New Deal for Dongguan Property Market: Developers withdrew discounts overnight, owners lowered quotations to facilitate transactions

“I see hope of buying back Shenzhen.” After the launch of “Dongguan Qitiao” on May 14, Miao Miao was full of energy and was one step closer to her small goal of selling Dongguan and settling in Shenzhen.

In the first half of 2018, the real estate market was booming. The third phase of China Resources City Run Mansion, the "originator of Internet celebrity listings", opened for sale, and the streets were empty. Also in this year, economist Fan Gang proposed the famous "six wallets" theory.

Shenzhen was out of reach, so Miao Miao took the trouble to buy a house in Dalingshan Town, next door to Songshan Lake in Dongguan, where she wanted to bring Huawei, and spent all her family efforts to buy a house. At the end of 2019, the building was delivered and Miao Miao took possession of the house. Taking advantage of the popularity of Songshan Lake, Dalingshan outperformed the market, and Miao Miao's house increased by more than one million.

In the past year, the property market has been cold. Even though the house is still under sales restriction, Miao Miao is still full of anxiety. New houses are constantly coming on the market. Who would buy a second-hand house?

With the release of "Wan Qitiao", Miao Miao saw hope.

According to the new policy, the sales restriction period for residential properties in Dongguan has been adjusted from 3 years to 2 years. This means that Miao Miao's house will be "limited" by the end of this year. Families with two children can buy one more house, which means there are a lot more room tickets on the market.

With the implementation of policies, the reduction of mortgage interest rates, and the active real estate market, Miao Miao's house may become easier to sell.

The number of visits to new homes hit a new high this year

Developers in Dongguan saw hope faster than Miao Miao.

On May 14, China Merchants Poly Yicheng Grand View, located in Xiegang, Dongguan, issued an "Emergency Notice" stating that due to the impact of the policy, the sales department has seen a surge in house viewing customers, and the sales department is requested to inform customers to use an appointment system to view houses.

The "Emergency Notice" points out that in order to ensure that interested customers who have viewed the house in the early stage can be informed of the latest developments, the on-site sales discount will be retained until 24:00 tomorrow (May 15), starting from May 16, 2022 , shops increased by 4 points, and houses increased by 3 points.

A reporter from Times Weekly called the sales department of China Merchants Poly Yicheng Grand View and learned that it was true that the discount was cancelled.

“Our (real estate consultant’s) preferential rights have been withdrawn, but you can apply to the leader for a try.” said the sales staff of China Merchants Poly Yicheng Daguan.

Aoyuan Emerald Bay, located in Wanjiang, Dongguan, also increased its price on the day of the "Wanqitiao" launch.

The "Notice on Price Increase of Products on Sale at Dongguan Aoyuan Emerald Bay Project" obtained by Times Weekly reporter shows that "based on recent market policy adjustments and the specific situation of the resumption of work and production of the project, all products on sale Starting from May 16, the price will be increased by 2%, and all special price policies will be cancelled. ”

The developer’s confidence in raising prices comes from the surge in visits.

According to the monitoring of Hefu Research Institute, during the first weekend after the release of "Wan Qitiao", the rainy weather failed to affect the increase in the number of visits to major real estate projects. Last Sunday (May 15) hit a record The highest number of visitors in a single day during the year.

However, the number of visits and transaction volume cannot be equated.

A real estate consultant from China Merchants Poly Yicheng Daguan told a reporter from Times Weekly that the project launched nationwide marketing in January this year, recommending residential properties or shops for a commission of 10,000 yuan per unit.

Aoyuan Emerald Bay obtained a pre-sale license in October 2021, and 356 units were approved to enter the market. The Dongguan Municipal Housing and Urban-Rural Development Bureau’s official mini program “Guan e Subscription” shows that as of May 16, there are 209 units available for sale in this property. Half a year after its launch, the project has sold approximately 41% of its sales.

Jiang Li, a marketer from a private enterprise in Humen, Dongguan, told Times Weekly reporters that at present, the "Wanqitiao" has not had a significant impact on the sale of new projects, and customers still have insufficient market confidence and have a strong wait-and-see mood.

