Many housing enterprises evacuated from Shanghai. Why did they evacuate?

At present, many housing enterprises are withdrawing from Shanghai, including "fleeing" from the "crowded" Hongqiao. Even if there are reasons for the economic impact of the epidemic, there are also reasons for people's deep understanding of "urban diseases" and changes in the entire real estate policy, such as financing and mortgage suppression. But in the final analysis, the most essential reason is that it is unprofitable. If we continue like this, we will be doing business at a loss.

Let's get a deeper understanding of the specific reasons. Here are some points for your reference:

First: affected by the epidemic.

Shops have closed down under the epidemic, which is the most superficial reason. Basically, everyone will think that the city is almost paralyzed because of the epidemic, enterprises have closed down and companies have laid off employees. People have completely lost their desire to buy, and the pressure of repaying loans is too great.

Second: the state's control over the real estate sector.

As early as before the outbreak, the state began to implement this regulation. The purpose of housing is living, not business speculation. Li Ka-shing, who had a long-term vision, shifted the domestic real estate investment early, and Xu Jiayin of Evergrande almost suffered a fatal blow because of the real estate problem.

Third: the purchasing power of the main force has declined.

We can go and have a look. In fact, most of the people who bought houses in Shanghai a few years ago were young strugglers from other places, and now they have basically reached saturation. Most of the new generation of young people are influenced by the new trend and the new purchase restriction policy, and they will choose a comfortable lifestyle and even choose a slow life in the surrounding small cities, with little pressure.

To sum up, there are two reasons why people buy a house now: first, they just need it, get married, settle down and so on; The second situation is the usual hype. The latter obviously encountered a series of reasons and lost its original power, thus forming a cooling cycle. Even in the face of a depressed market, people are willing to invest, and they will not touch the house rashly. Everyone is waiting for a turning point to start. When this opportunity comes again, everything will come back.