developers’ official announcement of price increases and “guaranteed price agreements” are gimmicks or is the market recovering?
2024-09-27
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
real estate companies have started tactical "protection".
recently, many real estate companies in chengdu have officially announced that the unit prices of all their projects for sale will increase by 2%; in addition, "guaranteed price" marketing has also returned to the scene. many developers, including central enterprises, have launched "guaranteed price agreements" to allow home buyers to "boldly "enter the market.
many real estate companies in chengdu officially announced price increases
recently, many local real estate companies in chengdu have announced to increase the prices of their projects for sale by 2%.
public information shows that on september 20, chengdu jiahexing real estate development co., ltd. issued a document stating that taking into account the current chengdu real estate market dynamics, development and construction costs and other factors, starting from october 1, the unit prices of all residential projects for sale under the group will be increased. 2%.
the above-mentioned document mentioned, "each project company and marketing team are required to quickly and properly complete the signing process for subscribed but unsigned houses to ensure that the transaction is completed quickly and smoothly. at the same time, for intended customers who have not yet completed the purchase of a house, each project company and marketing team must actively perform duty to inform”.
the paper confirmed the authenticity of the document from the project sales office of chengdu jiahexing real estate development co., ltd. a marketing staff member of a project of the group located in shuangliu district said that it was previously sold at cost price. even if the price increases subsequently, the project price is still more cost-effective than surrounding properties. the above-mentioned personnel said that the price of the project will increase from october 1st on national day, and there will still be certain discounts before the holiday.
on the same day, chengdu west jinsha ludao real estate development co., ltd. also issued a follow-up document stating that taking into account the current real estate market dynamics and the company's cost factors, the unit prices of all the company's on-sale projects will be increased by 2% starting from october 1.
regarding the move by real estate companies to raise housing prices, local industry insiders said that the aforementioned companies and projects are not representative in chengdu. chengdu projects themselves go up and down, and a 2% increase is considered a normal marketing move by companies.
the true effect of the official price increase is still unknown. however, the relevant person in charge of jiahexing real estate company said in an interview with the media that releasing such information also hopes to help stabilize market expectations and confidence.
the paper has noticed that before these two real estate companies, in august this year, sichuan zhongmao real estate development co., ltd. also officially announced a price increase for its projects in chengdu. at that time, the company said that starting from august 5, 2024, it would adjust the average sales price of its jinjiang district project by the same 2% increase.
according to the paper, the above-mentioned projects in sichuan zhongmao are still in the liquidation stage. according to the sales staff of the project, there are still more than 20 units for sale out of 208 units. housing is priced at one price per room. during the mid-autumn festival, a "1 point discount" was launched, and applications are still available.
from a national perspective, the official announcement of price increases by real estate companies has not caused a large-scale "following the trend." the reason why chengdu jiahexing and other real estate companies have chosen to raise prices may also be related to the fact that beike acquired land in chengdu at a high premium. on the day the company published the document, beihaojia (chengdu) real estate co., ltd., a subsidiary of the real estate agency giant shell, successfully bid for the h12 plot of the third phase of the financial city in jinjiang district, chengdu. the total transaction price was 1.076 billion yuan, with a premium rate of 42%, directly refreshing the floor area in chengdu. land price records.
the sichuan branch of the china index research institute said that since the beginning of this year, the chengdu market has been consistent with the national situation. the transaction area is in a downward channel, but the transaction volume still ranks first, and the market resilience remains. prices in core areas remain stable, and high-quality high-renovation projects in some hotspot areas are still setting new transaction prices and maintaining a relatively good pace of sales. the peripheral area shows a trend of exchanging price for volume.
real estate companies promote "price-insured agreements" and local governments research and develop "price-stabilizing insurance"
in addition to official price increases announced by real estate companies, some real estate companies have also launched "price guarantee agreements" to allow home buyers to "boldly" enter the market and avoid worries about price cuts in the future.
according to "wenzhou daily", wenzhou poly recently launched a "guaranteed price agreement". one of its projects in wenzhou promised that "if similar houses (residential only) in the project are signed online at a later sales discount lower than the buyer's existing discount (compared to the registered price), there may be additional gifts include property fees, parking spaces, home decoration packages and other disguised discounts in any form, and you can check out without any reason (interest on the house payment is not included)." not long ago, guangdong poly and sichuan poly also announced their “guaranteed price” plans for some of their real estate projects.
the above-mentioned article mentioned that for some time, in order to realize the return of funds in a short period of time, some real estate companies have directly or in disguised price reductions, which has intensified the wait-and-see mood of home buyers, shaken the confidence of the real estate market, and affected the stable and healthy development of the real estate market. many potential home buyers said that as home buyers, they don't know whether the current housing prices will fall, and everyone is afraid of standing "halfway up the mountain."
