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hangzhou's once popular "10,000-person lottery" xingfuli, photo by bao jingjing, a reporter from china business news

the houses that could not be grabbed even through the "tens of thousands of people shaking" in the past can now be found at a bargain price.

four years ago, xixi mansion, which set a record in hangzhou for the housing lottery with "60,000 people drawing lots", and zhencheng xingfuli, which had "tens of thousands of people drawing lots" for multiple sales and single-handedly ignited the entire sector, both faced the embarrassing situation of "breaking the issue price" after delivery.

recently, a reporter from the daily economic news found that the lowest transaction price for a three-bedroom, two-living-room apartment of 89 square meters in xingfuli, which has been delivered for nearly two years, has reached nearly 31,000 yuan per square meter. according to qianjiang evening news, the average price of the xingfuli project, including fine decoration, was 26,500 yuan per square meter when it was first opened.

"the second floor was sold for 2.8 million yuan, and the normal floor was around 2.9 million yuan." zhang peng from hangzhou deyou real estate xingfuli store said, "some houses, such as super high-rise buildings with three elevators and four households, were sold for less than 30,000 yuan per square meter."

around june 2020, hangzhou had not yet implemented a sales restriction policy. many owners of xixi mansion listed their properties after receiving their property certificates. at that time, the highest unit price was close to 55,000 yuan/square meter. however, from june 2021 to 2023, the price per square meter fell by between 15,000 and 20,000 yuan.

"89 square meters, 2.45 million yuan, the price is negotiable," said han yong, the agent, to the reporter of china business network. according to a rough calculation, the unit price of xixi mansion has dropped to 27,500 yuan per square meter, which is a clear "break" compared to the opening price of 28,000 to 30,000 yuan per square meter, taking into account the high capital cost at that time.

"a 89-square-meter apartment on the middle floor costs 2.5 million to 2.7 million yuan. the prices of apartments on the lower floors cannot be increased, so we can only reduce them," said han yong.

gao yuansheng, executive deputy general manager of east china region of china index academy, admitted in an interview with the reporter of national business daily: "when these hot properties were launched, the prices were actually inverted. with the decline in second-hand housing prices in the past two years, these second-hand houses are either the same as the previous purchase price or have very little room for improvement. if there was a floor premium at the time, combined with the capital cost, it can indeed be considered a 'break-even'."

according to gao yuansheng, even the asian games village, the hottest area in hangzhou, cannot escape this embarrassing situation.

according to china index academy, the top three projects in terms of second-hand housing transaction volume in hangzhou in august were yangliu county in genbei new city, taoyuan town in lao yuhang and guiguan oriental in asian games village, with transaction volumes of more than 18 units each.

the three buildings in the asian games village - greentown crown oriental, vanke sun city and china resources asian olympic city - have a total of nearly 4,400 residential units. they caused a sensation in the city when they were first launched and houses were hard to come by.

china index academy stated that in early august, greentown crown oriental was delivered and issued the major certificate, with nearly 500 houses listed, ushering in a wave of sales. however, the average transaction price of less than 50,000 yuan per square meter was lower than expected, which also had an impact on the second-hand housing market in the qianjiang century city section.

is the second-hand housing market in hangzhou failing? this is not the case.

in august, a total of 6,298 second-hand houses were sold in hangzhou, with an average daily transaction of 210, a month-on-month decrease of 17.1%. this is the first time that the second-hand housing market in hangzhou has cooled down significantly after four or five consecutive months of high transaction. but even so, the monthly transaction levels in june, july and august are still much higher than the same period in 2023, and also higher than the traditional peak season for home purchases in september and october in 2023.

however, when it comes to housing prices, most landlords are experiencing "pain".

data from the china index academy showed that the price of second-hand homes in hangzhou continued its steady decline in august, with the average transaction price falling by 0.9% month-on-month. "trading price for volume" remains the main feature of the market.

"the situation of price decline also needs to be looked at separately." gao yuansheng analyzed, "some communities were hyped up earlier, and prices have basically bottomed out and stabilized, especially a group of communities where the average price has dropped from around 25,000 yuan per square meter to around 16,000 yuan per square meter. every month in hangzhou, some relatively active blocks will see price adjustments, such as guiguan dongfang in august, so the overall average price has continued to decline."

regarding september, gao yuansheng judged: "the new housing market may be slightly better than the previous two months. the second-hand housing market has stabilized and has remained at a high level for four consecutive months since march. even if it has fallen back in august, it is due to seasonal factors. the overall market demand base is still relatively stable."

"but second-hand housing prices have not shown any signs of stabilization overall, and the trend of 'trading price for volume' is still ongoing."