Increase of residential inventory in Baicheng, online sales blocked, long selling cycle

 Increase of residential inventory in Baicheng, online sales blocked, long selling cycle

Offline sales of real estate enterprises press the pause button

According to the statistics provided by Zhongyuan Real estate to the Securities Daily, from January 24 to February 3, there were 96 sets of online signs for newly-built commercial housing in four first tier cities of beishangguangshen, less than 100 sets. It needs to be noted that the real estate online sign lags behind the sales, but the outbreak has indeed affected the online sign data to a certain extent.

An interviewee told the Securities Daily that he had already bought a suite in Wuhan. Due to the closure of the epidemic, the signing after the Spring Festival was suspended.

Up to now, 31 provinces, cities and autonomous regions have issued documents to suspend real estate related transactions and support the anti epidemic work. Taking Evergrande as an example, 1246 projects nationwide are not allowed to start before February 20, and 1040 sales offices nationwide are not allowed to start before February 20. In other words, almost all offline sales offices across the country have pressed the pause button.

Many corporate marketers cant sit still. Biguiyuan, Evergrande, poly development, Midea real estate, sunshine city and other real estate enterprises go online to sell small programs. These small programs mainly focus on VR, online consultation, appointment, online pricing and other functions.

Online selling has just started, and the effect is not obvious at present. From the perspective of expectation, southern cities have a relatively high degree of acceptance, and indeed a deal has been made. A real estate marketing executive told the Securities Daily that most of these transactions actually come from the existing customers who have seen the real estate before. It is difficult to add new customers and there is a lot of pressure on online marketing.

Some people who had seen the House years ago recently had a transaction, and the transaction completed subsequent orders by phone or wechat. Yan Yuejin, director of research at the think tank center of Yiju Research Institute, told Securities Daily that there are few direct transactions through online platforms, and some of the online transactions are projects with low total price, strong investment attribute and having seen real estate years ago.

In this regard, guoshiying, an analyst at Zhuge housing data research center, said that in the short term, the most direct impact of the epidemic on real estate enterprises is the decline in transactions. Secondly, the delay in land acquisition and commencement of real estate enterprises will lengthen the pace of listing and supply, lengthen the real estate trading cycle, and test the capital chain of real estate enterprises.

Increase of residential inventory and longer selling cycle

I originally planned to buy a house at the beginning of the year, but now I have to wait, at least wait for another two months after the end of the epidemic, because I need to consider the companys business situation and ensure that I have a stable repayment strength before I can buy. One interviewee told the Securities Daily, besides, I will not go to see a house now. Even if the epidemic is over, I will wait for another period of time. Health first.

Affected by the epidemic, some buyers are not very brave to buy houses. The above-mentioned real estate executives told reporters that for real estate companies, cash flow in February is prepared because the Spring Festival is a traditional off-season. In addition, the first quarter is generally not the peak period of debt repayment for real estate enterprises, so at present, the pressure on debt repayment is relatively small, but if the epidemic lasts for a long time, the pressure on enterprises to pay back will be great, especially for some enterprises involving a large number of cash mergers and acquisitions, the capital chain will become very tense.

The demand side itself is weak, and now it catches up with the negative impact of the epidemic. The land buying trend of Housing enterprises in the past quarter will not appear. Now it is more necessary to slow down the pressure of de stocking. The person further said.

According to a research report of Yiju Research Institute, the inventory scale of 100 cities in China will increase significantly in 2019, which will also increase the indicators such as the period of decentralization. By the end of December 2019, 59 cities out of 100 had a positive year-on-year increase in inventory.