According to research institutions, the national price index for new houses in 70 cities fell by 0. 7 per cent in may, a decline of 0. 1 percentage points in 12 consecutive months compared to april, while the price index for second-hand houses, more reflective of market heat, fell by 1. 0 per cent for 14 consecutive months, an increase of 0. 1 percentage points over april and the largest decline in nearly a decade。
In comparison, the prices of used houses in the six towns of guangzhou, nanjing, xiamen, wuhan, xuzhou and wenzhou have fallen by more than 10 per cent in one year. Of these, xuzhou was the only city with an average decline of over 10 per cent over the same period of the previous year in january-may。
The prices of second-hand houses in beijing, shanghai and shenzhen fell by 8. 6 per cent, 7. 9 per cent and 9. 2 per cent respectively。
This was also the direct result of the largest drop in the average for the first-line cities, 9. 3 per cent, compared with 7. 5 per cent and 7. 3 per cent for the second-line cities, respectively。
However, according to zhang bo, director of the 58 ambien institute, while the price ratio of second-hand houses in the first-line cities has continued to decline, the short-term increase in market turnover, particularly in shanghai and shenzhen, has become more evident since the new deal of 517 came to a halt, and there has been a clear trend towards the bottom of prices in the second-line cities, “a number of which have experienced excessive price drops in the bottom “in the process of bottom-up”, which will be corrected as the market returns back to normal”
Zhang bo indicated to the network of observers that there would be a relatively marked increase in the real estate market after the new deal 517 and that, while this increase would not lead to a rapid reversal in the market, especially at the house price level, the transaction cycle for a second-hand house would be gradually reduced and the buyers would begin to show signs of a change in the market's expectations。
The chief research fellow of the centre for housing policy research in guangdong province, li yuja, also stated that, as the policy came to fruition, a further rebound in the volume of trade in hotspot cities was expected in june and the price of new and second-hand houses on all fronts would gradually peak。
At the same time, it was stressed that the policy has yet to be strengthened. “on the one hand, the acquisition of re-financing stocks deployed by the state has remained unattainable, and, on the other hand, although mortgage rates have not been set down, interest rates on the first flat have recently fallen by about 30 basis points compared to the pre-new deal period, and are still higher than no-risk rates (e. G., the interest rate on the 10-year national debt)
It is worth noting that a number of other marketers have expressed concern about the financial risks that may arise from the continuing decline in housing prices, in particular the recent publication of “free house delivery” on social platforms by a number of new visitors from the great bay region and the second-tier cities in the centre-west。
The director-general of research of the centre for thoughts of the institute of eviction has made a drastic leap to the point that local markets are at a stage of deep, comprehensive and general adjustment and that, although the problem of financial risk in second-hand homes has not yet been explicitly mentioned, it is necessary to provide early warning of the financial risk associated with second-hand homes, given that such a continuing decline in prices could put high pressure on some high-level interface projects or lead to “negative assets”。
