state-owned enterprise poly fired the first shot in the "price guarantee" campaign. can the price war among real estate companies be put on hold?
2024-09-26
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"if the later online signing price is lower than the current discount, you can cancel the contract without any reason!"
recently, several project companies under the central enterprise poly development have launched "price guarantee" activities in the "golden september and silver october" to stabilize market expectations, reduce buyers' concerns about price fluctuations, and enhance their confidence in buying houses. specifically, it involves real estate projects in wenzhou, xi'an, sichuan, jinan, chengdu, guangdong and other cities.
for example, wenzhou poly tianjun announced that "price guarantee until delivery, no reason to cancel the contract if the price drops", and the longest period of the activity will last until the second half of 2026. if the discount of the later online sales is lower than the buyer's existing discount (compared with the registered price), or there are any disguised discounts such as additional property fees and parking spaces, the buyer can cancel the contract without reason.
shaanxi poly also launched the "price guarantee worry-free, national day early purchase" campaign, with five projects participating, including poly galaxy tianhui, poly tianjun, poly weiyang puyue, poly tianzan and poly yongshan hesong. the price guarantee scheme includes: worry-free exchange for expensive purchases; exchange old for new, up to 100,000 yuan in savings; national day special discounts up to 2% off, etc.
poly sichuan has also formulated five price guarantee plans and has fully implemented the price guarantee policy in more than 20 projects on sale. the longest period of the price guarantee activity will last until march next year. if the price of the house purchased by the new owner drops later, it will support the replacement of the house with a lower price. after signing the price guarantee agreement, those who meet the requirements can "exchange high for low."
"price guarantee" is not a new concept in the property market. this year, a property project in guangzhou announced a "price guarantee commitment", implementing a price guarantee policy for properties sold during the initial launch period. if the owner finds a discount or the price is lower than that of similar properties before taking possession of the property, the price difference will be compensated. as long as the buyer finds that the property is "overpriced", the developer promises to make up the full price difference.
however, in the past, these "price guarantee" activities often involved a small range of people, and some were only for customers who made transactions on the day of the centralized house selection. the "price guarantee" activity recently launched by the central enterprise poly, on the one hand, involves multiple project companies and many participating projects, and as a leading real estate company, it took the lead in announcing the "price guarantee", which has attracted widespread attention in the market.
in the industry's view, poly, a leading real estate company, taking the lead in "price guarantee" is actually a marketing strategy, but it does play a certain role in boosting current market confidence.
liu shui, director of corporate research at china index academy, said that in september poly announced the "golden september and silver october rest assured shopping plan" of "poly price guarantee, guarantee for expensive purchases", which mainly involves guarantee for bottom line, special discounts, occupancy guarantee, etc. "price guarantee" is only one of the aspects and is also part of poly's promotion plan.
"commercial housing is an asset. buyers purchase commercial housing not only for their own use but also to preserve and increase the value of the housing. currently, housing prices in many cities have fallen significantly, and buyers are reluctant to enter the market. if a 'price guarantee' is promised, buyers' concerns about falling housing prices will be dispelled, which will help the marketing of the project," liu shui believes.
li yujia, chief researcher at the housing policy research center of the guangdong provincial institute of urban and rural planning, said, "if leading enterprises take the lead in maintaining prices and offering no-reason returns, it will help stabilize prices on the supply side." li yujia said that the recent decline in housing prices was largely due to real estate companies competing to cut prices, causing the market to wait and see due to expectations that housing prices will continue to fall. this is not only not conducive to market sales, but also worsens expectations of falling housing prices.
since the beginning of this year, prices in the new home market have continued to decline, and even in first-tier cities, real estate developers have been engaged in "price wars."
according to the data, in august, the sales prices of newly built commercial housing in first-tier cities fell by 0.3% month-on-month, with beijing, guangzhou and shenzhen falling by 0.5%, 0.5% and 0.8% respectively, and shanghai rising by 0.6%; year-on-year, beijing, guangzhou and shenzhen fell by 3.6%, 10.1% and 8.2% respectively, and shanghai rose by 4.9%.
after experiencing a long cycle of falling housing prices, leading companies taking the lead in "maintaining prices". does this mean that housing prices are expected to stabilize?
the political bureau of the cpc central committee held a meeting on the 26th, and pointed out that it is necessary to promote the real estate market to stabilize, strictly control the increase in commercial housing construction, optimize the stock, improve the quality, increase the loan issuance of "white list" projects, and support the revitalization of idle land. adjust the housing purchase restriction policy, reduce the interest rate of existing mortgage loans, and speed up the improvement of land, fiscal and taxation, and financial policies to promote the construction of a new model of real estate development.
looking back at all the politburo meetings, the phrase "promoting the real estate market to stabilize" was first mentioned. yan yuejin, deputy director of shanghai e-house real estate research institute, said that this was the first very clear instruction given by the politburo on the real estate market, and that "stabilizing" included both the volume and the price.
"the politburo meeting made it clear that the next important task for the real estate industry is to stop the decline and stabilize the market. poly, as the current leading real estate company, ranks first in the current commercial housing sales rankings and plays a leading role in implementing the spirit of the politburo meeting," said li yujia.
liu shui also said that if the real estate companies implement the "price guarantee" plan and the marketing and sales effect is good, other real estate companies may follow suit, but it also tests the real estate companies' ability to grasp market trends and their confidence in their own project products. in addition, the real estate companies' "price guarantee" will help buyers stabilize their expectations of housing prices and convey confidence in the development of the industry.
(this article comes from china business network)
