Developer: I'll Kill Anyone Who Cuts Prices

Some developers in Beijing have cut prices, raising the question of whether other developers will follow them. As one person put it, the fear is that you cut prices and no one else joins in, but it's better than the stage where everyone is slashing prices in a headlong battle.

Some developers are using tricks to cut prices. One project allows home buyers to choose a "price cut risk" payment. The buyer pays 90% and keeps a 10% deposit. If prices don't fall, they have to turn the money over to the developer 4 months before the contract is signed (in this case the end of June 2015). If prices fall, the customer keeps the money and an insurance company pays the developer the difference. Critics have called the plan a gimmick.

In the case of one developer, sales agents started a 10% down payment promotion only to have it stopped by the boss, who told them he'd kill anyone who cut prices. The sales agents wonder how they can sell property without cutting prices though.

房地产开发商死扛不降价 叫停促销:谁降价就干掉谁
"Said the boss, who would kill anyone price!" Jia Li (pseudonym) on the 21st Century Business Herald said the reporter. The main content of Chia and her colleagues are currently pondering is "how does the price they can sell the house?" Jia Li and her colleagues recently launched a " down 10% "promotion program, it was called the boss stop.

Sang Yu Feng, director of the real estate market development centers observed in the 21st century, although volume of new homes fell sharply, but so far no price in the country of which the developer, the developer may be because last year's sales results were generally good, and this year New Year, frozen market sharply down, the developers will take to significantly reduce the financial pressure is not; then there is the developer of local government bailout sent to the expectations.

Someone cut prices?

There are also individual developers just need to attract market segments, decisive price.

Recently, adjust the upcoming East Asia Xinhua estate market in East Lake station · PREMIER expected price. From the previous 20,900 yuan / square meter fell to 15,900 yuan / square meter, about the original Qizhe. In addition, the company is located in Daxing District of rings international projects previously expected average market price of 26,000 yuan / square meter, now reduced to 24,900 yuan / square meter.

East Asia Xinhua estate marketing director Jia Peng told the 21st Century Business Herald reporter, East Asia, Xinhua chose the price because the company recently took a few places in Shanghai. "In our analysis, can be recognized by the market price of." Jia Peng said, after the announced price cuts, they double the growth in the amount of discharge card.

According to Asian high monitoring, Beijing last week launched two residential projects in general, are less than 2 million low-cost market, which first opened Xi Yue Shan [ News Price apartment Review ] opened down nearly 2,000 yuan higher than early June , compared with March's price has dropped by nearly 20%. First open [ Introduction News ] MAK Royalton new products into the market a price of 16,500 yuan / square meter, essentially flat with last year.

Asian high high Shan, deputy general manager, said the analysis, the first of two real estate projects choose low opening, to a greater extent from their own operating pressure. Since the decline in sales pace and high inventory pressure, the first open cautious pricing, in order to ensure that funds are withdrawn from circulation, maintaining the sustainability of cash flows. High-shan said that in the second half of the market is unknown, the pressured sales and cash flow, there will be more price cuts to join the ranks of housing prices.

Hovering at the edge of the price

East Asia and the first open Xinhua estate first price reduction, leaving other developers challenge is, you do not follow the price?

CAC [ Introduction News ] real estate assistant to the president in an interview with Shen Li male 21st Century Business Herald reporter, said, "price drop of fear is no one to join in, at least, the Beijing real estate market has yet to Diukuiqijia stage."

Shen Li Taihe men also denied because the capital chain tension and rumors of price cuts. Shen Li men said they block the project in Taiwan Lake One plate, one of the selling price of 32,000 / square meter, the current Phase II is priced at 30,000 yuan / square meter. Seemingly lower prices, is actually different types of products. "A sold-storey loft is 4.5 meters, the two-storey loft sales is 4.2 meters."

Shen Li M revealed that due to the adherence to high turnover strategy, the company will go out of part of the product, prices reflect market conditions. However, Shen believes that the national distribution of brand developers, do not choose a large area of ​​lower prices. In particular, the first consideration is generally less price reduction projects in Beijing, but you can choose to cede some of the second and third tier cities in the project "price for volume."

Shen Li M represents the views of the major developers are currently ambivalence. Can indeed take the amount of the price, but also easily lead to a chain reaction, may also lead to dissatisfaction with the old owners.

Some developers cut prices very strange way. Beijing's Pearl seasons Joy [ News Price apartment review ] project, recently launched the so-called "buy price risk" and "no reason to check out" two promotional programs. That is, if buyers choose "price risk" way to buy a house, 90% of the housing fund to buy the remaining 10% as a deposit retained by the customer. To four months before launch time agreed (by the end of June 2015), as prices did not drop, 10% of the total housing fund deposit and then handed over to buyers by the developer, if the price, and the Pearl life insurance on behalf of clients to developers pay the balance without the customer return the bond.

But industry insiders believe that this is more a marketing gimmick. Centaline Dawei analysts believe that this is a digital price game, "buyers prefer to see the actual price changes, this tedious prices, the effect is limited. And the so-called 'price risk' interpretation entirely developers ultimately it is difficult to be implemented. "

Pearl Joy Sales seasons far from ideal. October 2013, monthly sales of 625 units in the project. But this year in June, the project sold only 44 units.

Developers carry the dead do not cut prices?

Although most developers do not adhere to the price, but they are not fared.

As of now, there are 30 housing prices forecast announced half-year results, the results of which there are 16 significant losses or come down. Net profit is expected to decline in the first half of this year, the largest public housing prices to Wing Fung Holdings, Pre-losing the amount of about 18 million yuan to 2200 yuan, and the company still profit 1,345,900 yuan in the first half of last year. Jiakai City, Chong Hing resources companies released the first loss warning, deep property, Yue Hongyuan, Shirong Henderson, Guangyu [ Introduction News ] Group, Riverside Group, issued a pre-cut.

Housing is not only small and medium enterprises, A-share benchmark housing prices have declined a number of financial indicators. Dr. Paul million gold except China Vanke, the other three of the sales amount and sales area are double-drop.

Dawei that since last year, developers generally better sales results, the market downturn is also just six months, most developers still Can Go. So, they are now reluctant to select a large area of ​​lower prices.

CBRE Research executive director Chen Zhongwei consider, in addition to the decline in performance, the developers also face the challenges of economic slowdown and credit tightening aspects. But many developers have gone from floating rates after many rounds, that the government would save the city.

Dawei said that if credit continued to maintain current levels, prices will continue to fall down. However, experience with multiple rounds of real estate regulation, the government will also be able to withstand up to a 20% decline in housing prices. More than 20%, there is no developer is willing to get to it.

Sang Yu Feng believes that if the property can be really improved, can really increase the volume, the most important factor still depends on the developer's pricing strategy. Sang Yu Feng believes that the limited effect of the local government bailout, but the huge consumer demand for housing has not disappeared, developers should abandon the fantasy, adjust sales strategy as soon as possible, the price to the price immediately, because the price is only one step, in order to truly return volume.

Suixingjiushi is the choice of most developers. Such as the recent stock market's Poly Hyde Park [ News Price apartment review ] project, the main products were within 175-305 meters within city level villa homes ,400-460 square meter villa city. Beijing Real Estate Transaction website show that its Residential Building 6 approved sale price of 94,234 yuan / square meter, Building 2, priced at 97,424 yuan proposed residential / square meter. Financial commentator Ye Tan believes it lots and products, Poly Hyde Park "Buchoumai." Expected August opening of the North Star, red oak villa, unveiled in advance, from 10 million yuan / sets, lower than the surrounding similar projects.

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