Analyst Warns Shenzhen Home Prices Could Fly Out Of the Universe

As astute China analysts warned, stimulus efforts would likely flow into housing. They were yet again proven correct: Coronavirus: China’s bank loans intended to help small businesses are actually fanning Shenzhen’s property bubble

It sounds like the situation is much worse than initial reports. One analysts says the situation is out of control and prices could "fly into the universe." Some areas have seen prices jump nearly 40 percent since March. The government in one part of the city said 63,000 yuan per square meter is the "guidance price" as market prices soar past 100,000 yuan per sqm. The government may bring the situation under control, but the chaos unleashed by stimulus efforts is a reminder of the limits of government intervention.

iFeng: 深圳再出手整治楼市：下架高价二手房源，出台官方指导价

Shenzhen ’s Guangming District, which is on the verge of public opinion, shot the first shot in this round of special rectification actions in the property market. The Economic Observer was informed that the Guangming District Housing and Construction Bureau verbally communicated 63,000 yuan / square meter to the four hot spots in the area. "Guidance price".

...A second-hand disk in Huanggang, Futian, Shenzhen, has been lively since the end of March. The 500-person owner WeChat Group has become lively.

In March, the average second-hand transaction price of the community hovered around 73,000 yuan / square meter. However, the unit price of RMB 70,000 from Guangming, Longgang and other areas outside Shenzhen's original special zone touched some owners' nerves. In mid-April, an owner called in the group: less than 100,000 yuan (per square meter) did not make a shot, and three or two small owners responded immediately.

"I am bullish to 80,000 yuan (per square meter)." Other owners in the group proposed. However, he was immediately refuted by the appeal to the owners, "What is 80,000 yuan (per square meter), many second-hand disks in Longgang are more than 70,000 yuan (per square meter)."

When faced with doubts and objections for the second time, the owners who called for price increases emphasized again, "It is already 100,000+ times, and it is still saying that 80,000 is not for sale."

iFeng: 深圳整治楼市再出手 部分高价二手房强制下架华润城被重点监控

In this troubled spring of 2020, the property market is not calm. The Shenzhen property market is particularly weird, as if to repeat the madness of 2015.2016. Fortunately, all kinds of chaos are being attacked by the serial policies of government departments.

Following the severe crackdown on the new house market, "covering up for sale", "high-price tea consumption", and the suspension of online signing of Wanxi and other projects, the regulators' rectification actions on the second-hand housing market are also in full swing.

On April 22, the Shenzhen Housing and Urban-Rural Development Bureau and other five departments stated in a joint statement: "Public opinion reflects the recent high price of second-hand housing in some residential areas. After preliminary investigation, it is mainly due to the excessively high listing prices of some homeowners and serious market deviation Case."

Based on this, the Housing and Urban-rural Construction Bureau first required all intermediary platforms to delist houses with unrealistically high prices.

The 21st Century Business Herald survey revealed that at present, Nanshan, Shekou, Baozhong, Guangming and other areas are all required to be removed from the intermediary platform.

According to the Shenzhen Real Estate Agents Association, taking Shenzhen City Red Disk and Nanshan Benchmark Community China Resources City Phase I as an example, this month its highest quotation on three real estate information platforms exceeded 200,000 yuan per square meter. The unit price of the online listing is 65.9% and 55.7% higher than the average listing price of the community, respectively, which is significantly higher.

According to the industry in Shenzhen, the current second-hand housing units with a unit price of 200,000 cannot be listed for trading.

Recently, "Guangming House Price Breaks 7" has also been hotly discussed. According to information on the Internet, the Deyoumen store in Guangming District, Shenzhen has issued an internal notice, "Chuanqishan, Guangda Daidi, Xindi Central, Jiulongtai four key real estate external networks The unit price of the display shall not exceed 63,000 yuan. Those exceeding the price will be removed from the shelves as soon as possible.

According to insiders of the intermediary agency, they have received notice from the Housing and Urban-Rural Development Bureau that all online and offline listing information and window advertisements must be true and not fictitious, and no listings that are significantly higher than the market price should be given to property owners. Yuan went to investigate immediately.

Starting from April 28, the Housing and Urban-rural Construction Bureau will work with the Market Supervision Bureau and the Public Security Bureau to begin offline inspections. A number of intermediaries have confirmed the news that the store will be inspected.

Relevant persons from the Shenzhen Real Estate Agency Association revealed that hotspot areas and high-priced houses have been monitored as early as April 18, and it is expected that the first batch of transactional house lists will be announced after May 1 and will be regularly announced in the future.

At present, the reporter has landed on shell and other real estate information platforms, and has not been able to inquire about houses with a unit price of more than 200,000 yuan / square meter in China Resources City, with a maximum of 195,200 yuan / square meter, and there is indeed no 63,000 yuan / square meter in Guangming New District The above listings had previously been listed in Guangda, which had broken the price of 70,000. Now only 60,700 / sqm of listings are for sale.

Li Yujia, principal investigator of the Guangdong Housing Policy Research Center, pointed out: "The current second-hand housing market in Shenzhen has completely failed. It is necessary to intervene with strong administrative means to prevent it from flying out of the universe. Unconventional periods call for unconventional measures."

Under the striking rhythm, the long-rumored “Shenzhen second-hand housing guide price” is also brewing. According to Shenzhen second-hand housing intermediaries, the official will limit the price increase of second-hand housing in the Shenzhen area, and is discussing policies and details, including prevention There are loopholes such as Yin-Yang contracts in the market.

Li Yujia believes that "on the basis of the assessment of the area (serving the taxation of second-hand housing), the guide price is issued in the unit of the area. As long as this guide price is controllable, the price of the entire area is anchored, and the price rises in groups and the violence The logic of ascension collapses. "

The government is cracking down on developers. This iFeng article discusses the punishment of a developer: 深圳千万豪宅捂盘挨罚！200套房源遭锁定 有中介因喝茶费被终身禁业