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More than 70% urban property market turnover shrinking dramatically which affect 50 industry such as steel pipe

    Last week, in the 35 cities of Chinese index academy’s monitoring, 26 city property market turnover drop year-on-year, more than seventy percent city property market turnover drop year-on-year, seven cities fell more than 50%. Among which Changsha has the largest drop of 76.43% year-on-year. In the key city, shenzhen has the biggest drop to 61.22%. According to the Beijing real estate transaction management nets’ data statistics, the second-hand house sign for 8750 sets of the total net in Beijing of October, compared with the same period last year, volume fell nearly fifty percent.
    October 28, the Beijing municipal development and reform commission decreased the trade intermediary fee of secondhand house charge, which is the first time in 14 years. From August 31 st, the upper limit of secondhand house agency charge adjusted to 2% from 2.5% now. At the same time, the transfer, agency loans, dealing with housing check-in procedures fee will have the upper limit of 100 RMB. For the new politics, part of the real estate industry insiders and several intermediary company agreed that, despite the rapid rise of house prices lead second-hand housing agency charge to 50 thousands even more than ten. But this reduce of intermediary fee standard is still not able to change the situation that Beijing property market turnover is dwindling.
    Han yu real estate market research department’s latest data shows, on October the Shanghai housing trunover of a 24% decline from buying and selling, leasing turnover also fell about twenty percent. Han yu real estate market research department manager FuWei said, October the trunover of secondhand house is likely to be below 10000 set, which is the worst since 2008.
    Not only is secondhand house a sharp fall in the volume, new house is also in the deal gloomy ending. Part of the large house enterprises developers chose the strong sales promotion because can not afford. Generally speaking, the inflection point is a process, first is sales atrophy, and then prices declined obviously, and finally investment change. Now, volume has been a massive atrophy, and property prices and sales promotion also spread from middle to large housing enterprises.
    Analysts XueJianXiong think, these large developers take the lead in reduction of, not to win “emergency money”, but they don’t have luck for policy and market already, and tend to seize the opportunity. Especially Zhonghai real estate, after Hong Kong financial crisis in the property market down cycle, the more know clearly the importance of price. 
    Bank of China’s chief economist CaoYuanZheng said China real estate is being limited to buy and loan on tightening. Probably in the next year of Spring Festival will have a fell inflection point, then the steel pipe, building materials, and other 50 upstream and downstream industry have impacts.
    Experts HuJingHui said, now the property market has few effective demand. Some people are limited lending, some people are limited buying. The people who really have qualified to buy and can obtain some loans from the bank are few, and a part of these people still have on the fence. With the winter coming quietly, the market forecast, in the fourth quarter of 2011, the volume of property market will continue to shrink, the price stop rising, reduction projects continue to significantly increased, the real house prices inflection point is gradually asymptotic.
    As real estate leading enterprises, China Wanke Co. Ld executive vice President XiaoLi said in investors conference call, “we can see a sales shrinking trend, particularly in big cities, prices began to fall gradually. So we thought, even those that have the ability to purchase  houses also choose wait, because they expect prices will be further down.”

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