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Following last year’s strong performance, Chengdu’s real estate market continues to lead this year.

According to data from the Chengdu Housing and Urban-Rural Development Bureau, 50,548 new homes were sold in Greater Chengdu in the first half of 2024, and approximately 104,400 second-hand homes were sold, totaling approximately 155,000 homes.

In terms of transaction scale, CRIC Sichuan data showed that in the first half of the year, the residential transaction area in Greater Chengdu was 6.1 million square meters, ranking first among key cities, exceeding the second place Xi'an by 60%, and far exceeding key cities such as Hangzhou, Shanghai, Guangzhou, Beijing, Suzhou and Shenzhen.

In the first half of the year, the residential transaction area in Greater Chengdu ranked first among key cities. Photo/CRIC Sichuan

In terms of price, according to the data of 70 cities released by the National Bureau of Statistics, from January to May this year, when housing prices in most cities were falling, the sales prices of newly built commercial housing in Chengdu maintained a monthly year-on-year increase. In particular, in May, only three cities among the 70 cities achieved a year-on-year increase, one of which was Chengdu, showing strong resilience.

Why is Chengdu's real estate market able to develop an independent trend when the overall market is declining?

Economic growth and population influx bring consumption vitality

Yan Yuejin, deputy director of the Shanghai E-House Real Estate Research Institute, believes that the strong performance of Chengdu's real estate market is largely related to the rapid influx of population.

While many cities across the country have seen negative growth in permanent population, Chengdu's permanent population has continued to grow for many years. According to the Chengdu Municipal Bureau of Statistics and the Chengdu Survey Team of the National Bureau of Statistics, Chengdu's permanent population will be 21.403 million at the end of 2023, an increase of 135,000 people from the end of the previous year, a growth of 0.6%.

Chengdu's permanent population has been growing for many consecutive years (data source: Chengdu Statistics Bureau). Map/Beijing News reporter Duan Wenping

In the opinion of industry insiders, the underlying logic behind the strong real estate market in Chengdu is that as the leading city in the western region, one of the cores of the Twin Cities Economic Circle, and one of the comprehensive transportation hubs in the western region, its economy has developed well, its industries have been upgraded, and commercial consumption has been active in recent years. This has led to a continuous influx of population and talent, laying the foundation for consumption including food, clothing, housing and transportation, and enhancing vitality.

Data from the Chengdu Municipal Government website show that in 2023, the GDP of Chengdu was 2,207.47 billion yuan, ranking among the top seven in the country, with a year-on-year increase of 6%. Among them, the primary, secondary and tertiary industries grew by 3%, 3% and 7.5% respectively.

In terms of industrial development, data from the Chengdu Development and Reform Commission show that Chengdu currently has 9 national-level industrial clusters, including 3 national-level advanced manufacturing industry clusters, 2 national strategic emerging industry clusters, and 4 small and medium-sized enterprise characteristic industry clusters.

According to the "14th Five-Year Plan for High-Quality Development of Manufacturing Industry" issued by Chengdu, its goal is to build two trillion-level industrial clusters in electronic information and equipment manufacturing and more than 100 billion-level industrial clusters by 2025. Among them, the electronic information industry will exceed 1.5 trillion yuan in operating income by 2025. As early as 2020, the scale of Chengdu's electronic information industry has exceeded the 1 trillion yuan mark, becoming the first trillion-level industry in Chengdu and Sichuan Province.

Industrial development is the core driving force of economic growth. In recent years, through technological innovation, industrial upgrading and the formation of industrial chains, Chengdu's industrial development has significantly improved economic benefits and promoted sustained and stable growth. At the same time, it creates a large number of employment opportunities. Industrially developed areas tend to be more attractive and can attract more population inflows, including high-quality talents and labor, which in turn will bring real consumer demand, especially for housing. This is also the core reason why Chengdu's real estate market transactions can lead.

With these basic factors, coupled with a series of relaxed policies in Chengdu on housing demand, the release of demand for self-occupation and home improvement has been stimulated.

