[Epoch Times November 14, 2021]According to data, the transaction volume of Beijing’s second-hand housing market has declined for 7 consecutive months. Some real estate intermediaries pointed out that the recent decline in transaction volume and prices in Beijing’s second-hand housing market is related to official policies. In addition, the recent frequent occurrence of defaults by real estate companies has also aggravated the wait-and-see sentiment of the market.
“China Times” reported on November 13 that Centaline Real Estate Research Center recently released data that in October 2021, the number of online second-hand housing in Beijing was 9,340, a year-on-year decrease of 35% and a month-on-month decrease of 25.7%.
It is worth noting that this is the seventh consecutive month that the Beijing second-hand housing market has seen a decline in online signing, and it is the first time this year that it has fallen below 10,000 sets.
The industry believes that there are many reasons for the cold in Beijing second-hand housing. New policies such as guidance prices have caused high-priced school district housing to usher in shocks, and the tightening of credit has also made it more difficult for buyers and sellers to make transactions. At the same time, the recent frequent occurrence of defaults by real estate companies has also aggravated the wait-and-see sentiment of the market.
A real estate agent in Xicheng District said, “The decline in the number of second-hand housing network signings is related to many factors. This year, Xicheng School District and Haidian School District houses have undergone major adjustments in prices and other aspects. Buyers and sellers are not willing to deal with transactions. .”
According to data released by the Statistics Bureau of the Communist Party of China, in September 2021, the price of second-hand housing in Beijing fell by 0.2% month-on-month. This is the first time that the price of second-hand housing has fallen in Beijing this year.
In October, the price of second-hand housing in Beijing still did not show a correction. According to data released by Centaline Property, in October 2021, the reference price of second-hand housing in Beijing has fallen for two consecutive months, and the housing prices of 13 areas including Xicheng, Chaoyang, and Haidian have all fallen month-on-month.
In the view of real estate agent Huang Jia (pseudonym), recent Beijing second-hand housing market transaction volume and price corrections are not unrelated to credit policies and school district housing policies.
Haidian, a popular housing area in the Beijing School District, has implemented a second-hand housing price guidance mechanism since October 8, and has issued guidance prices for 29 communities including Hummingbird Homes. It is understood that the price of housing in the popular school district in Haidian has dropped by more than 20%.
According to monitoring data released by the Shanghai E-House Real Estate Research Institute a few days ago, in October 2021, the transaction volume of second-hand housing in 13 hotspot cities in mainland China was about 36,000 units, a decrease of 14,000 units from the previous month and a decrease of 26.9% from the previous month. Compared with the same period last year, it dropped by 42.8%.
It is worth noting that the recent frequent occurrence of defaults by real estate companies has also aggravated the wait-and-see sentiment of the market. In addition, the “three red lines” and “centralized land supply” policies introduced by the authorities in the past two years have increased the pressure on funds for real estate companies, and the industry has frequently experienced lightning explosions.
Due to debt entanglement, mainland real estate companies have recently experienced a wave of large-scale bankruptcies. According to incomplete statistics from Time Weekly, as of September 5 this year, a total of 274 real estate companies have issued bankruptcy documents. On average, about one real estate company goes bankrupt every day.
Professor Xie Tian from the University of South Carolina School of Business told The Epoch Times that the mainland property market has entered a dead end. Whether it continues to rise or fall, it may trigger a financial crisis. Therefore, the so-called “second-hand housing guidance price” was introduced to try to limit housing prices within their own control.
Xie Tian said: “If the CCP really considers people without housing, it should open up the market and let the market’s regulation mechanism work to determine housing prices instead of continuing to control housing prices.”
Editor in charge: Li Bing#
.