Source visual china
The economics watch newspaper's client information, although it has led to a second-hand house deal, is still a bit condensed by wang peng, who has been a real estate broker for eight years。
The house is located in the eastern district of beijing city and is a 105-square-metre intermediate three-bedroom in the ring. What are known about primary and secondary schools in the neighbourhood. The shell search network showed that, as at 24 april 2024, the used room in the sector had an average unit price of $103,000 per square metre。
According to wang peng, the total sale price of the house was 7. 1 million yuan, and the unit price was about 67,000 yuan/m2, a new low since 2016. In less than a month, the single price of a house in the same sub-district fell from 86,000 yuan/m2 to about 67,000 yuan/m2, which made him a little bit weird。
In the second-hand house market in beijing, it is not an example of a substantial discount. According to a beijing regional director of an intermediary, after the peak of the march deal, in april, second-hand stock in the beijing market fell and prices accelerated, with prices falling by 10-20 per cent in some of the old districts as compared to march。
According to the official, this downward round of prices, which continued from october 2023 to the present, began to occur only in individual sub-regions, then spread over time, with sub-urban areas falling generally, without discrimination, while urban areas were concentrated in old sub-districts, which generally fell by between 40 and 50 per cent compared to the highest price levels。
Low price
Wang peng has a three-bedroom, small living room and a small district in which property is poorly managed, but belongs to a few elevators in beijing. It was built in the late 1980s as a public housing unit of an institutional unit. Following the remodelling of the house in 1998, the property rights of most houses were sold。
The owner bought the house at a high price in 2023 and intended to leave it for his son to marry, after which, owing to exceptional circumstances, it needed to be converted as soon as possible. In early april, the house was placed online at wang peng's intermediary company, which attracted a number of buyers for advice because of its high sexual price。
The first buyer was able to talk well, and the total final price was $7. 6 million, but the buyer could not make the full payment and needed a loan. Wang peng said that in the current real estate situation it would take time to find a full buyer. When the owner hesitated, the second buyer appeared。
The second buyer sold his house in tunzhou in early 2024 and planned to replace it in the city. He felt that the floors, size and price of the house were in line with expectations, but that the total amount was only $7. 1 million. Although the total price of the house was reduced by $500,000, it was available within seven days and the owner eventually agreed。
This transaction, which appears to be special, has created a new low exchange price for second-hand rooms in the district since 2016. Wang peng said that from 2021 to 2023, the average unit value of most housing sources in the district was approximately $100,000/m2; after the spring season, the transaction price fell by $100,000/m2, but for the first time it was below $80,000/m2。
Similar low-price deals are also taking place in other regions of beijing. In early april, a small two-bedroom house of 57 square metres, built in 2001 in the western ring, was sold at a total price of $3. 4 million at a unit cost of $60,000 per square metre, which has set the lowest unit price in the district since 2017。
Owing to the maintenance of the school district, the price has remained at around $100,000 per square metre for the past two years. One of the directors of the nearby intermediaries informed the economic watch that in march the average unit value of the district was around $80,000 per square metre, a 20 per cent drop from 2023。
The head of the agency said: “when the house was closed, many owners reduced the price to around $70,000 per square metre and some were in a rush to sell directly to around $60,000 per square metre.”
In mid-april, the construction consultant at an intermediary shop in the hoangyang district informed the economic watch that an old sub-section of 67 square metres between the northern ring and the northern ring had been closed for a total cost of $3. 73 million and a unit cost of $56,000 per square metre。
According to the above-mentioned consultant, the house was first registered in november 2023 at a unit cost of $90,000 per square metre. After a number of price adjustments, the billing unit price before the deal has been reduced to $75,000/m2. An exchange price of $56,000/m2 returned the housing prices of the district to the second half of 2016。
The area outside the north-west five ring, where there are a large number of programmers living, has been regarded as the “ceiling” of the house price in beijing. In april, a small section of the malian cave area was sold at a unit price of 49,000 yuan/m2, which was rarely lower than 70,000 yuan/m2; and in april, the unit price of the upper school block returned to 2016 levels。
The owner's compromise
After spring 2024, chengwei, who lives in beijing city, put the change on the schedule, but when he met several buyers, he stopped thinking about it。
The two living rooms currently occupied by cheng wei were purchased in 2016 and, as the children had been raised to junior secondary school, no school district was required, she intended to change a large number of non-school rooms in the same area in order to improve the living environment. In the last month, cheng wei met several buyers, but the bid was generally lower than her 2016 offer。
Chewie said that at the end of march, the sale price for the same house with the district was about $4. 5 million, less than half a month later, and that buyers generally offered less than $4 million. “the intermediary also advised me to lower the price, but i thought i was ready to sell it”。
Not all owners of second-hand houses in beijing have the bottom line, and many of them, for a variety of reasons, eventually have to compromise to the market。
“this house is for the first time hanging out”, an intermediary in the zongmun region in beijing pointed to a set of house sources on the computer screen: “the house is a public house purchased by the owner and has lived for almost 30 years. The two men are retiring and intend to sell their houses and live abroad with their daughters.”