liu shui, corporate research director of zhongzhi research institute, believes that "guaranteed price" is part of poly's promotion plan. at the beginning of september, poly announced the "gold, nine, silver and ten guaranteed buying plan" which "guarantees the price and guarantees the price", which mainly involves such aspects as guaranteeing the price, guaranteeing special discounts, and guaranteeing occupancy. "guaranteed price" is only one aspect of it.
he believes that "guaranteed price" is also a marketing tool to promote the decentralization of commercial housing. commercial housing is an asset. buyers purchase commercial housing not only for their own use, but also for value preservation and appreciation. currently, house prices in many cities have dropped significantly. as house prices fall, buyers are reluctant to enter the market. if the "guaranteed price" is promised, it will dispel the concerns of home buyers about falling house prices, eliminate the wait-and-see mood of home buyers, and help de-market the project.
according to the "yangcheng pai" report, new city group recently launched a 5-year value-preserving service for its newly launched projects in tianhe district, guangzhou, in response to the "old-for-new" property action. during the five years after the buyer purchases the project, if the house price drops, the company can recover the purchased unit at the price at the time of sale. in recent years, real estate projects with “guaranteed price” services have been launched frequently across the country. for example, last year, poly yunxi in zhaoqing, guangdong launched a price guarantee agreement, which stipulates that the price shall be guaranteed based on the lowest registered total price of similar products. during the price guarantee period, the registered total price of the products sold by the project shall not be lower than the total registered price of the products sold in the project to which it belongs. if the total registered price of commercial housing is violated, customers have the right to apply for check-out before june 30, 2023. in august last year, shenzhen jinshuo huafu also launched a “guaranteed price agreement”.
local governments are also working hard to stabilize the property market and have issued documents to encourage developers to "insure" new homes. the hengyang municipal government office issued the "several measures to further promote the stable and healthy development of the real estate market (trial)" in september this year, proposing to support insurance companies in researching and developing new types of real estate guaranteed property insurance and stable price insurance, and encourage developers to purchase insurance.
the industry believes that "price guarantee" is conducive to stabilizing housing prices and conveying confidence in the development of the industry. some real estate companies have implemented a "guaranteed price" plan. if the marketing reduction effect is good, other real estate companies may follow suit, but this will also test the real estate companies' ability to grasp market trends and their confidence in their own project products. in addition, real estate companies' "guaranteed prices" help buyers stabilize housing price expectations and convey confidence in the development of the industry.
real estate has continued to benefit, and the industry predicts that the market is expected to bottom out and stabilize.
it is worth mentioning that regulators have mentioned real estate many times recently and continue to inject confidence into the real estate market.
first, the central bank’s policy gift package was implemented. on september 24, the state council information office held a press conference. at the meeting, the main person in charge of the people's bank of china introduced that in terms of housing loans, it will reduce the interest rates of existing housing loans and unify the minimum down payment ratio of housing loans, including guiding commercial banks to reduce the interest rates of existing housing loans to the average rate of new mortgage loan interest rates is expected to fall by about 0.5 percentage points. the minimum down payment ratio for second home loans will be lowered from 25% to 15% at the national level, and the minimum down payment ratio for first and second home loans will be unified.
then the political bureau of the cpc central committee held a meeting on september 26 to analyze and study the current economic situation and plan the next step of economic work. the meeting emphasized that it is necessary to promote the real estate market to stop falling and stabilize, and to strictly control the increment, optimize the stock, improve the quality of commercial housing construction, increase the intensity of loans for "white list" projects, and support the revitalization of idle land. it is necessary to respond to the concerns of the masses, adjust the housing purchase restriction policy, reduce the interest rate of existing mortgage loans, speed up the improvement of land, fiscal and taxation, banking and other policies, and promote the construction of a new model of real estate development.
the industry predicts that housing support policies will be further strengthened from the fourth quarter to the beginning of next year. the real estate market is expected to hit a phased bottom and then stabilize. the decline in sales and housing prices is expected to narrow at the margin, the debt repayment pressure of real estate companies will be alleviated, the liquidity risk of real estate companies will be alleviated, and the land market in first-tier and some key second-tier cities may recover marginally first. the "three major projects" construction projects, including the construction of affordable housing, the construction of public infrastructure for both leisure and emergency use, and the renovation of urban villages, may accelerate the implementation of project construction, and the real estate investment trend may first be suppressed and then stabilized.
the paper reporter ji simin
(this article is from the paper. for more original information, please download the “the paper” app)
