Suzhou Developer Slashes Prices, Buyers Hesitate

A message went around Suzhou saying a developer slashed prices 9000 yuan/sqm. Buyers balked, leaving some to wonder if this is the turning point for Chinese real estate.

Although Suzhou is a second-tier cities, but such a decline this year in the first-tier cities have not appeared, does this mean that the national housing prices turning point has come?

At least in [my] opinion, it is indeed a small sign that home prices have topped, it's already not the best time to buy a house.

However, the price drop isn't really a 9,000 slash, it's the difference between a fully furnished apartment and an empty one.

We must first understand whether the news is true straight down 9K? Lord for this state to the identity of buyers to call to verify the sales offices.

Sales argument is that this is not the price, because the previous price 26,000 yuan / square is a decoration, May 7 launch of the rough housing, so the price is 17,000 yuan / square.

But decorating in Suzhou should only cost about 3,000 to 4,000 yuan per square meter for an elaborate set up.

"Although there are gaps, but the hardcover blank, to drop 9,000 yuan / square, accounted Rate (26,000 yuan / square) 1/3 in Suzhou renovation costs could not have such a high standard decoration to three to four thousand it has been very powerful. Say it is Shanghai, 9,000 yuan / flat decoration, we have to be placed in the 90,000 to 100,000 yuan homes, can be said to be reasonable. "

One insider thinks they tried aiming for the large apartment market and priced themselves out.

Gifted Amoy city president Xue Jianxiong believes that the disc is in the price, probably because housing prices Early want the big house, but found that the price is set too high, the customer can not accept, so only by reducing the hardware configuration properties for sale on the grounds, the price tone it down.

Some industry insiders think it's normal, but others wonder if there's a debt issue behind the scenes. The bearish also point to a 32 percent drop in sales from March to April.

"Property prices, may be the developer funding chain issues, it may be a problem with the product structure, on the market, in fact, this kind of price adjustment is a normal phenomenon. Moreover, this is just a quote, is not the real price. "

Wang Shinco Nanjing CRIC director's view, similar to the kind of "Ba Jiuqian straight down" situation in Suzhou, fairly isolated phenomenon, because many projects in Suzhou deal fairly popular, such as the high-end original Lion Lake project, May 6 opening day Lanshou 3.5 billion.

But also from the point of view of market conditions, according to "Yangzi Evening News" reported that in April this year in Suzhou city (excluding Wujiang) housing a total turnover of 7886 units, of which a total turnover of 6483 residential housing units, a decline of 32.83 percent m/m, a decline compared with last year's 10.22 percent increase over the same period.

Similarly, the second-hand housing turnover has decreased by 41.16 percent to 10,044 units, of which 9297 units of residential turnover, a decline of 41.83 percent.

It is not only Suzhou:

Wang Division, said, not only in Suzhou, including Nanjing, Wuxi also appeared to reduce the amount of visitors to the situation, "This is mainly because high growth expectations are not very strong, buyers expecting prices will fall later is more serious."

Prices remain elevated in Jiangsu province despite falling volume.

As mentioned above, the Suzhou property market volume and stocks all the way down:

Suzhou, a Monitoring Center statistics show that the first week of May, Suzhou housing turnover fell below one thousand units, 864 units, a decline of 805 units, a decline of 48.23 percent w/w.

At the same time, CRIC data show that, Suzhou property market can sell stocks fell by 7.95 million square meters to 3.61 million square meters this year in April, the digestion period is reduced to 3.2 months.

But now, many important cities in Jiangsu house prices are still going up.

April's "China Real Estate Index System hundred cities price index" shows that Jiangsu into the statistics of 17 cities, housing prices there are 13, including Kunshan prices rose 6.06 percent, ranking first in the province of gains. Suzhou and Nanjing, two hot cities, prices rose respectively 5.49% and 4.73%.

Relevant agency statistics also showed that 4 Suzhou residential average transaction price of 17,553 yuan / square meter, up 3.7%, an increase of 54.12%.

The market is still rising, but there are substantial individual cases appear slashed prices, which is already in the release signal, although small signal, but it is still in that house prices has begun to show the top, back again ascribed price of space is not Great, now probably is not the best time to buy a house.

But do not worry too much, the Suzhou market, it is in a normal big cycle. Wang Shinco, believes that at this time fluctuations in the property market turnover of Suzhou, is a real estate operation cycle short cycle, reasonable phenomenon.

"The real change in the market structure, triggered by volume changes yet to come, because if this happens, it is the early signs can be seen from the land market."

At present, the land market is still higher temperature Suzhou. May 23 and 24 on two days to sell 20 plots of land (Suzhou City Land Resources Bureau data), and attracted over 30 competing housing prices, land prices are also starting at 20,000 / square around, the developers general forecast is good.

For the bulls, the volume drop could be short-term and weekly data is notoriously volatile. Even if the slowdown continues in Suzhou, it may also be a stabilization in the market rather than a cyclical downturn. For the bears, the fact that buyers didn't swarm a more than one-third cut in prices is a potential sign of a psychological shift. Price follows volume as well; if sales don't recover, more price cuts are likely.

iFeng: 二线城市一楼盘竟降9000元/平 买房人犹豫了

The story always ends
And if you read between the lines
You'll know that I'm just trying to understand
The feeling that you left

I never thought I could feel this way
And I've got to say that I just don't get it
I don't know where we went wrong
But the feeling's gone
And I just can't get it back