Low-price housing supply supplementary increase

"Wanqitiao" stimulates improvement demand for the new housing market, also significantly reduces the cost of second-hand transactions, and adjusts the value-added tax exemption period from 5 years for 2 years.

On the day the policy was implemented, second-hand owners in Dongguan adjusted their prices one after another. A Times Weekly reporter learned that within 24 hours of the new policy being implemented, 307 property owners adjusted their quotations.

According to Zhuge Housing Monitoring, in the 24 hours before 10:00 on May 16, there were 103 houses with price increases on the Dongguan second-hand market. The house with the largest increase was Tangxia Aoyuan Guanlan. A suite in Yufeng is approximately 124 square meters with 4 bedrooms.

The change records provided by Zhuge Zhaofang show that the house was listed for sale on Leyoujia on April 14 this year, with a quoted price of 3.85 million yuan. On April 26, the price was lowered to 3.488 million yuan, 5 On March 15, the quotation was raised to 4.547 million yuan, an increase of 1.095 million yuan. The owner claimed, "It was completely renovated and I only lived there for 3 months. Because my children were studying in Shenzhen, I was forced to sell the house and move back to Shenzhen."

Times Weekly reporter observed that most of the percentage points of price increases for houses are in individual The number of digits is intended to test market enthusiasm.

For example, a second-hand house in Changping Jiahong Diwang Building was put up for sale in April 2021, with a quoted price of 960,000 yuan. After eight rounds of price adjustments, the latest offer for this property on May 16 was 1 million yuan, an increase of 40,000 yuan.

Source: Zhuge House Searching Website

Guo Fengmin, vice president of marketing at Leyoujia, told Times Weekly reporters that the price increases are mainly for houses that are easier to sell after the "Wan Qitiao", such as A house with “many certificates in one”.

“The price of this part of real estate has been lower than the market price in the past. Objectively speaking, it is a compensatory increase.” Guo Fengmin emphasized.

Some owners raised their quotations to test the market, while others lowered their prices to take the opportunity to ship goods.

Data from Zhuge House Search shows that in the same 24 hours, there were 204 houses with reduced prices, almost twice as many houses with increased prices. Moreover, the reduction often starts at 10%, and sometimes reaches 20% or even higher.

Take Humen Wanda Plaza housing as an example. A three-bedroom apartment of about 93 square meters was lowered to 3.5 million yuan on May 16. The initial listing price about a year ago was 4.5 million yuan, a drop of more than 22%.

Vanke Cloud City, also in Humen, has a three-bedroom apartment of about 91 square meters. The latest offer is 3.78 million yuan. The initial offer in April was 4.28 million yuan, and the price was reduced by 500,000 yuan. According to the Lianjia platform, there are currently 315 units for sale in Humen Vanke Cloud City, including parking spaces, apartments, residences, etc., and 5 units have been sold in the past three months.

Sellers are willing to sell goods at a profit, but it remains to be seen whether the market will pay.

Guo Fengmin said that although "Wan Qitiao" has a positive role in promoting market confidence, the market is currently in a wait-and-see mood and the mentality of buyers and sellers is relatively rational.

Song Yang, a “big factory worker” in Shenzhen, originally planned to buy a house in Dongguan. In order to qualify for buying a house, he will start paying personal tax in Dongguan in 2020. Now, even though he has a quota and more than one million in cash, he has raised his standards for house selection and will not impulsively enter the market.

Guo Fengmin believes that the general policy of "housing is for living, not for speculation" has not changed, and the frequent policies are to help the real estate industry develop steadily and meet reasonable housing purchase needs. At the same time, the promulgation of the "Wanqi Articles" will help meet the reasonable needs of owners to sell real estate, so that real estate can be in a reasonable circulation state. "Wanqitiao" is expected to promote a certain degree of recovery in the property market.

Li Xingwang, a senior analyst at a certain research institute, believes that the "Dongguan Seven Articles" propose to meet reasonable credit needs for home purchases. Under the background of "city-specific policies", Dongguan's down payment ratio and loan interest rate are expected to be adjusted in the future, and the transaction volume in the future may be Expect.

(At the request of the interviewees, Miao Miao, Jiang Li, Meng Zhenlang, and Song Yang are all pseudonyms)