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After the number of second-hand housing transactions exceeded 10,000 for two consecutive months, both the market atmosphere and the mentality of buyers and sellers have quietly changed. The decline of two data is particularly obvious: the increase in the number of new listings, which once doubled after the new policy, has quickly fallen from a high level; at the same time, the number of properties that have significantly reduced their prices recently has significantly decreased.

Industry insiders said that from the end of July to mid-August, the online signing volume of second-hand residential properties fluctuated greatly in a single week, indicating that the market has entered a new round of game.

The real estate market has entered a new round of game.

"Price cuts to promote transactions" is still the mainstream market

After the "5.28" new policy, Guangzhou completely cancelled the sales restriction policy, bringing a wave of "listings" to the second-hand property market. The increase in the number of houses listed for sale has also intensified competition in the second-hand market. Even if the transaction heats up, it is not faster than the growth rate of new listings. However, the situation is improving. According to Hefu Big Data, the growth rate of new listings, which once doubled after the new policy, has quickly fallen from a high level. Judging from the new listings in various districts, most areas have seen a decline in the number of new listings, but the extent of the decline varies. Among them, the decline in the number of new listings in the city center and suburban areas is relatively large, while the decline in the number of new listings in the outer suburbs is relatively small, resulting in the current pressure on the second-hand housing market in the outer areas to sell out is still relatively large.

It is worth mentioning that although the growth rate of new listings has fallen from a high level, the stable increase every week still brings considerable pressure to the areas with large listings. Whether in the city center or the peripheral areas, "lowering prices to promote transactions" is still the mainstream market.

At the same time, it is worth noting that the number of properties with significant price cuts has also decreased significantly. According to Hefu Big Data, the proportion of transactions with price cuts of 10% to 15% has dropped rapidly from 28% in June to 23% in July, a reduction of 5 percentage points. In fact, the signs of a decrease in the number of properties with significant price cuts were already evident in June. The proportion of second-hand housing transactions with a drop of more than 15% has dropped from 15% in May to 8% in June. At present, the mainstream price cuts in Guangzhou's second-hand property market are within 10%, and more than 60% of the cases are within this range.

The impact of reduced bargaining space is gradually becoming more prominent

In this regard, a relevant person in charge of the Hefu Research Institute said that the sharp drop in the number of properties with significant price reductions is closely related to the recovery of Guangzhou's second-hand property market.

It has been two months since the "May 28" new policy was implemented. There is no doubt that it has promoted the recovery of the second-hand market, and has obviously reversed the market expectations of buyers and sellers. With the recovery of confidence in the future market, the mentality of second-hand home owners has also rebounded from the bottom, gradually turning from weak to strong. At present, the average bargaining space in Guangzhou's second-hand residential market has been below 8% for two consecutive months, and compared with the previous high, the bargaining space has shrunk by 0.5 percentage points.

Judging from the current situation, the owners' mentality has become stronger, and the number of properties with significant price cuts has dropped sharply, and its impact on the recovery of Guangzhou's second-hand property market is gradually becoming more prominent.

Data released by the Guangzhou Real Estate Agency Association show that since mid-July, the number of online signings for second-hand residential properties in Guangzhou has been declining month-on-month for several consecutive weeks. All indexes declined in August; the transaction volume index fell by 9.07 percentage points to 41.82; the consumer market willingness index fell by 4.51 percentage points to 44.55. The reason is that since the introduction of the "May 28" new policy, some of the housing demand that was on the sidelines in the early stage has been released, but the majority of prospective homebuyers in the market are still on the sidelines. Although the policy continued to increase in July, the market is currently in the traditional off-season, and the positive effect of the "May 28" new policy has gradually weakened. There are obvious signs of cooling market activity, and it is expected that the transaction volume will decline slightly in August.

Under such circumstances, it is expected that the market is brewing a new round of game, and even for price reductions, differentiation is becoming more and more obvious. Taking Panyu District as an example, the price reduction of the largest price reduction can reach 600,000 to 1 million yuan, while the price reduction of the smallest price reduction is only 50,000 yuan. Owners who want to sell their houses still have to set a reasonable price based on their own needs and house quality.

Text and photos by Guangzhou Daily New Flower City reporter: Liu Liqin
Guangzhou Daily New Flower City Editor: Mai Xiaoying