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In the same market, real estate projects in Shenzhen have different fates. On one hand, some projects are enjoying the hot sales and receiving good news, while on the other hand, some projects are facing the cold current of slow sales and weak sales.

Recently, Shenzhen Urban Construction Group's project in Longgang has attracted market attention due to its slow sales. Some netizens found that the project has been on sale for 7 months, but the number of online signings is only two; and another project of Shenzhen Urban Construction Group in Luohu has been on sale for more than a month, and the number of online signings is only in the double digits.

“Based on the current sales speed, we don’t know when all the houses will be sold out.” Some netizens bluntly said that it was a rare return for Shenzhen Urban Construction Group with two residential projects, but it was “poured cold water” from head to toe by the market.

So what is the actual sales situation of the project? Why did Shenzhen Urban Construction Group encounter the problem of "slow sales"? Nanduwan Finance reporter sent an interview letter to Shenzhen Urban Construction Group, but no response was received as of press time.

Sales “cold”

In January this year, the Chengjian Yunchenhui project located in Longgang Bantian Street obtained a license and started selling, with a total of 154 units for pre-sale, including 139 residential units and 15 commercial units. The reporter noticed that the poster for obtaining the license advertised a total price of "starting from 20,000 yuan", and the smallest area of ​​the project was 65 square meters, which means that the lowest unit price of the project is only more than 40,000 yuan, which is 15% off the lowest registered unit price (52,000 yuan/square meter).

"The unit price of Yunchenhui after the discount is equivalent to the unit price 10 years ago." At that time, the price of the project attracted the attention of a wave of home buyers. A market insider told reporters that the average selling price of new houses in Bantian is generally around 60,000 yuan, and the opening unit price of more than 40,000 yuan is equivalent to the price 10 years ago. For example, the new project Galaxy Silver Lake Valley, which entered the market in 2014, had a unit price of only about 53,000 yuan per square meter at that time.

But such a big discount does not seem to attract too many buyers. As of August 15, the Shenzhen Real Estate Information Platform showed thatChengjian Yunchenhui Project (registered name: Yunchenli) has two registered properties, and the remaining properties are all displayed as "Off-planFor Sale" status.

Image source: Shenzhen Real Estate Information Platform.

Although there is a time lag between the time when the buyer signs the contract and the time when the contract information is filed in the Housing Authority system, the lag time for online signing is generally around 1-2 months. So, since the launch of the Chengjian Yunchenhui project, only two houses have been filed in 7 months. Does this mean that only two houses have been sold since the launch of the project?

"The project is almost sold out." On August 15, the reporter asked the sales staff of the Chengjian Yunchenhui project as a home buyer whether only two units were sold. The sales staff said that they were almost sold out but many units had not been registered. As for the unit type the reporter asked about, the sales staff also said that there were still units available. In terms of price, the current average price after discount is about 51,000 yuan/㎡, which is 86% off the average registered price (59,000 yuan/㎡).

The Chengjian Yunchenhui project is the first project of Shenzhen Urban Construction Group in Bantian, but it is not the only project on sale in Shenzhen.

Lingyun Huafu project in Luohu, also under Shenzhen Urban Construction Group, was approved for pre-sale on June 27 this year, with a total of 378 residential units launched. The average price of the project filing was about 73,000 yuan/㎡, and the average opening price was about 62,100 yuan/㎡, which was also a big discount, 15% off the filing price.

As of August 15, the Shenzhen Real Estate Information Platform showed thatLingyun Huafu project has 27 units on record, 6 units have signed subscription agreements, and the branch has locked 1 unit, totaling 34 units, the sales rate is only in single digits, which is not ideal.

Image source: Shenzhen Real Estate Information Platform.

However, online signing has a lag, and the property has been on the market for less than two months, so the actual sales situation is yet to be officially announced. Nanduwan Finance reporter sent an interview letter to Shenzhen Urban Construction Group on related issues, but no response was received as of press time.

Long-awaited entry into the market

It is understood that Shenzhen Urban Construction Development (Group) Co., Ltd. (hereinafter referred to as "Shenzhen Urban Construction Group")It is a state-owned real estate development group company under Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as "Shenzhen Investment Holdings") with national comprehensive first-class real estate development qualifications., with registered capital of 1.668 billion yuan.

According to the official website, Shenzhen Urban Construction Group was formerly the Shenzhen Basic Working Group established in 1982, which has a history of 41 years. It is also a participant in the construction of many urban public supporting facilities in Shenzhen, such as the Shenzhen Grand Theater and the Shenzhen Science Museum. The group has developed more than 100 projects with a development area of ​​more than 20 million square meters. As of the end of 2020, the group's total assets reached 21.097 billion yuan and its net assets reached 6.81 billion yuan.

However, it has been quite a while since Shenzhen Urban Construction Group launched any new projects in the market, and the launch of Lingyun Huafu and Yunchenhui projects is also considered to be its long-awaited return to the residential market.

Among them, Chengjian Yunchenhui project is the first project of Shenzhen Chengjian Group in Bantian. The overall planning of the project has a total construction area of ​​about 71,000 square meters and consists of two buildings. One of the buildings is a residential + commercial building with 31 floors and a residential construction area of ​​about 16,000 square meters (including about 3,140 square meters of affordable housing); the other is a business office + dormitory apartment + commercial complex with a building height of about 143 meters.

Lingyun Huafu is located at the intersection of Baoan North Road and Liyuan Road in Sungang Street, Luohu District, Shenzhen, and is part of the Shenzhen Urban Construction Group's Sungang District Renewal Project. The project was formerly the Urban Construction Meiyuan Urban Renewal Unit, and is planned to be the Urban Construction Yuntou Innovation Financial Headquarters Base, with a total investment of about 15 billion yuan and a planned total construction area of ​​about 630,000 square meters. It is an urban complex integrating commercial, R&D office, residential, and apartment functions.

It is worth mentioning that the high-end business office building Yuntou Building planned in the complex has a structural height of 407 meters and is known as the "Crown of Luohu". After completion, its height will be second only to Ping An Financial Center and Kingkey 100 Building, and it may become the third tallest building in Shenzhen.

Image source: official WeChat account of “Chengjian Yuntou Innovation Finance Headquarters Base”.

There may be two reasons for the unsatisfactory sales of the two projects. On the one hand, the real estate market is still sluggish, which generally affects the sales of new projects. According to the changes in the sales prices of commercial housing in 70 large and medium-sized cities in July 2024 announced by the National Bureau of Statistics, the sales prices of first-hand new commercial housing in Shenzhen fell by 0.9% month-on-month and 9.9% year-on-year in July. It has fallen for 15 consecutive months month-on-month and 20 consecutive months year-on-year.

Under the slightly cold market conditions, an industry expert once told reporters that it is a common phenomenon for 20% to 30% of new homes to be sold upon launch, and selling 40% to 50% is already considered a good sales project.

Another reason may be that the project itself has shortcomings. Whether it is Yunchenhui or Lingyun Huafu, both projects have only one commercial residential building, and the overall living atmosphere is not as good as that of a large community. The locations of the two projects are not the core of the area, and the apartment types and utility rates are not outstanding. Although the price discounts are large, the competitiveness is still slightly insufficient.

In today's real estate market, developers with state-owned assets have no risk of funding problems or unfinished projects, and are obviously more popular with homebuyers. However, Shenzhen Urban Construction Group, which faces the problem of selling out its products, still needs to be verified by the market.

Written by: Sun Yang, a reporter from Nandu Wancaishe