Houses around Beijing met with black swans, and the price reduction was close to 70%. Why are there so many price reductions?

Houses around Beijing met with black swans, and the price was reduced by nearly 70%. There are many main reasons for the price drop:

1. The geographical location is relatively remote and the future development space is relatively small;

2. The original hype was too crazy, which led to a huge bubble;

3. The common people are relatively rational, buying up and not buying down;

4. National policy regulation: the house is for living, not for speculation.

Houses have been given too much meaning in China, and there is no sense of security without houses; There is no future without a house; No house, no wife.

The house has been divorced from the most basic living category, and the house has become a symbol of our identity; The house has become a choice; The house is endowed with financial attributes.

All this shows that houses are becoming more and more important in the hearts of China people. But the houses around Beijing met with black swans, and the price reduction was close to 70%, which taught many people a lesson.

The house has passed the era of earning only without compensation, and real estate speculation is already risky, so real estate speculation needs to be cautious.

Houses around Beijing suffered from black swans, and the price reduction was close to 70%. In fact, propaganda gave us these signals:

First, don't invest in remote places with little room for development.

The most important thing to invest in a house is to look at the location. If the location is remote and there is no room for development, you must not invest.

Houses around Beijing met black swans. Obviously, it has a geographical problem and has left Beijing, and it is very remote. The development space is already very limited. It is this narrow development space that hinders the rise of real estate prices.

Second, the house is also a commodity with a reasonable valuation.

Although the house has been given too many missions by us, we must know that the house is a commodity after all, and the commodity has a valuation. Exceeding the valuation is the performance of the bubble.

The main reason why houses around Beijing encounter black swans is that the valuation is too high. At the beginning, the price was 34,000 square meters, and the local living standard was only about 4,000. Obviously, there is a bubble, which is the most direct reason for the emergence of black swan.

Third, ordinary people are more rational and unwilling to take over at the bottom.

People in China have a characteristic, and they like to chase up and kill down, which is actually the pursuit of advantages and avoidance of disadvantages in human nature.

No one knows where the lowest point is. After all, buying a house is a big deal. If it continues to decline, the money will be directly lost. Ordinary people are unwilling to take risks and participate, so there will be no buyers in the houses here, and the house prices can only be lower and lower, entering an infinite loop.

Fourth, the state has repeatedly stressed that houses are for living, not for speculation.

The most important thing for investment is to look at the policy. When a policy has obviously caused negative effects on the industry, then the industry is basically unsupported and may become more and more difficult to do in the future.

The national policy has been publicized and repeatedly emphasized that houses are used for living, not for speculation, which is a signal that the state regulates houses. Obviously, speculation will stay away from real estate, which is the minimum financial common sense.

5. The houses around Beijing met with black swans, and the price reduction rate was close to 70%. What does this mean?

1. The era of real estate only earning no compensation has passed, and real estate speculation needs to be more cautious.

2. Just need to buy a house without any problems, and try to avoid investing in real estate speculation.

3. The state's regulation of real estate is more and more strict, and we can gradually reduce the allocation of real estate.