In Shanghai, Shenzhen and Hangzhou, the French auction houses are cold.
Just over the weekend, 10 sets of ten million level luxury houses in the central famous products residence, Lane 288, Gulang Road, Putuo District, Shanghai were all sold below the evaluation price in the second auction
source: Ali Fapai
In the French auction housing market, it is rare to put 10 million luxury houses on the shelves at one time. In the first round of auction, these 10 houses were collectively sold, and some houses were even not signed up for auction. According to the auction data, the source of the 10 suites is located on floors 23, 25, 26, 27 and 28, No. 10, mingpin residence, central, covering an area of 176.94 square meters. According to the past sales publicity of Zhonghuan famous products residence, building 10 is the “king of the building”, and the large flat floor of 176.94 square meters is the last “King bombing” house type, which is highly concerned by property buyers.
The middle of 2020 was the hottest period of “picking up leaks” in Shanghai FA Pai housing. According to the statistics of Shanghai National auction, 64% of the residential houses sold in Shanghai in August of that year were sold at a price higher than the evaluation price. The hope of “picking up leaks” was dashed by the competition of many buyers, and only became a channel to “break the purchase restriction” at a high price. In January 2021, Shanghai Fapai houses were included in the purchase restriction.
Coincidentally, a few days ago, four sets of ten million French auction houses were sold in Hangzhou, all of which were lower than the evaluation price.
The four French auction houses in Hangzhou include large flat floors, improved houses, high-end Chinese style courtyard houses and old row houses on the Bank of Xianghu Lake. Among them, the first residence in Fenghua mansion, Xihu District, Hangzhou, has a construction area of 176.53 square meters and an estimated price of 11.4 million yuan. The final transaction was 9.34 million yuan, which was 2.06 million yuan lower than the estimated price; A suite of houses in guancuiyuan, Xixi villa, Yuhang District was sold for 10.5087 million yuan, which was 4.2 million yuan lower than the evaluation price.
In the same period last year, a 217.45 square meter courtyard of Mufeng Yihe Yayuan in Hangzhou Shenhua sector was sold at a starting price of 24.85 million yuan and an evaluation price of 31.03 million yuan. After 203 rounds of bidding, it was finally sold at 40 million yuan, equivalent to a unit price of 184000 yuan / square meter and a premium of nearly 9 million yuan
source: Ali Fapai
After the first auction, the starting price of the second auction directly decreased by 2.78 million yuan on February 10. Finally, the house with an area of about 88.17 square meters closed at the guidance price of 11.9965 million yuan.
According to the financial report of China Central Television, in recent years, the average annual number of French auction houses in Shanghai is about 2200, with a streaming rate of about 15%. In the whole year of 2021, the discount transactions of French auction houses in Shanghai accounted for about 54%, and the premium transactions accounted for 46%. This means that “picking up leaks” has become the mainstream of the current legal auction housing market. The once ultra-high premium and looting legal auction housing may be hard to see in the near future.
Lu Wenxi, an analyst at Shanghai Zhongyuan Real estate market, told reporters: “French auction of real estate has not been the mainstream of the transaction. Whether it is cold or not, it will not change its position in the transaction structure.”
French auction house is cold, behind which is the fever of investment speculation.
On the other hand, transaction risk has also become the reason for most people’s concern. “Some are cheap, and there may be other invisible risks behind them. Most of the auction houses are due to debt, so whether the high total price houses are cost-effective needs to be comprehensively evaluated. Generally speaking, there is a chance for experts to pick up leaks.” Lu Wenxi said.
The provisions on Several Issues concerning the qualification of bidders for judicial auction of real estate organized by the people’s court, which came into force on January 1, 2022, clearly points out that the people’s court will not permit the judicial auction of real estate organized by the people’s court if a bidder bound by the purchase restriction policy of the place where the real estate is located applies to participate in the auction.
In addition to the cities that have issued restrictions on the purchase of auction houses in the early stage, buyers in all regions of the country who do not have the purchase qualification of the place where the auction house is located cannot participate in the auction of auction houses. The method of drilling loopholes in the purchase restriction policy by buying auction houses is not feasible, and the cooling of auction houses has become an inevitable trend.
Then, in the case of low-altitude flight of French auction house prices, can individual buyers pick up leaks out of their own housing needs? Lu Wenxi believes that French auction houses are somewhat similar to second-hand houses. The sale depends on “fate”. For individuals, especially ordinary buyers, it is best not to easily choose French auction houses. If you really like a house, you must see the actual situation of the house, whether there is anyone actually living, whether there is a lease contract, etc., so as to avoid the situation that you can’t buy a house.
