2nd Tier Developer Sales Offices Deserted

The initial post-Spring Festival reports from the housing market indicate lower buyer interest, but prices remain stable for now. Since price follows volume, a downturn in home prices is still ahead.

iFeng: 二线城市春节楼盘不“打烊” 售楼处门可罗雀

“We arranged the duty during the Spring Festival, which is normal business, but basically two or three groups of customers will see the house one day.” The salesperson of a real estate in Beijing’s South Third Ring Road told China Securities Journal, during the Spring Festival and after the holiday, There are no promotions for the property.

In Xi'an City, Shaanxi Province, Nanjing City, Jiangsu Province, and Fuyang City, Hubei Province, China Securities Journal also found that the property that was known as “the Spring Festival is not fighting” did not appear to be selling well during the Spring Festival, and the sales office was deserted, home prices stable.

...The flatness of the property market during the Spring Festival may be a microcosm of the whole year. Yan Yuejin, research director of the think tank center of Shanghai Yiju Real Estate Research Institute, said: “The current market is in the expectation of cooling. From the real estate sales office, blind sales promotion may not bring the transaction volume up, so the rhythm will also Slightly slower."

“Policy determines short-term demand, and real estate sales are mainly affected by mortgage loan and provident fund loan conditions.” Zhang Wenlang, a macro analyst at Everbright Securities, said that the central bank’s depositor survey showed that the proportion of home buyers’ expected price increases began in June 2018. It began to decline, reflecting that the wait-and-see mood in the market began to increase. Mortgage and provident fund loans in 2019 may only be marginalized.

Shen Yi, a researcher at the Shanghai Yiju Real Estate Research Institute, said that as the effects of regulation continue to appear, it is expected that the overall property market turnover will fall back and the market will return to rationality.