Enshi, Hubei Says Will "Correct" Developer Price Cuts

While some in-demand cities are heating up, others are worried about 30 percent price cuts.

iFeng: 湖北恩施房协发文“纠正”房价猛降 三四线楼市开始扛不住了?
Sogou: Hubei Enshi Housing Society issued a document to "correct" the sharp drop in housing prices. The 3rd and 4th line housing market began to fail?
After two years of skyrocketing, the "wolf" of the price reduction in the third and fourth-tier property market has finally come.

A few days ago, there was a circular on the Internet issued by Enshi Real Estate Association of Enshi City, Enshi Prefecture, Hubei Province, on the early warning of stabilizing Enshi real estate market prices. The red tape sent to Enshi real estate enterprises, copied to Enshi Municipal People's Government, Housing and Construction Bureau, Natural Resources and Planning Bureau, points out that some real estate projects have taken drastic price reduction measures to promote sales, including 10 kinds of price reduction actions such as the opening price is lower than the record price of 800 yuan -1200 yuan/square meter, and the remaining 4,000 yuan-4,500 yuan/square meter sales, which have brought adverse effects on Enshi real estate market. Enshi City Housing Society requires companies that are opening for sale to correct their bad practices and will assist the competent authorities to systematically restrict the lower limit of the filing price.

Yan yuejin, director of research at the think tank center of yi ju research institute, told the Huaxia times that Enshi's document further embodies the concept of "stabilizing house prices", i.e. neither too fast rising nor too fast falling house prices are allowed. The cooling trend of the third and fourth-tier cities' real estate market is a market behavior, and is itself a reasonable way to squeeze the bubble in real estate prices. However, judging from the actual situation, some price reductions have obviously interfered with the market, and have also led to blind price reductions for various buildings, thus interfering with the market. This is obviously something the government needs to control.

Ten counts, 30% reduction

According to this document, there are currently ten main manifestations of the real estate price reduction in Enshi City, four of which have clarified the survey data: some real estate prices are high for the record price, while others are low for the opening price. The price reduction range is reduced by 800 yuan -1200 yuan/m2 on the basis of the record price; Some buildings are pre-sold and sold in stages, with the price drop in 300 yuan -500 yuan/m2 before and after the sale. Some buildings did not follow the market price rules for no reason, and the overall price of buildings dropped significantly from the same period last year-200 yuan -500 yuan/m2. Some of the remaining orders were sold at sales prices ranging from 4,000 yuan to 4,500 yuan per square meter.

The other six include attracting customers at low prices, causing great market fluctuations; Comprehensive costs and actual sales prices form a huge contrast, leaving room for unsustainable development of real estate. Low-cost storage of customers, even without pre-sale permits, that is, in disguised form to collect deposits and cards; Cooperate with the third party to reduce prices by means of distribution and electricity sales. Disrupt the market by reducing prices in disguised forms such as construction fund deduction houses and internal welfare houses. Sales staff to other sales department soliciting, bad influence; In violation of relevant regulations, the floor design height was lowered to about 2.7 meters, laying hidden troubles for homebuyers to settle down.

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