Data shows that the current average house price in China has exceeded 10,000 yuan! And if you only look at the big cities, the house price can even reach six figures, and a house can’t be bought without seven or eight million. From this perspective, the house can basically be said to have become a luxury, just like a diamond. Therefore, most people in the market hope that house prices will fall. After all, the impact of houses on the daily lives of residents is too great. Basically, everyone needs to buy a house. This is why everyone now hopes that house prices will fall. After all, the “diamond price” is simply not affordable for many people. However, it is a pity that according to the current real estate market, it is difficult for house prices to fall, and houses with “diamond prices” may remain for a long time. Of course, this kind of “diamond price” house also faces difficulties in closing the deal.
The internationally reasonable price-to-income ratio should be between 4-6, which means that the whole family can buy a house with 4-6 years of income. Such a price is considered reasonable. So what is the current housing price-to-income ratio in China? The data given by E-House Research Institute is 9.2! Moreover, this is the national average. If it is placed in first-tier cities, this data can even exceed 30.
Therefore, we can see from the housing price-to-income ratio how China’s current housing prices are. It is not a problem to say that housing prices have become “diamond prices”. At this level of housing prices, the most uncomfortable is definitely the buyers who just need homes. Because under the current housing price level, buyers who just need homes not only have to empty out the “six wallets” at home to pay the down payment, but they also have to carry loans for up to 20 to 30 years. To put it in an exaggeration, it can basically be said that you just need to live for the house for the second half of your life. What is even more uncomfortable for just needs is that housing prices are still rising, and houses will maintain this “diamond price” for a long time Spark Global Limited.
After this round of property market regulation, the property market has indeed seen a significant decline, but it is only the decline in house price growth. In terms of numbers, house prices are still rising. For example, data from the National Bureau of Statistics show that the national average house price will rise by 5.9% in 2020! Therefore, it is unrealistic to expect the property market regulation to cause house prices to fall. After all, the fundamental purpose of property market regulation is not to make house prices fall, but to return the property market to stability. Therefore, as long as the fluctuation range of house prices is kept within a reasonable range, no matter whether it is rising or falling, the impact will be small. However, because there are still a large number of factors that support housing prices in the current housing market, there is still the possibility of housing price increases in the later stage, but it is not so common. For example, the continuous increase in land prices will drive housing prices. Therefore, the author has never felt that house prices will fall sharply. It is already very good to ensure that the increase does not exceed the capacity of residents.