In contrast to the advertising of buildings in previous years, the city of peach in hubei province, one of china's cities on the 3rd and 4th lines, during the spring season, there was a marked decrease in the number of outdoors advertising of real estate, which corresponded to the increasing number of buildings being built and vacant。
In-house workers in hubei told journalists that the city of peach in hubei province, where the average house price was only about $3,000/m2, had lost between 20 and 30 per cent for more than 100 property developers, and that more than 10 per cent of developers had gone bankrupt. The duty bearer of a local developer stated that, despite numerous communications from the central authorities concerning the severity of the huge stock in the building market and suggesting that the developer should reduce the price, the reality was that the price of 3,000 yuan/m2 of the lower plate was close to the cost, which would be sold at a loss, “the bank is now eating interest every day, and now there is little room for profit”。
The market price of housing continues to hover
Home cities on the 3rd and 4th lines are cheap and unsuspecting, and cities on the 1st and 2nd lines are expensive and “run-fire”。
According to the latest public data, in the first month of 2016, there were only 839 new houses in the city, which had not peaked as expected, but had been declining month by month, at a time when there had been a wave of returns。
Corresponding to poor sales, the prices of houses in the city of spades have also remained low. A project staff member told reporters that the average local selling price during the spring season was around $3,000/m, which was almost the same as last year. In particular, the old urban complex is not well-developed, and the increase is mainly due to the new urban complex。
A couple who had already purchased a house in the new city indicated that it was more important to look at the environment in the community, such as the presence of a garden, and whether specific support facilities, such as parking spaces, were adequate than the practicality of the fathers。
Another, mr. Zhu, stated that he had sold his home as early as 2013, and that, in his view, in the search for better resources, such as education, medical care, transport, etc., a few powerful people were buying houses in the provinces, and that it was possible for this group to sell their home in the future。
However, according to the most recent data, there has been no reversal in the number of new homes purchased in the city, which indicates a shift in the target of employment for those working in the field。
Some local residents who have already purchased houses in first and second-line cities say that they are now more rational than they were before, that in third and fourth-line cities, the purchase of houses is just needed, not an investment channel, and that, together with the fact that most young people now work in first, second-line or advanced coastal cities, the desire to buy houses in home-line cities is not so strong。
Nearly 30% of the developers' losses
The day is not easy for developers when housing prices continue to hover at a low level and the market turnover is not reversed。
A case in point is the reduction in external advertising by a number of developers, the beginning of a contraction of the financial chain to prepare for winter, and the personal appearance of even developers' owners, who have put on their social tools the promotion of “buy a house and reward”。
According to one of the leading local real estate developers, life is not easy for third- and fourth-line urban developers, and there are few instances where property owners, as they know, have jumped off the building at a loss of money, and the housing stock has suffered from a shortage of financial chains。
“this is due mainly to the current supply of and demand for commercial houses”, according to the above-mentioned developers, there are currently more than 100 large and small developers in the whole of the city of the peach, but many of the buildings are being sold at a loss, “from the whole of the city of the peach, at least 10 per cent of the real estate developers are bankrupt, while the deficit is between 20 and 30 per cent”。
According to its analysis, there are two main reasons for this situation: a significant oversupply of land in the first place, combined with the emergence of small property units, has led to a significant increase in the overall real estate market over demand; and, according to the average price around $3,000 per square metre in the lower floor of the flag, almost $1,600 of this amount has been handed over to the government, although the central government has continued to issue letters calling for lower prices for developers, as is currently the case with “developers already standing above high costs and with very limited space for lower prices”。
Other local developers have indicated that, in their personal judgement, real estate development is currently virtually impossible in cities on three or four fronts. According to real estate practitioners, large-scale real estate operators are currently almost suspending large-scale development in third- and fourth-line cities, and one side attests to the recession in the local market, “not excluding the fact that some unsaturated third- and fourth-line urban housing prices are likely to rise, but that much of it will continue to fall”。
