Hebei Tangshan Has 100 Months of Housing Supply; Construction Stopping

The number of 100 months of supply comes from the still oftmentioned Mao Daqing comments. According to an unnamed bureaucrat contacted in the story, housing supply is really only 24 to 36 months. The reporter finds one district where approximately 1 million sqm of construction has halted. Construction began in 2011 and the area was slated to have 5000 homes. Elsewhere, in the Lubei district of Tangshan, construction has stopped on a project that already made advance sales as far back as 2006. Rumor is that 30% of projects are halted due to funding difficulties, but this was disputed by an industry insider who said that while some financing problems exist for individual firms, most companies have halted construction due to land disputes or other internal issues.

Land supply in Tangshan is enormous. Although it has only 1/3 the population of Beijing, the land supply (i.e. land sales)has been almost the same in the past 5 years. According to the article, investment demand has already dried up.

Tangshan contributes a lot of GDP to Hebei province; it is among the top 20 cities in China by GDP. This is partially inflated by the Caofeidian port and industrial area, which falls under the jurisdiction of Tangshan. That being the case, much of the investment flowing into Caofeidian has no doubt contributed to over investment in real estate development projects.


河北唐山楼市存销比高达100个月 近三成项目停工

According to network transmission media, " Mao Daqing speech "statistical data Tangshan sales ratio results were shocking, the whole city together to calculate up to 100 months.

"There will refrain project in Tangshan facing capital chain tension, the duration of a slowdown or even downtime.", A local real estate on the " Daily Economic News "reporter said. In lay behind these properties, it is after this third-tier cities highlighted by large supply indigestion sequelae.

Multiple project funding pressure

A construction area of ​​construction workers Li Lifeng (a pseudonym) where up to one million square meters of residential site has been suspended, the project had already started as early as in 2011, but according to Li Lifeng said that nearly half of the site in stoppage time. According to information on the site shows that the number of households in the district plan over 5000.

The only real estate this is not a work stoppage in Tangshan reporter encountered.

Lubei near Tangshan City Sports Center, the "Daily Economic News" reporter found another stoppage of the project. It is a reflection of the surrounding residents, "start time or the ground in front of that building, now almost live in front of the floor, and this building is still the same. 2006 has already begun to sell, but not yet completed." According to previous reported on the network, the project's launch time is scheduled in October 2013, after a lapse of six months, the "Daily Economic News" reporter from the construction site but did not see the signs that have been submitted.

Reporter visited found, Tangshan lot of real estate there, "Five Card" will be on sale incomplete phenomenon, a real estate development in Tangshan on the "Daily Economic News" reporter revealed that such real estate in Tangshan reached 90% and refrain project in Tangshan have faced capital chain tension, time slowed or even halted. "Developers get pre-sale permit before undertaking cheaper, buyers do not know the importance of the pre-sale permit, which naturally potential problems."

For the above statement, Reporters telephone contact with the building housing the Bureau of Tangshan City stakeholders, it said, before the presence of "Five Card" incomplete will be sold, and left behind some problems. The government has stepped up the level of pre-sale permit issued regulatory approval, the number of real estate and quality are made to control.

But for nearly thirty percent of project funding pressure and suspension, the person said this percentage is not accurate, "Some projects may be due to some problems within the company, or land disputes, in abeyance. Really because of funding problems exist, although stoppages But very few of the phenomenon. "

Ward rate acclimatized

From Beijing, the two-hour drive will be able to arrive in Tangshan, Hebei Province, this is the largest contribution to GDP of the city has become the battleground of many brand enterprises. Wanda [ Introduction News ], Vanke [ Introduction News ], CR, Greentown [ Introduction News ] ...... with the participation of these large companies, real estate development has been pressed Tangshan "fast forward button", scaffolding, cranes, construction The site can be seen everywhere in the city landscape.

"Daily Economic News" reporter visited found that now not only are some of the local small developers had a hard time, set off Tangshan ward rate also might not much scenery.

"Tangshan local people for the price sensitivity is much higher than the brand, so do not recognize what the big developers, who bought who's price is right." Above the real estate industry sources told the "Daily Economic News" reporter, in Tangshan people's eyes, from Beijing to the developers sell "Intuit expensive."

Two days after the reporter visited Tangshan nearly 10 items for sale in the sales office, sales office is the most intuitive feeling deserted. Whether the project or just need high-end projects, difficult to encounter many showings.

"Maybe today or buy tomorrow, who will now buy." Above the real estate industry, told reporters that the price of a house in 2013 in Tangshan, the average price fell by nearly 2,000 yuan.

Parabola continues dropping prices, the data shows, Tangshan City in March 2014 the average transaction price of new residential 6,093 yuan / square meter, down 7.77%, down 0.93%. As early as in 2011, the average price on the highest peak in Tangshan City, breaking the 8,000 yuan / square meter.

The person in charge of a local real estate websites admitted to reporters, "Now more and more real estate began to cooperate with our electricity supplier." But he said that the current status of the overall turnover of Tangshan City real estate is not ideal, its website collaboration of real estate, some real estate monthly turnover of only single digits, better able to deal dozen.

Serious excess supply of new homes

Whether it is hard to survive small developers, or brand room rate cut prices to survive, the highlight is under massive supply, the market appears "indigestion."

"Daily Economic News" reporter query public information learned since 2009, Tangshan City, the cumulative number of transfer of land parcels up 3714, the cumulative turnover of 194 million square meters building area, with an average floor price of 553.91 yuan / square meter . Land supply substantial growth in 2011, launched a total of 1,017 plots, much higher than the previous two years 123 and 553. Followed in 2012 and 2013, respectively, to 996 and pushing 1025. Residential land were 256 and 310.

Contrast Shijiazhuang, Tianjin, Qingdao and other places, you can see the supply of land in Tangshan City is very alarming. Even Beijing, 2009 to 2013 the total turnover of the land area of 120 million square meters building. The population of only Beijing Tangshan 1/3 of the land supply over the past five years, and Beijing is almost flat.

This had the purchasing power of people of Tangshan concerns. "If prices continue to rise, then we will have the impulse to buy, but now the demand for investment buyers no longer exists." These real estate people said.

"Tangshan high inventory in property control most intense in 2012 has demonstrated high inventory to cycle, even higher than the portion of third-tier cities. Tangshan has not issued purchase orders , but the market is still bad effect to this it shows the entire population of the import market and effective demand is not high. "Shanghai E-House Real Estate Institute researcher Yan leap on the" Daily Economic News "reporter, said the concept of the last lap in Beijing, Tianjin, Tangshan want bigger housing prices article, the local government confidence is relatively large, resulting in relatively large-scale land. But the market did not follow up on purchasing power, it is easy inventory backlog of housing prices in the market are expected to fall.

Subsequently, the "Daily Economic News" reporter contacted the building housing the Bureau of Tangshan City, a related person, the more prominent issues of supply and demand market reporter mentioned, the source said the actual inventory is not as legendary as serious. "Impossible up to ten years, which is two or three years."