Ninety percent of Beijings commercial housing transactions have fallen, experts say, or have fallen unabated.

 Ninety percent of Beijings commercial housing transactions have fallen, experts say, or have fallen unabated.

Compared with the pre-regulation, the transaction volume of commercial and residential projects decreased by 90%.

After the strict housing purchase restriction policy was implemented in the first and second-tier cities, commercial and residential projects with unlimited purchase and low total price once became the first choice for outsiders and investors. With the expansion of commercial and residential projects in Beijing, house prices rose. Luo Jun told Zhongxin Jingwei (micro-signal: jwview), Zhonghong Pixel is considered to be the largest commercial and residential project in Beijing. There are more than 9700 apartments in 19 buildings. The workshop has always called this project Shenpan.

Second-hand commercial housing for sale. Photo by Xue Yufei, Zhongxin longitude and latitude

Looking back on the trading situation before the introduction of the restriction policy for commercial projects in March 2017, Luo Jun said: When the real estate market was at its peak, the saying thatbuying houses depends on robberywas not exaggerated for Beijing pixels. Our stores can deal with more than a dozen units in a day. Sometimes the stores are crowded with customers and owners, and there is no place for them to sign contracts. We have to arrange them to sign in other stores. Luo Jun said that when the price was the highest, the unit price of some small apartments reached nearly 70,000 yuan per square meter.

On March 26, 2017, Beijing Municipal Housing and Construction Commission and other departments issued the Announcement on Further Strengthening the Management of Commercial and Office Projects. The announcement stipulates that when the commercial projects sold are re-listed and sold, they can be sold to enterprises, institutions, social organizations or individuals. Individual purchases should conform to the record of no housing and commercial real estate in Beijing, and pay social security or individual taxes for five consecutive years. Commercial banks suspend loans for individual purchases of commercial projects.

China-Singapore Jingwei recently saw in Luo Juns shop that there were only a few brokers in the shop, and no customers came to the door. Luo Jun said that the current trading situation is difficult to compare with that before the regulation, Beijing Pixel currently lists more than 200 second-hand housing units for sale, and the monthly turnover is maintained at about a dozen sets, more than 20 sets in more months and less than 10 sets in less months.

According to the aforementioned regulations promulgated in March 2017, the minimum dividing unit of newly-reported commercial projects of development enterprises shall not be less than 500 square meters; for commercial projects under construction (including on-sale) of development enterprises, the object of sale shall be legally registered enterprises, institutions and social organizations. After the policy was promulgated, the trading situation of new business-run projects in Beijing declined sharply. According to the data provided by the Central Plains Real Estate Research Center, from April 2017, the first month after the introduction of the purchase restriction, to September 2019, 9 914 commercial projects were traded in Beijing, while 99 631 were traded in the 30 months before the regulation and control, and the volume of transactions dropped by about 90% annually.

02 Price Drop 40% Owner Psychological Change

Exterior of Lincoln Park project. Sino-Singapore Longitudinal and Latitudinal Photography by Xue Yufei

Trading volume has fallen, and the prices of commercial projects in Beijing have fallen along the way. Taking Beijing Pixel as an example, the price of the compound apartment in this district has been reduced from nearly 70,000 yuan per square metre to about 41,000 yuan per square metre. The price of the flat apartment is between 27,000 yuan and 28,000 yuan per square metre, with a reduction of about 40%.

Zhongxin Jingwei sees in Pixel North District of Beijing that a 46 square metre duplex apartment is quoted at 40737 yuan per square metre. Because of the lack of loans, buyers need to pay 1.88 million yuan at one time, plus some taxes and fees. However, Luo Jun said, the owner is doing business, now sincerely sell, the price can be chatted again, drop tens of thousands of yuan is no problem.

The price of the other three apartments Luo Jun showed us can also be discussed. He said: Now the ownersmentality has changed, not as tough as before, can accept the price reduction. There is a flat apartment with an area of 50 square meters, which has not been sold for a long time, because the price is too high, the owners do not want to reduce the price, but later the price of this type of apartment is falling, the owner can not afford it. Now the listing price is 1.45 million yuan, which has dropped nearly one million yuan from the highest point.

Lincoln Park is a well-known commercial and residential project in Yizhuang District of Beijing. According to data provided by real estate agent Zheng Ming (not his real name), 18 sets of two-bedrooms with an average price of about 385,000 yuan per square meter have been sold in Lincoln Park in the past six months. The listing price of a 67 square metre commercial housing is 2.45 million yuan. However, Zheng Ming disclosed that the psychological price of the owner is 100,000 yuan lower than the listing price.

The environment and supporting facilities of Lincoln apartment district are good in Yizhuang. The commercial and residential projects were sold to 60000 yuan / square meter before the purchase restriction. Now, the price of some houses facing the bad direction has been reduced by half. Zheng Ming told Sino-Singapore Jingwei.

03, the bubble gradually squeezed out, experts say, or drop or drop.

In the view of some insiders, with the price reduction, the value of some commercial and residential housing projects with better location and mature supporting facilities began to return, which has certain attraction for the rigid demanders with greater capital pressure and investors pursuing long-term investment value.

Yan Yuejin, research director of the think-tank center of the Yi Ju Research Institute, believes that strict regulation has made the market bubble clear. Some commercial housing projects still have the advantages of lots, matching and other aspects, and also have residential functions. Such projects may have entered the stage of no drop or no fall.

From the investment point of view, Luo Jun believes that Beijing Pixel is close to Beijing Metro Line 6, and the surrounding facilities are basically mature. In addition, the residential area is civil water, electricity and natural gas. The occupancy and rental rate of the residential area has been high. Now, the total price of more than 50 square meters of duplex apartments is more than 2 million yuan. If you dont live, you can give them to some long-rented apartments for rent, and get 8 per month. The rent of 1000 yuan is not a problem. The rate of return on rent is much higher than that of housing.

Zhang Dawei pointed out that some commercial housing rent returns can reach 3%~5%, from this point of view, the investor housing has a certain value. However, commercial housing can not be lent, becoming a more difficult investment threshold.

The living environment here can not be compared with residential quarters, the biggest advantage is cheaper, Luo Jun said of the trend of commercial housing prices. Whether prices will fall again, it is difficult to say, I can not judge.

(Original title: Trading volume dropped by 90%, second-hand house price dropped by 40%. Can Beijing commercial housing be bought now? )