In january 2024, the total cost of this first listing was 5. 5 million yuan and 90,000 yuan per square metre per unit. After the spring festival, in order to sell the house as soon as possible, the owner reduced the total price to $5 million and told the intermediary that there was room for negotiation. Since the card was put up, many people have come to see the house, but they have never made a deal。
In march, the second-hand room in beijing became active and the owner lowered the total price to 4. 3 million yuan. The middlemen thought that the price was easier to settle and the owner was confident, but ultimately disappointed. “the only disadvantage is that the house is on the top floor, and the others are good.” the broker said。
In mid-april, when the market for second-hand houses in beijing returned to normal, the owner was in a hurry to reduce the total price to $3. 8 million, equivalent to $62,000 per square metre per unit。
According to the above-mentioned broker, several buyers have been more interested in recent times, and several rounds of negotiations have been held with the owner of the house, with a greater likelihood of a deal being made, which is expected to be adjusted downwards, “even at the lowest price in the entire area”。
The construction consultant at the above-mentioned korean district broker shop informed the economic observer that a small area near the hanqiao bridge, with the same floor and house type, had a listing price of $101,000 per square metre in april 2023 and that, by april of this year, part of the housing supply had been revised downwards to around $70,000 per square metre。
According to the consultant, the sale price of second-hand houses is generally around 10 per cent lower than the price on the mark, and discounts are higher for some areas and sources. In april, the unit cost of a set of houses in the district was already below 60,000 yuan/m2。
The head of the above-mentioned intermediary company, the beijing region, told the economic watch that each owner had different realities and different attitudes towards the sale of houses: “any person who is desperate for money must sell it at any lower price; the owner who can sell it, who can sell it, does not sell it as expected.”
He described the current concentration of low prices in both categories of owners。
The first is the replacement group, which goes hand in hand with the purchase and sale of the house, and many people have to sell the house at a lower price, “so it is better to sell the house first, then buy it from the room, not in a hurry, to choose the node”
The second category concerns groups that are in need of immediate liquidation, either homeowners who need money to leave the country because of their own or their children, or those who need to sell their debts because of business failures. “in recent years, as a result of these two reasons, more and more people have been selling their houses themselves, and it is likely that they have been filmed by the debtor's application method.” he said。
The bottom of the building
When wang peng entered the real estate brokerage industry, it was at the beginning of the largest rollover of real estate. This round began in late 2015 and continued until september 2023. During this process, market transactions, although subject to many short-term adjustments, show an overall upward trend。
In april of this year, wang peng, looking at the recent record of the deal, saw, by accident, a transaction in a sub-district of the west side at the end of march, the total value of the deal between the two chambers was $3. 45 million. The first deal he entered was in this neighborhood。
Wang peng went back to his first deal, the size of the house and the floor of the two houses was not very different, with a total value of $3. 6 million at the beginning of 2016. He said that after eight years of middlemaning, after creating a new high house price, he went back to his business. “in that year, he raised 10,000 yuan in two or three months, and he thought that he could make more money and that he would not be able to catch up with the house price.” wang peng said, "house prices are rising faster than expected, and now they are down $20,000 a month."
Will the house price continue to fall? Wang peng has no clue about this。
The head of the above-mentioned intermediary, beijing region, told the economic watch that in early 2024 his company had made a pre-judgment to the market when it was thought that, in the absence of too much profit, housing prices might return to the levels around the new deal of 9-30 in 2016, when the judgement was pessimistic。
The trend in housing prices since april means that this determination remains conservative. The head of the above-mentioned intermediary company, the beijing region, said that low prices were a case in point in the individual sub-regions, but were more common in the market as a whole, with each region experiencing over-anticipated low prices, “the prices of these cases reverted to early 2016”。
In the view of the beijing regional director, the current market situation is complex, with around 20 per cent of the fall in the same ratio in the new housing market and a slower deal; the price of the new plate in the city is relatively strong, but sales are generally less than expected。
The market for second-hand houses is more marked than for new houses. Second-hand house prices generally show large discounts in the suburbs, and the market for second-hand houses in urban areas has increased and declined. This can be seen in the larger drop in old and old neighbourhoods and the smaller drop in new neighbourhoods; the larger drop in previous pockets, where prices had increased considerably, and the smaller drop in previously slow-growing neighbourhoods; and the even small rise in prices in some districts. “housing prices have risen too fast over the past few years and are now returning to a reasonable space.” the head of the above-mentioned intermediary company, the beijing region, said that “there is no clear criteria for what is reasonable and it is unlikely that the house price will return to 2014, hopefully as soon as possible”
In his view, there had been large discount sales in some of the cantons, partly because of oversupply and the seller's weak bargaining power, forced to change houses or cash pressure, and eventually to compromise to the market. Data from the shell search network show that, as at 25 april, the site had 146,000 brands in its used room in beijing, a record high。
On the other hand, the acceptance of prices varies from time to time. The unit cost of second-hand accommodation decreased from $100,000 to $60,000 per square metre, a decrease for purchasers of $100,000 per square metre, but still a fivefold increase for purchasers of $10,000 per square metre。
Wang peng said that the owners of public housing in beijing generally did not buy more than $200,000; the owners of houses in the early years did not buy more than $20,000 per square metre per unit, and now have a listing price of $60,000 per square metre, but the owners who entered the high prices would not eat。
House prices are down, but more people sell. Wang peng said that the sellers had their own difficulties and that, without special circumstances, most owners would not sell their houses at a discount, “at a loss of $1 or 2 million for years to earn back”。
