news

Sand table of China Construction Hesong Jiuli sales office Photo taken by reporter Bao Jingjing

The land was acquired at a premium capped at a guide price of 83,000 yuan per square meter. In Beijing's first land auction in 2024, the "twin stars" L42 and L44 plots in Dawayao within the southwest Fifth Ring Road of Fengtai District went to China Construction Xinhe and Beijing Energy. The two plots were only separated by a road. In the end, both were successfully sold with the upper limit price of the land + lottery (submission of a high-standard residential construction plan). Beijing Energy Real Estate won the L44 plot and China Construction Xinhe won the L42 plot. The premium rate of both was 15%.

However, the highlight of the land auction did not continue. L42 (namely China Construction and Song Jiuli), which is relatively difficult to build among the two plots of land, has only had three online signings since it was launched in June.

Image source: Beijing Municipal Housing and Urban-Rural Development Commission official website

On August 12, Zhang Dawei, chief analyst of Centaline Property, told the reporter of National Business Daily: "There are many reasons why it is not selling well, but the core reasons are two: first, the market in Beijing is very competitive, Hesong Jiuli has no price advantage, and its products have no special features; second, the competition in this area is fierce."

On June 21, a reporter from China Business News visited the site and found that the L42 plot had obvious flaws. Its triangular shape posed a great challenge to the layout of the buildings. The project plans to build a total of 9 buildings, mainly 17-18-story small high-rise buildings, and 8-story houses. The main apartment types are 113 square meters three-bedroom and 135 square meters four-bedroom. The largest is a 163 square meter four-bedroom.

The first buildings to be opened, No. 8 and No. 9, have unit types of 112 square meters for three-bedrooms and 134 square meters for four-bedrooms. The buildings are located at the corner of the plot, closer to the Beijing-Hong Kong-Macao Expressway.

"Our overall layout is enclosed. Although you see that it is on our red line, there is a municipal garden in front that is 50 meters wide and 300 meters long." Property consultant Xiao Ding (pseudonym) told the reporter from the "Daily Economic News".

On the other hand, the plot is a little far from the subway station and does not have an advantage over its competitors.

In order to seize the sales, Hesong Jiuli launched a big move: price reduction.

Xiao Ding calculated the discount for a 134-square-meter four-bedroom apartment on the 9th floor for the reporter from the China Business Network: the unit price is 81,556 yuan/square meter, and the total price is just over 11 million yuan; if you subscribe on the same day, you can enjoy another 99% discount, plus the 2% discount for the first sale, 99% discount for the down payment, 99% discount for the company's anniversary month, and 99% discount for the channel exclusive. The final total price is 10.36 million yuan, which is equivalent to a 96% discount.

However, over the past two months, the total number of online signings for the project is 3.

The official website of Beijing Municipal Housing and Urban-Rural Development Commission shows that 802, Unit 1, Building 8 has been signed, and 601 and 1101 have been registered online.

Image source: Beijing Municipal Housing and Urban-Rural Development Commission official website

According to the price announcement sheet seen by the reporter of Meike.com at the sales office, the proposed selling price of the building area of ​​802, Unit 1, Building 8 should be 80,222 yuan/square meter. However, the official website of Beijing Municipal Housing and Urban-Rural Development Commission showed that the average online transaction price was 68,933.21 yuan/square meter, while the original guidance price of the project was 83,000 yuan/square meter.

Project price list for each room

"The prices of Building 8 and Building 9 we launched are relatively low, but the prices of Building 4 will be higher later on," Xiao Ding pointed to the sand table and explained to the reporter, "We will recover the profits through the prices later on, and the average price of the entire project will be around 83,000 yuan per square meter after it is sold out, because every project starts low and ends high. It is impossible for the prices to be high at the beginning and then get cheaper as they go on."

According to Xiao Ding, the locations of Building 8 and Building 9 are not the best in the community, and the performance of only 1 unit signed online and 2 units booked in two months also reflects, to a certain extent, the market's value judgment on this sector.

It is worth noting that there are only two new projects around the "twin star" plots in Dawayaoban, namely Tianyue Shanhe and Guoyu Wanhecheng, both of which acquired land in July 2020 and have been delivered one after another. Among them, Tianyue Shanhe (Yunyue Jiayuan) was launched three and a half years ago with an average price of 81,000 yuan/square meter. It has been transferred to ready-to-move-in sales, but there are still many houses that have not been sold. The situation of Guoyu Wanhecheng (Zeyu Jiayuan) is slightly better, with about 35 ready-to-move-in houses available for sale.

As for the Xiaowayao plot, which is 3.6 kilometers away from China Construction Hesong Jiuli, the sales of Huaxi Mansion (Jinlong Yuejiayuan) are acceptable, with about 10 units remaining, but the average online signing price is 75,000 yuan per square meter.

So, what about the prices of second-hand houses in Dawayao area?

The Lianjia platform shows that there are not many houses for sale around the project. Guoyu Wanhecheng and Tianyue Shanhe each have 2 units for sale, with an average listing price of 85,000 yuan per square meter; the adjacent 10-year-old affordable housing Fengze Home has a total of 29 units listed, with listing prices ranging from 37,000 yuan to 54,000 yuan per square meter; Dawayao Oasis Home has 22 units for sale, with listing prices ranging from 37,000 yuan to 49,000 yuan per square meter.

Vanke COFCO Holiday Scenery, which is one subway stop away, is about 15 years old and has an average second-hand housing price of 68,000 yuan/square meter; Jianbang Fengjing is 56,000 yuan/square meter.

In comparison, the price of Hesong Jiuli is much higher than that of second-hand houses.

The other "twin stars" - Jingneng Xixianfu, was launched in July with the same average price of 83,000 yuan per square meter. Currently, there is still no online signing record on the official website of Beijing Municipal Housing and Urban-Rural Development Commission.

According to the recommendation of the real estate consultant, the Dawayao area is positioned as the "back garden" of the Lize Business District, and it takes about 15 to 18 minutes to reach Lize by subway. However, the Lize Business District itself is still under construction, and it will take some time for it to become a mature and radiating urban sub-center. As for the Dawayao area, which is positioned to "accept the spillover residential demand from the Lize Business District", can its urban planning and interface support the "ambition" of a unit price of 80,000 yuan/square meter in the current downward trend of the market?

"The competition in this area is fierce. Either the price drops a lot or the product is very good, otherwise it won't sell well. This is not just for this project," said Zhang Dawei.

Written by Bao Jingjing

Editor｜Chen Mengyu

Cover and text source | Photo by reporter Bao Jingjing of China Business Network