Developers Offer Secret Price Cuts in Wuhan

In the past couple of months there have been stories of developers using promotional price cuts on homes to draw in buyers, but often buyers would find that there was only one home offered at the promo rate when they showed up to investigate. According to the latest news, developers have now begun secretly offering discounted homes, in some cases to the surprise of home buyers. Developers in Wuhan are selling homes at a discount of about 2-3% for serious buyers, but they are all holding the line on official prices. One agent even said, all the developers are telling them the same thing, do not cut prices. Basically, the cuts are designed to quickly move a serious buyer to close, instead of haggling with buyers. Sales have been strong enough to keep prices from dropping in Wuhan, but the developers are finding customers are increasingly taking a "wait and see" attitude. (开发商终服软:一边挺房价 一边暗地推大量特价房)

Banks in Wuhan are starting to offer normal interest rates again on mortgages, down from premium rates of 5% to 20% above the benchmark (some banks are even at a 40% premium), although credit standards are up. Buyers need to make larger down payments, the income needs to be double the former standard, and they need to have purchased a WMP from the bank. The benchmark rate is 6.55%, on a 1 million yuan loan, that results in a 6353.6 yuan monthly payment, but at the 5% premium, the payment rises by 217 yuan per month. 汉首套房贷款利率现松动 银行有条件执行基准利率.

Put these two stories together and it shows that at the moment, a decline in mortgage rates would support the housing market for a month or two.

Finally, what's the probably that the Wuhan government will loosen buying restrictions? It depends on the district according to experts. 武汉楼市限购松绑可行性多大?专家:分区调控有必要

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