Since last year, Chengdu has introduced a series of relaxed policies, such as "recognizing housing but not loans", loosening purchase restrictions, canceling the land price limit, canceling the lottery for housing selection, adjusting the provident fund policy, etc. It has also completely canceled the housing purchase restrictions that lasted for 7 and a half years to better meet the people's diversified housing needs.

Return to the main city, high-end housing projects activate Chengdu real estate market

Looking at the Chengdu real estate market this year, in addition to the continued leading sales, the characteristics of returning to the main city are very obvious in both land transfer and property transactions.

Since the beginning of this year, Chengdu has conducted many land transfers, showing a two-tier differentiation trend, with land prices in the core area of ​​the main city rising and the suburbs cooling. In April, in the second land transfer of the year, a 16-acre plot in Guixi Street, Chengdu Hi-Tech Zone was sold at a floor price of 23,200 yuan/square meter, breaking the regional land auction price record. In another land transfer in the same month, a 52-acre plot in Liujiang Street, Jinjiang District was sold at a floor price of 24,500 yuan/square meter, breaking the highest floor price record in Chengdu.

On June 25, Chengdu conducted its first land sale after the cancellation of the property purchase restrictions. All four plots were from the main urban area. The plot in Sansheng Township, Jinjiang District, was sold at a premium of 11.54%, and the ultra-high floor price of 20,300 yuan/square meter also set a new regional record. Three days later, another land sale saw two of the three plots sold at a premium. Among them, a 28-mu residential plot in Sansheng Township, Jinjiang District, was sold at a premium of 4.4%, and a 34-mu residential plot in Waishuangnan, Wuhou District, was sold at a premium of 5%.

China Index Academy believes that in the first half of 2024, the central urban area will still be the main supply and demand area for residential land, and the popularity of residential land will continue to diverge, with premium plots still mainly concentrated in the "5+2" areas (Jinjiang District, Qingyang District, Jinniu District, Wuhou District, Chenghua District, High-tech Zone, and Tianfu New Area). In the first half of the year, the average floor price of residential land in the "5+2" areas was 17,590 yuan/square meter, up 18% year-on-year; the premium rate was 16.2%, up 4 percentage points year-on-year.

The core areas of main cities usually have abundant industrial, educational, medical, commercial, and transportation resources. The agglomeration effect of these resources increases the real estate value of the region, which also prompts real estate companies to acquire land and return to the main urban areas.

In addition, in terms of real estate transactions, Chengdu’s trend of returning to the main urban area is more prominent.

According to CRIC statistics, in the first half of this year, the first circle (i.e. the “5+2” area) accounted for nearly half of the residential transaction area in Chengdu. Among them, Wuhou District and Qingyang District were driven by the supply of high-quality properties, and the transaction scale increased month-on-month.

In the regional transaction structure, according to CRIC Sichuan statistics, among the 27 projects on the Chengdu residential project sales list in the first half of 2024, more than 70% are concentrated in the first circle.

The transaction ranking of real estate projects in Chengdu with an average unit price of more than 5 million yuan shows a clear trend of returning to the main city.

From the perspective of the subscription of the Housing Association, from March 1 to June 25, 2023, the 10 real estate projects with an average transaction price of more than 5 million yuan in Greater Chengdu are all from the "5+2" main urban areas. It is worth noting that two of the top three real estate projects are Xipai projects of China Railway Construction, namely Xipai Shaocheng in Qingyang District and Wuhou Xipai Zhenjing in Wuhou District.

In the first seven months of this year, China Railway Construction ranked second in the Chengdu real estate sales ranking. The picture shows the real scene of the aesthetic demonstration area of ​​the Wuhou Xipai Zhenjing project.

According to CRIC Sichuan, the high transaction volume in Chengdu is mainly due to the timely entry of high-end projects, which meets market demand and maintains the market activity. In July, the sales rate of many high-end projects on the first day of sale exceeded 80%.

The main city's resource endowment and strong product power behind the hot sales of Wuhou Xipai Zhenjing

Among the single-project transactions above 5 million yuan, China Railway Construction Corporation has two projects ranked in the top three, which shows its extraordinary performance in the Chengdu real estate market.

