The plight of the fifth-tier cities: behind the renewed “rescue” policy in Dazhou, Sichuan Province, housing prices have fallen for two consecutive years
At the beginning of April, the Dazhou government office issued a notice on the extension of the execution period, which said that the 100 yuan/square meter housing subsidy in the central urban area of Dazhou will continue to be implemented until the end of June this year. Since the beginning of this year, the real estate market in some cities has been overheating again, and the Ministry of Housing and Urban-Rural Development (MOHURD) has once again started the interview mode after three years. In this context, as the first national introduction of housing subsidy policy in 2020 city, Dazhou issued this year to continue the implementation of housing subsidy policy attracted considerable attention.
A senior researcher of the real estate market in Dazhou introduced that the hot round of the real estate market in Dazhou started in 2016 and reached its peak in 2018, with the average price rising from more than 5000 yuan to more than 8000 yuan. At the time, the housing market was so hot that there were signs of a correction beginning in the second half of 2018. In 2018, housing prices in Dazhou increased by 29 percent compared with 2017. The rapid rise overdrew the market demand, and the real estate price greatly exceeded the income level of local residents in Dazhou. The market situation began to decline sharply from 2019. In 2020, the market was affected by the COVID-19 epidemic.
In fact, in addition to Dazhou, Wenzhou, Zhangjiajie and other cities across the country recently introduced similar policies. Yan Yuejin, research director of the Think Tank Center of E-house Research Institute, believes that the relevant policies of such cities objectively contribute to the active market of real estate transactions. It can also be considered that there is a relatively urgent demand for population introduction and destocking.
Reprint indicated source：Spark Global Limited information