Behind the policy of stop-falling order issued by Enshi, Hubei Province, there is a lot of chaos.

 Behind the policy of stop-falling order issued by Enshi, Hubei Province, there is a lot of chaos.

In fact, there are many cities that warn against market fluctuations, but it is rare for real estate associations to issue red-headed documents to prohibit house prices from falling sharply. Enshis stop-drop order not only arouses controversy in the industry, but also exposes various chaos in the real estate market of this four-tier city.

Ten stop-drop orders issued by the Housing Association

In the Notice issued by Enshi Real Estate Association, a total of 10 price reduction actions are listed, among which the first three items directly point out the specific price reduction figures: high-price record, low-price opening, price reduction in 800-1200 yuan/square metre, different stages of pre-sale and sales, the difference between pre-sale and post-sale price is 300-500 yuan/square metre, no reason not to act in accordance with market rules, opening price consolidation. The volume decreased by 200-500 yuan per square metre over the same period of last year.

Other provisions of the Notice mainly relate to various promotional actions of housing enterprises, such as using low-price attractants as a sales gimmick, causing large fluctuations in the market and changes in house purchase expectations, not pricing according to the law of cost and price, forming a huge contrast between the comprehensive cost and the actual price, releasing low-price information in advance on the grounds of customers, or even collecting mortgages in disguised form without pre-sale certificate. Goods and cards to cooperate with third parties in the form of distribution, electricity sales, etc. to reduce prices and collect deposits in disguised form. Using project funds to deduct housing, internal welfare special housing and other forms of price reduction in disguised form,take the sale price sell-off, the transaction price is significantly lower than the market price,take unfair sales means to arrange sales staff outside other sales offices to solicit customers,in violation of relevant norms, the floor design height will be reduced to about 2.7 meters, burying hidden contradictions for later buyers to live in.

For such a detailed stop-drop order, a marketing director of a brand housing company believes that there is excessive market intervention in terms of price. Developers in a residential area for different types of apartments will cause price differentials because of the different landscape of the residential area, but setting a lower price limit is obviously disrespectful of real estate marketing behavior. The person in charge of housing marketing further said that, for example, the first set a lower limit on the filing price, which is strong administrative control.

However, some local insiders believe that the social response to the cliff-like decline in Enshis house prices is strong. The Housing Association lists 10 main manifestations of the phenomenon of price reduction, conducts investigation and verification of some real estate, and conducts four corresponding measures to guide and correct it, which is essentially conducive to market stability.

The head of marketing of the above-mentioned Housing enterprises also said frankly that the government has not yet issued a control policy, and can only wait and see its change. After all, the operation of enterprises is the first. Enterprises should also have funds to pay government taxes and wages of migrant workers.

Daily Economic News reporter observed that the city that sent articles to prevent falling house prices is not an example of Enshi.

On March 6 this year, Ganxian Bureau of Housing and Construction of Ganzhou City, Jiangxi Province, issued a notice to the housing enterprises to stop the sale of special housing, requesting that from March 3, the commercial housing contract with the same type of housing transaction unit price lower than the average transaction price of the same type in February of the project be postponed for filing.

However, the main body of Enshis limit drop is the local housing association, which is not similar to the administrative instructions of Ganxian Housing and Construction Bureau, but more reflected in the warning level.

Zhang Bo, chief analyst of Anjuke Real Estate Research Institute, told reporters that this years overall regulation and control goal of real estate is very clear, namely three stability. Stabilizing house prices is one of the important objectives of the three stability. Preventing both soaring and falling is the main tone of policy regulation and control.

This year, the differentiation of the national real estate market will be more obvious, the hot second-tier cities will be constant heat, the third and fourth-tier cooling cities will increase, so the future direction of regulation and control will more reflect the characteristics of taking measures according to the city. In the second half of the year, there should be more and more cities to limit the rise and fall of house prices.

Behind the real estate policy, there is a lot of chaos.

Behind such meticulous stop-falling measures in the Notice, the long-standing chaos in Enshis real estate market can not be ignored. For example, in the same area, the price difference is very obvious.

