Ni Hong, vice minister of the Ministry of Housing and Urban-Rural Development, talked with officials in five cities, including Guangzhou, Hefei, Ningbo, Dongguan and Nantong, and once again put forward the principle of “no speculation on housing and housing prices”, emphasizing the responsibility of cities as the main body, and reiterating the “three stability” (stable land prices, stable housing prices and stable expectations) regulation goals.
Of the five cities interviewed, Hefei has been the focus of attention.
Hefei has been in the spotlight in the past few months for its rapidly rising property prices and high hype. Among them, the school district housing price level and rise is the most astonishing. In government districts, housing prices in some prime school districts have risen by nearly 50 per cent in just a few months.
April 5, Hefei released control of the property market “eight”, in addition to the supply and demand at both ends of the adjustment, but also involved in the adjustment of degree policy, Hefei even on the hot school district second-hand housing implementation of directional purchase restrictions. Throughout the recent introduction of regulation and control policies of the city, the school district housing has not been out of the right hand.
As a central provincial capital city, Hefei property market why sudden change? The 21st Century Business Herald reporter learned that the housing market in Hefei has been in short supply for a long time under the “tip of the iceberg” of school district housing. Not only is it difficult to keep up with rising demand, it is also a breeding ground for panic.
The need to be hurt
If stand in the Spring Festival node, Hefei property market warming appears to have early clues. A person in charge of a real estate enterprise in Hefei told 21st Century Business Herald that the real estate market in Hefei has been heating up significantly since the second half of last year. Before the Spring Festival, the number of visitors and storage of customers for many projects are still very large. In addition to the policy of “in place for the Spring Festival”, the real estate enterprises generally expect the real estate market to be better than in previous years, so they increase the supply quantity.
This preparation has also worked. Data show that during this year’s Spring Festival from February 11 to February 18, a total of 637 houses were sold in Hefei. This is a 124% increase compared to the 2019 Spring Festival before the outbreak.
Hefei is regarded as a “mono-core” city in Anhui Province, which has a strong siphon effect on surrounding areas. After the Spring Festival, some developers began to raise prices and adjust the conditions for buying homes. For example, the Zhengrong Mansion project in Beicheng, part of Zhengrong Group, raised the minimum down payment for high-rise residences to 30 per cent and for foreign homes to 35 per cent. But despite this, demand still exceeds supply.
On March 5, the first land auction of the Year of the Ox was held in Hefei, attracting nearly 100 real estate companies to compete for eight plots of land and bid 7.22 billion yuan for all of them. Auction was fierce, with a record 50,000 square metres of land held by the buyer at an auction in the development district.
The following two days were weekends, and some projects that felt the heat of the market began to make some moves. On March 6 and 7, at least six real estate developers adjusted their sales strategies, raising prices, raising down payments and canceling preferential measures.
At this time is not only the beginning of the traditional “Indian summer”, but also coincides with the degree house purchase cycle, the heat of new houses soon spread to the second-hand housing market. In lakeside, government affairs, high-tech and other hot areas, the price of second-hand housing has risen significantly, and the housing in school districts is leading the price rise sequence. The price of some high quality school district housing in the government district rose as high as 60,000 yuan per square meter, an increase of 50 percent over the same period last year.
With higher prices, the rise in school district housing in turn stimulates the market and exacerbates the chase sentiment.
At this time of the Hefei property market, speculation atmosphere and panic mood has been relatively strong. According to official data, 5,327 residential units were registered online in downtown Hefei in March, up 30 percent month-on-month and 24.1 percent year-on-year. At the end of the transaction, a large number of funds into the property market, Wu disc reluctant to sell, “speculation” began to appear, the price of new housing projects has been a common phenomenon, part of the second-hand housing community also has owners jointly price rise. Some netizens called for “returning Hefei to Gangneed”.
According to the National Bureau of Statistics, new residential prices in Hefei rose 0.6 percent month-on-month in February, while prices for existing homes rose 0.8 percent, the fastest increase among 70 large and medium-sized cities.
article links：Supply and demand dislocation under the chase upsurge
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