In recent years, China Railway Construction Real Estate has been among the best in sales performance in the Chengdu real estate market. CRIC Sichuan released the "Top 50 Chengdu Real Estate Sales Rankings from January to July 2024", in which China Railway Construction ranked second with 10.257 billion yuan; the equity amount was 6.017 billion yuan, also ranking second.

In the Chengdu real estate market, China Railway Construction’s product line “West Faction” is even more famous and is known to everyone.

It is understood that the "Xipai Series" is a high-end product line of China Railway Construction Corporation. It has been deeply developed in Chengdu for 14 years and has launched 15 projects, especially 9 projects in the main urban area Wuhou New City, from Xipai City to Xipai Chengyuan, and then to Wuhou Xipai Zhenjing and Xipai Shanjing. The "Xipai Series" has become a dazzling business card in Chengdu's high-end residential market.

Since the first sale in March 2024, which sold out in 2 hours, the Wuhou Xipai Zhenjing project has obtained certification many times, and each sale has been hot-selling. From the perspective of the Housing Union subscription, from March 1 to June 25, 2023, in the Wuhou District 5 million-level transaction ranking, Wuhou Xipai Zhenjing ranked first in terms of transaction volume, transaction area, and value.

Real scene of the aesthetic demonstration area of ​​Wuhou Xipai Zhenjing project.

The reason behind the continued hot sales of Wuhou Xipai Zhenjing is not only the overall positive fundamentals of Chengdu, the strength of the central enterprise jointly developed by China Railway Construction and China Merchants Shekou, and the brand IP established by the "Xipai" through deep cultivation in Chengdu, but also the high-quality resources in the main city such as location, transportation, and supporting facilities, which have become an important factor in the project's competitiveness in the Chengdu market.

Let's first talk about Wuhou New City, where Wuhou Xipai Zhenjing is located. It is located outside the third ring road in the southwest of Chengdu and is a modern new district that Wuhou District focuses on building. After industrial upgrading, the district mainly develops headquarters economy, electronic information services, business services, emerging real estate and related productive service industries. After years of development, the South District of Wuhou New City, where Xipai Zhenjing is located, has developed into a high-end residential area.

In terms of transportation, in addition to the Third Ring Road, there is also the Sichuan-Tibet Interchange Station of Metro Line 3 near Wuhou Xipai Zhenjing. Metro Lines 9, 10, and 17 have been opened in the area, which are seamlessly connected to the whole city. In terms of commerce, Wanda Plaza is about 600 meters away from the project, and Wuhou Joy City is also nearby. These commercial entities enrich the shopping options of residents. In terms of education, there are rich and high-quality educational resources near the project, covering multiple stages from kindergarten to high school, especially the Chengdu Affiliated Primary School of Beijing International Studies University, which is a famous educational school in the area.

In order to live up to the high-quality main city resources, China Railway Construction once again brought out the "West Faction" high-end product line and upgraded it. Whether it is garden landscaping, club construction, building facades, or artistic gates, they are committed to maximizing the product strength and providing residents with high-quality high-end communities.

It is also worth noting that the apartment design of Wuhou Xipai Zhenjing, whether in terms of scale, lighting or functionality, has "rolled" to new heights, and is a top-notch product in first- and second-tier cities.

Wuhou Xipai Zhenjing has four bedrooms with an area of ​​143 square meters and 188 square meters, and the extra-large living room attracts attention.

Real scene of the aesthetic demonstration area of ​​Wuhou Xipai Zhenjing project.

It is understood that Wuhou Xipai Zhenjing has planned a total of 24 pure panel houses with a height of 9-13F and 818 housing units. The main apartment types are improved and finely decorated large flats with a construction area of ​​approximately 143 square meters, 188 square meters, and 225 square meters. They are equipped with independent elevator halls as standard and are transparent from north to south (except Building X). They face south on all four sides to the greatest extent to achieve transparent lighting; wide halls of approximately 7.65 meters, 6.2 meters, and 9 meters to achieve a broad field of vision; LDKB integrated design greatly improves the utilization and diversity of space, and enhances the lighting and transparency of indoor space.

Text/Duan Wenping Photos/Provided by the company (except those with signature)

Edited by Yang Juanjuan and proofread by Wang Xin