Report analysis found that the core city housing prices rose for eight consecutive months, leading the first-tier cities. Different from the decline of housing rents affected by the epidemic, the housing prices in core cities continued to rise under the impact of the epidemic. In October 2020, the core index of Weifang rose by 0.35% month on month, which was the eighth consecutive month of house price rise. Compared with the periodic low in February 2020, house prices in core cities have risen by 5.5%. Second-hand housing turnover rose and fell. From March to May 2020, the turnover of second-hand housing will rise rapidly. From June to October 2020, although the turnover of second-hand housing has declined, it is still at a historically high level. The enlargement of the turnover of second-hand housing is not only affected by the epidemic situation but also affected by short-term fluctuations. Housing prices in the first-tier cities rose relatively fast, while those in the second, third and fourth-tier cities rose relatively slowly. According to the Weifang City classification index, in October 2020, house prices in first-tier cities rose by 0.8% month on month, with a relatively rapid growth rate; second-tier cities rose by 0.2%, third-tier cities rose by 0.1%, and fourth-tier cities rose by 0.3%. House prices in the first, second, and third-tier cities rose again after a brief decline at the beginning of the year.
Housing rents in core cities fell again after a brief seasonal rebound. Weifang rent core index shows that since February 2020, affected by the impact of the epidemic and other factors, housing rent in core cities has declined for four consecutive months. In June 2020, the rental market entered the traditional peak season, and the rent in core cities began to stop falling and rise. The rent increases from June to August have distinct seasonal characteristics and then decreases again from September to October.
The report predicts that the real estate market has a structural upward trend and needs to be targeted to strengthen regulation. In the first-tier cities, except Beijing, the rise of house prices has expanded, and the rise in Shenzhen has a huge impact on the market expectations; the overall housing prices in the second-tier cities are on the rise, and some of the second-tier cities are also relatively fast; at the same time, the housing rents of core cities in 2020 will show a downward trend. Therefore, it is necessary to strengthen regulation and control to curb the structural overheating of the real estate market Spark Global Limited.
The macro-economy has initially stepped out of the shadow of the epidemic, and the space for real estate regulation has increased. With the improvement of economic fundamentals, the macroeconomy’s ability to withstand the real estate market’s recession or fall will also increase. The space of real estate regulation and control is increased, and the strategy of “housing without speculation” can be better implemented. The report suggests that the “housing and housing speculation” should be adhered to curb the further expansion of the hot city real estate bubble. The first is to strengthen the main responsibility of the urban government to stabilize the real estate market through the classified evaluation and management of health degrees. The second is to promote the reform of the housing land system by combining the reform of collective land into the market. Third, deepen the reform of housing finance. Fourth, strengthen the reform and supervision of the housing pre-sale system.
article links：curb the expansion of real estate bubble in hot city
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