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Cailianshe News, August 21 (Reporter Li Jie)A real estate project in Longgang, Shenzhen, suspended sales shortly after a significant price reduction.

Recently, there was market news that after the Shenzhen Qincheng Dayu Mansion project, which had been suspended for more than a year, resumed sales, some houses were sold at a price of nearly 50% off, which caused resistance from early home buyers. The project has currently suspended sales.

"The houses launched in the Yufu project have a unit price starting from 21,000 yuan per square meter for small units and a total price starting from 1.8 million yuan. The unit price of large units is around 26,000 yuan to 27,000 yuan per square meter. On this basis, if you participate in group purchase discounts, the price will be even lower." A real estate agent in the Longgang area told reporters.

It is worth noting that the average registered price of the above-mentioned project when it obtained the certificate in May 2022 was 42,000 yuan/square meter; based on this calculation, the sales price of this property is equivalent to a 50% discount on the average registered price.

However, after the substantial price cut, the project was resisted by early owners. In a petition document from a representative of the owners of Yiyu Mansion, early owners demanded that the project stop selling units from August 17, and that the project compensate the owners for the difference in price from illegal sales. Some owners also proposed that the developer should clarify the solution for refunding the house after the house is moved out.

The above-mentioned appeal document shows that the project has currently stopped all sales, and the specific results of other appeals from early owners have not yet been announced.

"After the early owners went to the Yufu sales office to defend their rights, the project sales office was temporarily closed to resolve the dispute and sales were also stopped. After the early owners' demands are resolved, the sales office should reopen." The real estate agent in the Longgang area told reporters.

It is reported that Qinchengda Yufu is one of the core projects in the Wulian area of ​​Longgang Street, Longgang District. The project developer is Shenzhen Qinchengda Real Estate Co., Ltd. The project was launched in 2022, but due to financial problems of the developer, the project was suspended in 2023.

In order to ensure the delivery of the building, the project introduced a local urban investment company, and the project was able to resume work. According to an announcement released on August 12, 2024 by the WeChat public account "Qincheng Dayu Mansion", the Qincheng Dayu Mansion project introduced a state-owned enterprise, Shenzhen Longgang Ancheng Investment and Operation Co., Ltd., to cooperate and assist in the operation and delivery of the project. The project has thus resumed sales.

However, local industry insiders said that the project was suspended again less than a week after resuming sales due to excessive price cuts.

"The block where Qincheng Dayu Mansion is located is in the north of Longcheng. Affected by the overall environment of the region, this block has always been one of the low-price areas in Longgang, and the surrounding urban landscape is also dominated by factories and farmers' houses. During the period of rising real estate market, the price of new houses in the area broke through the 4-digit range, but after two years of adjustment, many new housing projects in the area are currently on discount promotion, and the registered prices of properties on sale have returned to the 3-digit range, and there are even projects with a unit price of 2-digit after discount." Sun Hongmei, senior analyst at the South China Branch of China Index Academy, told reporters.

It further stated that even so, the various promotions launched by these projects may not necessarily attract enough customers, and the sales progress is still lower than expected. Faced with so much inventory and competing products, in order to quickly recover funds, developers can only find ways to stimulate prices to increase sales rates.

"Some real estate companies are still short of funds. In order to recover funds as soon as possible, a small price cut for some projects can no longer meet the need for fund recovery, and they can only slash prices and sell off projects." A senior executive of a real estate company headquartered in Beijing told a Cailian reporter.

According to the monitoring data of China Index Academy, from January to July 2024, a total of 14,751 commercial residential units were sold in Shenzhen, with a transaction area of ​​1.5368 million square meters, a year-on-year decrease of 22%.

Sun Hongmei said that the Shenzhen property market is in the recovery stage of the adjustment process, but the sustainability and strength of the recovery need further observation. "Whether the Shenzhen property market can continue to improve still requires further easing measures in terms of policies, including reducing transaction taxes and fees, lowering interest rates, and relaxing purchase restrictions, so as to drive the property market to continue to stabilize."

In fact, as the real estate market continues to adjust, many places have cancelled sales price limits. Since the beginning of this year, many places have gradually optimized the price review mechanism. Some cities have expanded the range of pre-sale price developers' independent floating, and some cities have further optimized the price review process.

It is understood that since the beginning of this year, cities such as Wuhan, Zhengzhou, Shenyang, Lanzhou, Zhengzhou, and Ningde have clearly stated that they will no longer implement price guidance for newly built commodity sales, that is, they have cancelled sales price limits. Zhuhai, Wuhu, Yangjiang and other places have optimized price limit policies, such as shortening the time interval for adjusting registered prices and canceling floor price difference limits.