing number of cities that have issued a "limit down" order, but there has also been a spurt of work-for-hire houses (engineering mortgages) around the country.
Since November, a number of places continue to introduce housing prices "limit down order". November 1, Hunan Yongzhou City Zuling District Housing and Urban-Rural Development Bureau issued a "notice on the strict prohibition of low-priced dumping", said the real estate development enterprises shall not be any reason to privately low prices (such as below-cost prices, disguised price cuts) and other dumping disruptions The district's normal order of real estate, or will be punished in accordance with the law.
21 cities limit fall
Previously on October 12, Yongzhou first "limit fall order" introduced. Yongzhou City under the jurisdiction of Dong'an County Housing and Urban-Rural Development Bureau for some real estate enterprises to take a substantial price reduction in sales and significantly lower than the normal price of the market sales of new commodity housing phenomenon, issued a "notice on strengthening the management of new commodity housing sales".
A circular issued by the Liaocheng Housing and Urban-Rural Development Bureau in Shandong province this month showed that a brand-name property's price-cutting promotions triggered complaints from old owners, and was eventually called off for rectification. At the same time, the briefing also emphasized that other companies should take warning and exercise strict self-discipline.
Zhenjiang under the jurisdiction of the Yangzhong City Construction Real Estate Industry Chamber of Commerce recently issued an initiative, including the newly opened housing not less than 85% of the record price of sales, in the sale of buildings on the same floor, the same type of transaction price is not less than 95% of the average price of the transaction in the previous quarter.
According to the incomplete statistics of the first financial reporter, up to now, there are 21 cities across the country have issued a "limit down order". Some of these cities are directly issued administrative orders, and some are through interviews with real estate enterprises to limit malicious price reductions, otherwise they will not be given the net signature approach. These cities include Shenyang, Yueyang, Kunming, Tangshan, Jiangyin, Ezhou, Zhangjiakou, Zhuzhou, Yongzhou and so on. Except for individual cities such as Shenyang and Kunming, the vast majority are third-, fourth- and fifth-tier cities.
58 Anju Rooms Property Research Institute Branch President Zhang Bo analyzed to the first financial reporter, the current introduction of the "limit down order" of the city is mainly in the third and fourth tier cities, compared to the first and second tier cities, the third and fourth tier cities, especially some of the region is cooling down faster, and real estate enterprises to speed up the willingness of these places to ship out strong, through Significantly adjust the sales price of the way to ship more phenomena, so these cities "limit down order" more. And most of the first and second-tier cities mainly in the credit and other aspects of some adjustments, the market will gradually return to normal, do not necessarily need to "limit down order".
"Work against the house" discount
On the other hand, in the case of the property market downward pressure, the current market "work against the house" discount sale news frequently. Not only in the third and fourth tier cities, including Guangzhou, Xiamen, Chengdu, Nanjing and other first and second tier cities appeared a lot of "work against the house".
For example, in the first-tier city of Guangzhou, some media roughly counted that the number of properties launched in Guangzhou recently reached more than a dozen, and the project is located in Zengcheng, Nansha, from the suburb of the suburban lot, as well as the main city like Liwan. Prices, light discount hundreds of thousands of dollars, or millions of dollars.
"Work against housing housing ...... due to the engineering company's urgent need to return to the capital, the special batch of 30 sets of jumping a bite price of 3.7 million / set up!" In October, Agile in Liwan Baigutan new opening less than a year of luxury residential projects - Agile Sky 715 launched the work against the house widely concerned.
In Xiamen, in October this year, a project in Haicang District launched 30 sets of 118 square meters of work against housing, the unit price of 25,000 yuan / square meter from. The previous average price of this project was 33,000 yuan per square meter.
Zhang Dawei, chief market analyst of Centaline Real Estate, analyzed to China Business News that for some developers, "work-exempted housing" is equivalent to commercial paper in disguise. "Work against housing" is mostly slow-selling floors, housing, for developers, on the one hand, you can put some of the bad type, not good selling products, selling clearance. Equivalent to clear invalid inventory, on the other hand, to a certain extent, also alleviate the financial pressure. But for the builders, also can only take this kind of house, otherwise can not get money. But this also to a large extent squeezed the profits of the real estate chain of related enterprises.
Zhang Bo told reporters, "work against the house" blowout mainly for two reasons, one is the developer's cash flow pressure is relatively large, so the progress of the project payment is relatively slow, and some of the project payment can not be paid on schedule, in this way, the construction side will need to developers to provide some of the house as a corresponding mortgage. This phenomenon is more common in the past two years, so there will be a large number of "work against housing" out. But the builders don't need so many houses, they also need to realize the cash.
Zhang Bo analyzed, another reason is that some of the real estate companies to launch the product itself is not necessarily "work against the house", but ordinary commercial properties for sale, in order to recoup capital, to adjust the price, but afraid of the old owners to form a big backlash, which will also be in the form of this "work against the house". The "work for the house" in the name of sales, which is a kind of disguised price reduction promotional behavior.
Additionally, although the discounts for "work-credit housing" are very low, they are not real. Many developers use the gimmick of "work-credit housing" to attract customers, and often wait until the scene to find that the housing stock is gone, but the developers have achieved the purpose of attracting customers.
Recently, some local real estate enterprises have been investigated and dealt with for using the "work against house" price promotion. on October 3, Xuzhou City, Jawang District Market Supervision Administration issued a notice of correction, requiring a real estate development in Jawang to stop promoting the price reduction in the name of "work against house.
The market supervision authority of Jawang District, Xuzhou City, issued a notice of correction, requiring a property development in Jawang to stop publicizing the illegal act of selling commercial properties at reduced prices in the name of "work-exempted houses", and the development will resume sales at the original market price.