Wuhan Real Estate Market Back in Business

Analysts are concerned about a hit to demand following a nearly three-month shutdown of the economy, but home sales and land sales have resumed.

iFeng: 解封第6天,还原武汉楼市真实现状!
After 68 days of trading, the Wuhan property market has gone through more than two months.

On January 23, Wuhan was officially closed;

On January 24, the sales department was closed, and transactions in the Wuhan real estate market were completely suspended;

On March 23, Wuhan issued six measures of real estate policy to support the resumption of the property market and lower the social security payment requirements, and relax the conditions for buying houses;

On April 1, three commercial housing projects received pre-sale permits;

On April 3, Wuhan announced that it could open its sales department in an orderly manner;

Until 0:00 on April 8th, Wuhan was officially closed, the city officially entered the normal operation channel, and the property market also ushered in a new condition.

The daily trading volume has repeatedly broken through 100, and the Wuhan property market has ushered in a new dawn.

This is the daily transaction details from March 30th to April 10th after the resumption of construction of newly built commercial housing in Wuhan.

On the second day of the closure of Wuhan on January 24, until March 29, the Wuhan property market transaction was suspended for a full 68 days. During the period, the number of online contracts for new commercial housing transactions was 0.

As shown in the figure, starting from March 30, the Wuhan property market transaction broke zero for the first time, and the single-day transaction volume of new residential buildings exceeded 130 sets on April 3 and 4; subsequently, due to the Qingming Festival, the transaction volume was Fell back.

However, after the opening of Wuhan, from April 8 to the present, the single-day transaction volume of newly built commercial housing has risen linearly, with 135 units sold on the 10th, and the transaction area exceeded 15,000 square meters.

Since the restart of the housing market transaction, a total of 773 new commercial housing units have been sold in Wuhan, with a transaction area of ​​88,666 square meters. The demand for house purchases under the suppression of the epidemic has begun to be released, and the housing market has indeed recovered well.
Land sales have resumed and developers are paying a premium.
On March 31, all ten parcels of land listed in Wuhan were sold, including six parcels of residential land, including the core areas of the main urban areas of Wuchang and Hanyang. Surprisingly, there is a residential and commercial site at the intersection of Caidian Street and Xihuan Road in Caidian District, and there is a premium rate of 24.72% for the online auction.

This is an important signal.

All the land is sold, there is no first-class auction, and there are also premium transactions. There are many first-line housing companies such as Longhu and Jinmao. This is enough to show that the leading housing companies have confidence in the city and the real estate market here. Yes, and it is more adequate.

The land market has been resurrected, and the supply of new homes has increased rapidly.

As of April 8, after the resumption of work in Wuhan, 7 pre-sale certificates have been issued, namely Wuhan Evergrande Technology Tourism City , Wuhan Evergrande Times New City , Oriental City Phase III, Xinli City, Peacock City Joy City Holdings, etc. The project will become the main source of new supply in the future.
The article lists Wuhan strengths as a real estate investment destination:
Many people have asked before, will the devastation hit Wuhan to a halt? Will it make Wuhan's property market slump?

The answer must be no.

First of all, we believe in Wuhan's strength.

First, Wuhan's GDP ranks eighth nationwide, surpassing Hangzhou and Tianjin.

In the ranking of the total economic volume of major cities in the country in 2019, Wuhan's GDP squeezed into the top ten with 16.223 trillion yuan, second only to Chongqing, Suzhou and Chengdu among second-tier cities.

Second, Wuhan's strong property market is a veritable first city in traffic.

In the 2019 annual report, Wuhan's annual turnover was 209,100 sets, with a total area of ​​23.24 million square meters, an increase of 25% and 30%, respectively. The two sets of sales data and sales area are far ahead in the country, ranking first, and 9 consecutive It ranks among the top three cities in China in terms of sales.

Third, housing prices in Wuhan are strong and not so easy to fall.
The latter isn't much of an argument, but the rest is true. Wuhan was a favored city in the nation's development plans. I expect the government will support Wuhan for the same reason New York City was favored after 9/11. Still, analysts say don't get too optimistic:
What I said before is strength and confidence. There is strength and confidence, but can the Wuhan property market really recover quickly?

It can only be said: difficult, the uncertainty is too great to be too optimistic.

1. The resilience of the property market is still weak, and the recovery is less than a quarter.

As mentioned earlier, since Wuhan resumed work, the highest single-day transaction volume was only 140 sets, but before reviewing the epidemic, the average single-day transaction volume in Wuhan should be more than 500 sets, and the resilience is less than a quarter, which is still very high compared with the historical average Big gap.

For now, it is more difficult to recover completely in the short term.

2. Will the downgrade on the demand side be a high probability event?

I think it is.

After the epidemic, how many of the one million graduates in Wuhan will stay this year? How many people will leave?

Last year, how many people will choose to leave the newly added population in the looting battle? How much competitiveness does Wuhan have in this year's looting battle?

3. Will the purchasing power be hit hard?

All along, the Wuhan property market has been dominated by domestic demand, and few foreign investors have flooded in. Because of the epidemic and the closure of the city, people here have to experience zero income for at least 3 months, or even a decline in income in the past year Frustrated purchasing power is already an indisputable fact.

2020 will be a difficult year for the Wuhan property market and even the national property market.

In the face of the challenge, we are cautiously optimistic and look forward to the day when Wuhan will return to its original state!

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