20 percent or even as low as 50 percent off the sale price, this is not a clearance of seasonal clothing, but the reality of March sales of some apartment buildings in Changsha. Under the heavy pressure to change, the original price changed significantly.
The first shot of the Changsha apartment market “price reduction” is the Xinliboyuan apartment. March 10, “the east bank of the Xiangjiang River, inside the second ring, riverview apartment, a total price of 300,000, big developers bloodletting price 6,888 yuan/square……” Such marketing slogans appear in real estate agents’ WeChat, Douyin accounts, and some buyers can even receive one-to-one “warm tips.”
In the video forwarded by Li Bo, a citizen who successfully purchased an apartment in the building, the marketing center had been “preempted” in the morning, and many buyers were standing in line nervously with information in hand, waiting for the sales staff to go through the formalities. Outside the door, parked cars wound their way to Shuyuan South Road, a hundred meters long. Consultancy depends on rob, buy the first line, buy not to get all by luck… He to reporters repeatedly lamented the madness of sales.
It was wild discounts on prices that sparked the buying boom. The unit price of 6,888 yuan/square meter of commercial apartment, equivalent to a 50 percent discount on the basis of the record price. The project is reported to have sold 430 apartments in three days.
On March 22, a real estate consultant at the Country Garden Impression Apartments sales office near the Yuhua district government in Changsha, on the side of the Xiangzhang Road station of the Changsha-Zhuzhou-Xiangtan intercity railway, said that although the apartments do not have a degree, the price of the apartments has been directly reduced from about 10,000 yuan per square meter to 8,000 yuan per square meter, and 400 units have been sold in four days. Busiest day, sell until 2 a.m. Currently, only a few apartments of more than 30 square meters are available for sale.
During the reporter and its talk, the WeChat that this buys an estate adviser flashes ceaselessly, hint has two to already clinch a deal again.
On the evening of March 23, two Changsha real estate insiders said that although Changsha’s new wave of apartment price cuts is “surging”, it may only be the beginning.
“Although there is no restriction on purchase and loan and the total price of commercial apartments is low, compared with residential buildings, commercial apartments have large share, low greening rate, high water, electricity and property costs, short land use life, and most of them do not have degrees. It hasn’t sold well in recent years.” Mr. Liu, who is in charge of a real estate company in Changsha, said that the imbalance between the supply and demand of commercial apartments is particularly prominent, leading to great pressure to reduce the supply of commercial apartments.
Data from Hunan Zhongyuan Research Institute shows that as of the end of February this year, the inventory of commercial apartments in the five districts of Changsha continued to break through the highest level in history, up to 4.18 million square meters, and the de-conversion period increased to nearly 30 months, while the transaction price data kept falling. The average price of apartments in Changsha was 13,111 yuan per square meter in 2019, compared with 11,750 yuan per square meter since 2020, according to data from CRE.
Mr. Liu said that Changsha in the past five years, apartment prices experienced a boom and bust with the purchase restrictions are also related.
In March 2017, Changsha Municipal Government issued the “Notice on Further Promoting the Stable and Healthy Development of the Real Estate Market”, restricting the purchase of the city’s urban areas and Changsha County (limited to Changsha Economic Development Zone and Xingsha Area). In changsha policy again after six months, overweight, purchased in changsha city commodity housing (including second-hand housing) trading time changed from originally made real estate ownership certificate with 2 years to 3 years later, will not family of this city census register more than 12 months required for purchasing tax or social security time increases to 24 months, restricted area expanded to changsha municipal administrative area (not including liuyang, ningxiang city) range. As a result, housing prices, once rising, have been curbed.
Residential purchases are limited, and apartments are popular because of spillover investment demand.
Starting from 2017, Changsha apartment market ushered in a wave of sales boom with the advantage of “unlimited purchase”. Data showed that the annual turnover of apartments reached 970,000 square meters in 2017, with demand exceeding supply for the first time and the price exceeding 10,000 yuan per square meter. Stimulated by good market volume and price, the supply of apartments soared to 1.6 million square meters in 2018. The apartment market showed a blowout supply, and the transaction volume also reached the highest in recent years, more than 1.2 million square meters.
But now, because of oversupply, has come to the moment of change, price reduction has become a trend.
Mr. Zhao, who works in a central enterprise real estate company, said that compared with other first-tier cities, Changsha’s commercial-residential ratio is 3:7 or even higher, even compared with other provincial capitals in central China, which is much higher. In addition, there have been previous cases in Changsha where the price of apartments in the same project or in the same area was higher than the price of residences, which obviously did not conform to the law of the market.
He believes that in the de-chemical pressure of Changsha, facing the Red Sea of market competition, some developers to take price for volume projects is inevitable.
China Youth Daily reporter Hong Kefei Source: China Youth Daily