Ganxian District of Jiangxi Province calls for the suspension of special-rate housing media: is the regulation limited to increase or decrease?

 Ganxian District of Jiangxi Province calls for the suspension of special-rate housing media: is the regulation limited to increase or decrease?

On March 6, in response to media reports about the suspension of special housing in Ganxian District, Ganzhou City, Jiangxi Province, the relevant staff of Ganxian District Housing and Construction Bureau responded that they did not know and hoped that the media would wait for a unified response. The relevant staff of Ganzhou Real Estate Administration responded that there is no such regulation in Ganzhou at present, and Ganxian District stopped the special housing.

In this regard, industry insiders believe that special housing may lead to new market problems, which also means that some local governments will intervene in some deliberate price reduction. Only Ganxian District calls for the suspension of special housing, which is also the embodiment of the general direction of regulation and control of one city, one policy in 2019.

Ganxian District Housing and Construction Bureau to rectify the special housing

According to media reports, on March 4, Ganxian District Housing and Construction Bureau issued a notice to rectify the sale of special housing. All development enterprises are required to stop the sale of special housing immediately, and all special housing sales must be submitted to Ganxian District Housing and Construction Bureau and Ganxian District Price Bureau for examination and approval; commercial housing contracts with the same type of housing transaction unit price lower than the average transaction price of the same type in February of the project are suspended for the record; and all development enterprises formulate emergency preparedness measures caused by price reduction before March 5 for the record.

Why did Ganxian District rectify the special housing? What about the local special rate housing? According to a preliminary survey by reporters of the New Beijing News, discount concessions are prevalent in Ganxian District.

On March 6, the reporter saw Xinquan Shuxiangyuan, located in Meilin Wetland Park, on a real estate network platform, offering a discount price of 6468 yuan per square metre for the Spring Festival. The average price of the project was 7500 yuan per square metre when it opened on October 3, 2018. New Beijing News reporter learned from the sales staff by telephone that the average sales price is 7000 yuan per square meter. The discount price of 6468 yuan per square meter is also available, but only for large apartments.

The information of Baoli Jiafu Lingxiushan building on Gannan Avenue shows that the average price is 7,500 yuan per square meter, but there are 9 rebounds. New Beijing News reporter learned by telephone from the sales staff that the Spring Festival preferential activities are still continuing. But the specific concessions can only be notified at the sales office. According to the sales staff, the discount rate is not small.

As we all know, house price has always been the most sensible topic in the real estate market. This time, Ganxian District of Ganzhou City, Jiangxi Province, manages and controls the special-rate housing, which has aroused the attention of the market.

In the off-season or downward cycle of the real estate market, bargain housing has always been an aphorism and an excuse for price reduction. The so-called bargain houses also include those with high discounts and preferences.

Yan Yue, director of research at the think tank center of Yiju Research Institute, thinks that from the content of the rectification of Ganxian District in Ganzhou City, many market problems may have arisen in the past. Therefore, it will be mentioned that developers are required to formulate emergency preparedness measures caused by price reduction and report them to the archives.

Yan Yuejin believes that, according to past market experience, the sale of bargain houses has caused many old ownersdissatisfaction, and even some built-in bargain houses, affecting the fairness of the transaction. In addition, the emergence of a large number of special housing may also affect market expectations, resulting in difficulties in trading.

Others in the industry believe that during the period of rising house prices, enterprises are required to declare pre-sale prices mostly in order to control the rise of sales prices, but in the downward stage of house prices, sales prices are lower than pre-sale prices, which is also a new problem in the new era.

Does the regulation limit increase or decrease?

Although the surface of Ganxian District is to rectify the sales policy of special housing, in essence, it has made adjustments to the current housing price control policy. This is obviously a big signal. Yan Yuejin, director of research at the think tank center of Yiju Research Institute, said that this indicated that policy would also interfere with some deliberate price reduction projects. For some blind price cuts that interfere with market expectations, they will also be stopped. For example, some cities are actively adjusting their policies when the market is cooling down.

It is reported that since last year, because of the uncertainties in the market, many housing enterprises have reduced their prices actively or passively to prevent future risks by reducing prices and promoting the return of funds. Hengda also launches one or two concessional activities every year.

In August 2018, Hengda advertised 8.9% discount for all residential buildings in China. Hengda has also launched a price reduction promotion strategy this year. Some projects around Beijing have a discount of less than 8%.

Whether leading housing enterprises or local small and medium-sized housing enterprises, there has been a transition from small discount concessions to special housing, the price reduction has been increasing.

However, the case of Ganxian District calling off special price houses does not exist in isolation. On February 2, a circular issued by the Pizhou Real Estate Chamber of Commerce in Jiangsu Province said that malicious price reduction should be interviewed, price war should not be provoked, and advertising slogans pushed below the record price should not be issued. Once the news was released, it attracted wide attention in the market.

However, the person in charge of the relevant departments in Pizhou responded to Xinjing reporters and said, Shaozhous house price is that it (refers to the Real Estate Chamber of Commerce) can not be reduced if it is not allowed to fall? Real estate is also a commodity, price reduction is also a market behavior, as long as it is not malicious price reduction, we will not intervene, but according to the spirit of the superiors to curb the rapid rise of housing prices.

Is the market going up or down? Yan Yuejin believes that in the near future, the price strategy of Housing enterprises has been polarized, some prices have increased and some prices have decreased, and the market is still vague about the price trend. As the pace of pre-sale license issuance accelerates, the price itself is expected to rise, which is related to many relatively high pricing costs. But if there is any arbitrary price increase, it will inevitably face control.

Source: Shi Jianlei_NBJ11331, responsible editor of Beijing News