Recently, it was reported that a property price cut by 6,000 yuan per square meter in Anhui Province. The real estate director went to investigate in person, and soon, housing prices rose again. After a property in Dangshan reduced its price, the local government organized a meet

Recently, it was reported that a property price was reduced by 6,000 yuan per square meter by a certain property. The real estate director personally went to investigate. Soon, the housing prices rose again.

is unique. After a property in Dangshan reduced its price, the local government organized a meeting on "exploited price reduction incident" to suspend the pre-sale licenses for related properties, and also imposed penalties on four cooperative banks.

If someone who can’t understand it is like “Xu Sanguan” who can’t buy a house with six wallets – and won’t let developers lower the price? What the hell?

price reduction has been rising one after another

price reduction has begun.

followed closely, and Vanke staged a "living" drama. Not only was the price of a project in Xiamen "halved", but it also had to attach good conditions for check-out and refunding the full amount. Such generousness once made the "house messengers" blush. As a weather vane, Beijing housing prices have long been a consensus that "decline" has been. Data shows that from January to August this year, the sales area of ​​commercial housing in Beijing was 3.542 million square meters, a year-on-year decrease of 32.8%. Among them, the residential sales area was 2.663 million square meters, a year-on-year decrease of 22.7%.

Third- and fourth-tier cities cannot escape. For example, in Yueyang, which has won the first place in the country's housing price growth this year, price reduction has become a trend, and the price of a property developed by a certain central enterprise has dropped by nearly 20%.

House prices have dropped, and the urgent need is laughing.

"The house cannot be sold, we walked into the sales office and finally greeted him with a smile," said Mr. Zhang, who had been looking at the house for more than a year. Starting from August, property consultants have called to invite house viewing and there is also a free shuttle bus to pick up the house. This treatment is flattering to those who need it.

More than half a year ago, the tea and water fee for a popular property in Xiangjiang River in Changsha was still 200,000 yuan. Some friends asked for the financial situation to find out if there was any way. Now, because the large apartment is difficult to sell, the property has to delay opening.

House prices have dropped, and real estate self-media is also happy. A friend revealed that in the first half of the year, they relied on buying houses, and developers were too lazy to do publicity and were lukewarm with their media friends. When the situation changed, developers took the initiative to invite them, and they wrote soft articles.

Seeding chain

Some people are happy and some are sad.

If it weren't for the situation, who would be willing to cut the price and cut the loss and let the blood be?

In June this year, Hu Zhigang, president of the China Real Estate Association, warned, "The current situation will only make those who can live well and those who are dying"; Vanke Yu Liang also shouted loudly, "If the target of 630 billion in repayment is not achieved, all our businesses can be stopped."

The most important thing to survive - whether it is selling a house or selling buns, you must quickly collect the money, and the price reduction promotion is always the most direct and effective.

But although the payment is fast, it hurts to cut the flesh. An employee of a real estate company who followed the investment project said, "I have been following the investment for three years, but now I lose money when I open the market, and I can't get it out if I get it in it."

I also have annoying things if I bought a house. The price was reduced by 6,000 yuan per square meter, and the price of his own house fell by one million overnight. Even the rich homeowner couldn't sit still. There were many financially free people and middle-class people in the team that brought banners in front of sales offices and government office buildings. There are many impulsive people who directly smashed the sales office.

There are constant rights protection incidents and prominent petition problems, and the government's pressure to maintain stability will inevitably increase, and the housing and construction departments in various places are also busy coping. The director of a district real estate bureau said that 95% of the owner's rights protection incidents are based on reasonable demands; it is common for developers to violate regulations, such as false propaganda, excessive publicity, malicious hype, illegal intermediaries, bundled sales, false promises, fine decoration issues, etc. But the government is always taking the blame.

There are so many problems, but the developer is thinking of lowering prices and selling them out? You get angry just by thinking about it, and the consequences of being angry are very "serious". So the chain structure - interviews, research, and prices rose back.

land finance

That "the scapegoat" can let go, is it okay? Some officials have determined that the government has been passively bound to the developer in disguise by setting land prices, housing prices, housing purchase qualifications, fine decoration materials prices, model numbers, etc.

is not completely passive.

I recalled that the developers and local governments were "in love" and that most of the leaders of the party and government were responsible for project progress. The red light was closed and the green light was opened. However, it is easy to share wealth and prosperity, but it is difficult to share hardships.

In order to survive, developers have to cut prices and pay more, and spend less money and acquire less land; but Land finance is the lifeblood of local governments, and it is really a waste of time to acquire less land.

On November 5, two plots of land in Chaoyang District and Changping District of Beijing were sold at the lowest price; Hangzhou, which ranked first in the country in the land transfer fee, had 5 of the 6 plots sold in October, with zero premiums.

There are news that many places in Shenyang, Wuhan, Fuzhou and Changsha have failed to sell. In the first three quarters of this year, a total of 446 residential land were sold in 300 cities across the country, with a total planned construction area of ​​56.45 million square meters, which is about 1.8 times the total planned construction area of ​​the land sold in 2017.

On November 2, E-House Research Institute said: From January to October, the land transfer fee for the 40 cities it monitored decreased by 0.5% year-on-year, turning negative for the first time since early 2016, and the prefecture-level market cooling was significantly reduced.

Some real estate companies told Economic Ke that projects that acquired land at high prices in the past two years now have now limited land prices and housing prices, and various restrictions; in addition, the price increases of building materials such as cement, river sand, and steel bars, and labor costs increase. When the situation is good, they will not allow prices to rise. The situation is bad, and the price is not allowed to be reduced. "The land has to be cautious."

In the first half of this year, the land transfer fee acquired by local governments totaled 2694.1 billion yuan, plus the taxes and fees related to land transfer of 979.9 billion yuan, a total of 364.7 billion yuan; the total income of local governments is 446.42 billion yuan. The actual data of "land finance" is in front of you, and the minimum price is sold and sold for sale. How terrible is such a word to the eyes of local officials? Almost no place can withstand a sharp decline in land income.

In May, a county-level city in Hunan stopped paying civil servants' salaries due to financial difficulties. It is said that it was later sold for two pieces of land before reissueing; a relevant person from a company bidding for government projects in Guizhou said that the project with a total investment of hundreds of millions of yuan was cut off from the beginning of the year and he had not received his salary for 9 months.

Where does that money come from? If you cannot borrow money, local debts are overwhelmed. The central government requires strict control of new local debts and clearing existing debts; if you cannot increase taxes, enterprises will complain and large-scale tax cuts are imminent. If the land fails to sell on a large scale, or is sold at a large discount, how terrible is the situation to the local government?

overcomes the difficulties together. According to economic knowledge, the minutes of an internal meeting of a district government said, "What developers sell is not a house, but a responsibility." Naturally, various means must be used for those "irresponsible" developers.

However, this can only be a temporary urgent matter.

As for the future, how to gradually get rid of land finance, stabilize local government financial resources, ensure local operations, and maintain the stability of the real estate market, a major change is still needed.

(Source: Economic Ke, jointly produced by Xiake Island and "China Economic Weekly")