Title: Beijing’s Housing Prices Plummet, Sellers Face Historic Low
In a surprising development, Beijing’s housing prices have seen a drastic downturn, leaving sellers in what some are calling the most humble period in history. Second-hand houses in Beijing are being sold for significantly lower prices than the listing price, with some homes going for 1 million or even 2 million yuan less.
Real estate agents in Beijing are reporting that it has become commonplace for buyers to negotiate a price reduction of 1 million yuan when purchasing a house. This trend has put immense pressure on sellers, with some indicating that there is currently an abundance of houses on the market, giving buyers greater leverage in negotiating prices.
One buyer, identified by the pseudonym Lin La, expressed regret after discovering that a similar house in her community was being sold for 800,000 yuan less than what she had paid just a year prior. According to Lin La, many others have experienced similar price drops within a short span of time.
Real estate consultants and home buyers have noted that the transaction prices of houses in the same community and apartment type have dropped dramatically within half a year. For example, a three-bedroom apartment sold for over 13 million yuan in June, only to be sold for 10.8 million yuan in October, representing a drop of more than 2 million yuan in just four months.
Buyers have been pushing for price reductions of 10,000 to 20,000 yuan per square meter, indicating a significant shift in the market dynamics. Sellers have found themselves at the mercy of buyers, with negotiations often resulting in transaction prices that are significantly lower than the listing price.
Amidst this market turmoil, Maitian Real Estate reported that the listing price of second-hand houses in Beijing fell by 0.3% in November, and the bargaining space for second-hand houses expanded to the highest level in the year. The surge in the number of second-hand house listings has also broadened buyers’ choices, creating challenges for sellers looking to offload their properties.
This decline in housing prices is not unique to Beijing, with many cities in the surrounding area also experiencing significant price drops. Oversupply has been cited as a contributing factor, with a surplus of real estate projects leading to downward pressure on housing prices.
The market’s reaction has been mixed, with some homebuyers seeing the decline as an opportunity, while some sellers are concerned about the impact on their property values and potential negative equity. Overall, this widespread decline in housing prices is unusual and suggests that the real estate market is undergoing significant changes.
As the situation continues to unfold, all eyes are on Beijing’s real estate market and how it will navigate this historic low in housing prices.
Editor in charge: Fang Xiao