many real estate companies across the country have announced price increases. will more real estate companies follow suit?
2024-09-29
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after the meeting of the political bureau of the central committee proposed for the first time that "we must promote the real estate market to stop falling and stabilize," there have been constant voices in the market about price guarantees and price increases. on september 28, a real estate company in henan announced a price increase of 2%. prior to this, many real estate companies in sichuan also announced price increases, and the central enterprise poly launched a "price guarantee plan."
many real estate companies in henan and sichuan have increased prices
on september 28, henan local real estate company henan zhuokai real estate co., ltd. issued a document stating that starting from 24:00 on september 30, the prices of the properties for sale in its evergreen jinshuichenyuan project would be increased by 2% (about 300 yuan/ square meters).
the document mentioned that the construction work of the evergreen·jinshui chenyuan project is progressing in an orderly manner. the entire period has been capped and the secondary structure is about to be completed. it has reached the conditions for quasi-existing housing sales, and the project construction funds are sufficient and the cash flow is stable; via the group after multiple inspections and judgments, the quality of the evergreen jinshui chenyuan project is particularly prominent in the region; the group’s operation management center and marketing management center considered and decided that as the group’s key guaranteed price project, the evergreen jinshui chenyuan project will be effective from september 30, 2024 to 24 : 00 onwards, the prices of properties for sale increased by 2%.
previously, on september 20, a real estate company called chengdu jiahexing real estate development co., ltd. suddenly issued a document announcing that it would increase the unit prices of all residential projects for sale by 2%.
in this document titled "announcement on the price increase of all residential projects for sale under the jiahexing real estate group", chengdu jiahexing told the group's project companies, finance department, marketing department, and the majority of property owners who want to buy houses, comprehensively considering the current situation in chengdu due to factors such as real estate market dynamics and development and construction costs, the board of directors of the group company has studied and decided that starting from october 1, all (5) of the group's subsidiaries such as "jiahe huafu", "jiahe binhu song" and "jinsha yipin" will be the unit price of properties for sale increased by 2%.
according to media reports, reporters saw on lianjia that the reference average prices of new houses in "jiahe huafu", "jiahe binhu song" and "jinsha yipin" are respectively 14,000 yuan/square meter, 23,000 yuan/square meter, 32,500 yuan/square meter. based on this estimate, the prices per square meter of new homes in these three properties will increase by 280 yuan, 460 yuan, and 650 yuan respectively.
it is understood that as of september 27, there are three real estate companies in chengdu that have officially announced unit price increases, namely sichuan zhongmao real estate development co., ltd., chengdu jiahexing real estate development co., ltd. and chengdu west jinsha ludao real estate development co., ltd. both announced that starting from october 1, the unit prices of all the properties for sale in the company's projects for sale would be increased by 2%.
state-owned enterprise poly launches “price guarantee plan”
if the above-mentioned real estate companies increase their prices, the central enterprises will protect their prices by guaranteeing profits.
on september 26, news frequently spread about the announcement of “guaranteed price plans” for multiple urban projects under the central enterprise poly development.
for example, poly tianjun project, a subsidiary of wenzhou poly, announced that “if similar houses (residential only) in the tianjun project are sold online at a later discount that is lower than the buyer’s existing discount (compared to the registered price), additional property fees and parking spaces may be given as gifts. , home decoration packages and other disguised discounts in any form, you can check out without any reason (interest on the house payment is not included)."
similar commitments are also being promoted simultaneously in some projects of xi'an poly, sichuan poly, jinan poly, chengdu poly, and guangdong poly. for example, xi'an poly launched "buy expensive and enjoy worry-free exchange; exchange old for new, save up to 100,000 yuan", sichuan poly poly's more than 20 projects currently on sale have participated in the launch of price guarantee plans such as "guaranteing the price until next year, buying a good house without worries, exchanging high prices for low prices, and 'paying the price' for expensive purchases."
according to public information, as early as mid-september, guangzhou poly launched the gold nine and silver ten “guaranteed price plan.”
will more properties participate?
industry insiders believe that price guarantees and price increases are both corporate marketing methods, which help promote the depuration of commercial housing, stabilize housing price expectations, and convey industry development confidence.
li yujia, chief researcher of the housing policy research center of the guangdong provincial institute of urban planning, said that if leading companies take the lead in "guaranteing prices" and "checking out without reason", it will help stabilize supply-side prices. the recent decline in housing prices is largely due to the competition among real estate companies to reduce prices, leading the market to wait and see in anticipation that housing prices will continue to fall. this is not only detrimental to market sales, but also worsens expectations of falling house prices.
will more properties be involved? liu shui believes that if a company that implements a "guaranteed price" plan has better marketing reduction effects, 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 project products.
source/upstream newsphoto/guangzhou daily new flower city reporter: mo weinongguangzhou daily new flower city editor: zhao xiaoman
