Update: Vanke Says False Crying Children Get Milk: Vanke Refunding Homebuyers 1 Million Yuan Following Price Drop

Update: Vanke says the story is false.

Wallst.cn: 戏精万科

In 2014, Vanke threw out the "silver theory" and lowered the price again.

In 2018, Vanke will not only take the lead in price cuts, but also enable "price protection."

Vanke "first down to respect", the refund rumors are not true

The article sees trouble for the housing market, including for Vanke.

Can Vanke really survive?

In August, Vanke's sales amount and sales area both reached the lowest this year except February; the rate of removal in July was 51%, and the rate of removal in August was only 47%, significantly lower than the rate of 55% to 65% in the first half of the year. . Behind it, Vanke is facing greater regulatory pressures in more than 600 projects in first- and second-tier cities, and the diversification of long-term rental apartments, logistics real estate, commercial real estate, etc., is also facing a great test.

As the industry booms down, Vanke’s anxiety that “the big ship is difficult to turn around” is indeed intensifying.

...High-sounding Vanke, who can't live, can live his own life, so that other housing companies can't live.

The turning point is currently, is this really different?

Yu Liang said that most of us have not experienced the policy adjustments of 2008, and many people have not responded to the most basic market signals. In 2012, Vanke judged that the industry entered a turning point. It was just a prediction. I don't know when there will be a real turning point. Today, the turning point is really coming.

It’s not that its cold now, it’s that it was a bit too hot in the past.

The last line in potentially good news for the economy, but its not good news for highly leveraged developers and speculators. For them, the spread between credit costs and price appreciation is all that matters.

Finally, although this story was false, it's rapid spread in Chinese social media shows the current state of social mood and the real estate sector.

Original post below:

Vanke is refunding 1 million yuan to homebuyers who paid 4 to 5 million yuan for homes now priced at 3 million yuan. Critics, including the oft-quoted Zhang Dawei of Centaline, say this sets a bad precedent because they're under no obligation. It is akin to "crying children get milk." Additionally, back in September 2008 amid a far steeper price decline and a global economy whose wheels were already coming off, Vanke refused compensation.

Meanwhile, Vanke is turning down all requests, saying compensation is not an item in the contract. But it has also said it does understand why customers are disappointed.

Sina: 别墅买贵了能退100万？万科回应：正在了解情况

It is reported that the developer has negotiated with the old owner and will compensate for the difference in the purchase price through refunds.

Recently, the first price cuts of a townhouse (villa) developed by Vanke in Xiamen have caused widespread concern. The total price of villas with a total price of 4 to 5 million yuan has fallen to less than 3 million yuan. It is reported that the developer has negotiated with the old owner and will compensate for the difference in the purchase price through refunds.

In this regard, a public relations officer of Vanke said to Zhongxin Jingwei, they are also understanding the situation.

If you buy expensive, you can give it back?

Prices have plummeted in the area of the development in question.

With the deepening of the regulation of the property market and the changes in the market environment, the Xiamen property market, which has been burning like oil, has gradually cooled down. Many real estate projects have made great efforts to reduce prices. Located in Xiang'an District of Xiamen, the first-ever Vanke Egret County has not had much advantage. In September, it also introduced a large preferential measure. The price was reduced from 4.5 million to 5 million yuan per townhouse to about 2.78 million yuan, the price in the area is about 2.98 million yuan per townhouse.

Zhongxin Jingwei learned that the previously sold villas were given 5,000 yuan/square meter for fine decoration and two underground parking spaces with a unit price of 160,000 yuan, while the special room was delivered with blanks, no parking spaces and indoor elevators. Even if the previously purchased villas plan to go to the decoration and parking space, the minimum total price is about 3.7 million yuan / set, and the price of the new special room is still cheaper by nearly 1 million yuan.

Many real estate agents said that after the price cut, the enthusiasm of buyers was high, and the special room was sold out on the opening day.

The old homebuyers are not happy:

The drop of nearly 1 million yuan in price has naturally caused dissatisfaction among the old owners. There is a WeChat public article saying that Egret County is preparing to refund the owner of the pre-purchased owner and is negotiating with the bank to change the mortgage contract. The owner who buys the expensive only needs to sign a supplementary agreement with the developer to ban the fine decoration and the free parking space agreed upon before, and the corresponding price reduction is about 1 million yuan, directly offsetting the mortgage part.

Zhongxin Jingwei asked several real estate agents. A Li surnamed intermediary in Chain Real Estate said that he had not heard of this news yet. He and his colleagues who had previously dealt with the customer did not give feedback to them. The intermediaries who found the new housing department of the two shells also said that they also saw the news on the Internet on the morning of the 10th and had not been notified from the real estate.

A consultant from Vanke Egret County said that it was indeed negotiating with the old owners, but the specific plan has not yet been fixed, and he does not understand the details.

At noon on the 10th, a public relations officer of Vanke responded to Zhongxin Jingwei: "We are also understanding the situation, and if there is a specific explanation, it will be released as soon as possible."

Has Vanke set a new standard for the industry? The positives are good PR (no smashed up sales offices) and possibly lower costs IF buyers have the right to return the home. Then developers would have to refund their money and sell it at the lower price. In those cases, compensating buyers may be the cheaper option.The downside is that many homebuyers do not have the right to return their home. For those homeowners, there's an incentive to smash up sales offices if it means receiving extra-contractual compensation.

Will other housing companies follow up?

Since September, the property market has suddenly turned cold. Some housing companies have begun to reduce sales prices through various preferential promotions. The price reduction of many real estates is relatively large. These measures have caused some old owners to feel that their own interests have been damaged. Before and after the National Day holiday, there have been many activists' actions to protect their rights.

Recently, it was reported that a sales office in Shangrao Country Garden in Jiangxi was smashed because the developer reduced the price from 10,000 yuan/square meter to 7,000 yuan/square meter, causing the old owners to defend their rights. At the same time, Country Garden was also exposed to lower prices in other places. Country Garden eventually had to clarify, saying that only a few cities have discounted individual projects.

Zhang Dawei, chief analyst of Zhongyuan Real Estate, believes that in the current weak market situation, some cities' real estate projects will not carry out price reduction promotion, sales performance will certainly not improve, but if the price is cut, once the owner checks out, things will become more complicated.

In fact, apart from Vanke, some housing companies have responded to this thorny problem in a similar way. In the face of the price reduction rights of the owners of Hangzhou Binjiang New Hope New City Future Coast Phase I, Binjiang Group agreed to check out and not charge any liquidated damages. In September, Hefei Taihe Yard reduced the price of some units from about 20,000 yuan / square meter to about 15,000 yuan / square meter, causing dissatisfaction with the early owners. Later, Taihe said to the media that the old owners can check out and then press the current offer. Price purchase.

For the price reduction of house prices, Zhang Dawei believes that although the developer can understand the behavior of accepting the negotiation from the perspective of maintaining the brand image, it may play a bad demonstration role for the market.

"The phenomenon of price reduction and rights protection is obviously not in line with the spirit of the contract. The troublemakers generally have the mentality of 'the crying children get milk', and from the historical point of view, most of the housing troublemakers get benefits, but those who don't cause trouble take losses."