A local insider told Daily Economic News that a project in Enshis South opened at 6,900 yuan per square metre, and now the price is only 6,000 yuan per square metre. Compared with other apartments of the same location and apartment type, prices have also fallen sharply. There is a brand Housing Enterprise in the local price range of 6100-6200 yuan/square metre, while there is a real estate project next to the project selling only 5300 yuan/square metre. For consumers, its natural to choose the cheaper ones, and the market will be chaotic. The person said.

According to reports, generally speaking, brand developers are willing to file the higher the application price, the better, but some small developers in order to quickly ship, they will choose to reduce prices. It is worth mentioning that price reduction is difficult to cause a chain reaction in Enshi real estate market. Because some of the initial land prices are relatively low, later can be low volume, some of the higher land prices, can not move too much on the price of ideas, price war is also not moving.

According to Daily Economic News, the unconventional promotion of Enshi developers has an impact on the market order, and there are many grey areas in the operation process. According to the above sources, although the prices of some buildings in Enshi market have dropped, some projects only receive deposits and do not sign contracts. That is to say, a house buyer is interested in the house, can only decide, can not really buy. At present, many developers have not received the pre-sale certificate, so they advertise on a large scale, collect deposits, and incite the marketsfalse fireahead of time. The above-mentioned marketing officers said that whether the buyers who have paid the deposit after obtaining the certificate can sign the contract smoothly and whether there is the possibility of price difference are all potential risks that can not be ignored. It told reporters that there are some problems in Enshi real estate market at present, and the government has been putting forward various policies to solve them. For example, in view of the problem of pre-sale certificate, the Enshi municipal government requires that the real estate must have pre-sale Certificate in order to publicize the street. However, whether the policy is implemented in place depends on the effect of implementation and specific supervision.

The profits of local housing enterprises are not as good as before.

On the current market situation, a brand of real estate enterprises in Enshi, the local marketing director told the Daily Economic News that Enshis market had been on the rise before this year, but since the second half of last year, the market has been in a slump. After the Spring Festival this year, it began to decline significantly, and now it is the buyers market.

According to the data from Enshi Real Estate Association, in 2018, 48 new commercial housing projects were wholesaled in Enshi, an increase of 14 compared with the same period in 2017; the wholesale area was 191.38 million square meters, up 35.36% compared with the same period in 2017; the total annual sales of new commercial housing was 15.446 million square meters, up 7.29% compared with the same period in 2017; and the total sales volume was 10 billion yuan, compared with the same period in 2017. The increase was 26.58%.

Now, Enshi in the second half of the year there are about 67 projects open, pushing the volume is not too big, obviously less than in the past. The marketing director said.

The price is the same. In 2018, the house price in Enshi was rising slowly. The average transaction price of newly built commercial housing was 6165.58 yuan per square meter, 23.59% higher than the average transaction price in 2017, and 1176.94 yuan per square meter.

Another brand of real estate enterprises in Enshi sales officer told reporters that although Enshis real estate market is more closed than other areas, but last year there was a significant improvement. However, from the first half of this year, the whole market began to decline, and different developers began to promote.

On the surface, developers are overly concentrated in supply, leading to oversupply, but many people in the industry accepted the daily economic news reporters interview. They all said that the reason was that Enshis housing prices rose too fast in previous years, while the local population and income base did not increase substantially. Housing prices had already consumed dividends in advance, and there was a certain bubble.

According to the report of Enshi State Real Estate Association, the inventory de-inventory of Enshi is less than 10 months, and still has a large market potential; while the inventory of new non-commercial housing is high, the existing stock clearance takes about 55 months, and the traffic pressure is high.

It is worth noting that the profit margin of local housing enterprises is also not as good as before. The scissors gap between the commencement and completion of new commercial housing in Enshi in 2018 increased by 167.55% compared with the same period in 2017. In the environment of market sentiment ebbing, the scissors gap between construction and completion keeps increasing, which stimulates the sales promotion of housing enterprises. In 2019, it may form a greater downward pressure on prices, and then squeeze the profit space of housing enterprises.

Source: Daily Economic News Author: Wu Ruofan, Editor-in-Charge: Wang Xiaowu_NF