In order to stabilize the real estate market, more and more cities restrict the “malicious price reduction” of real estate enterprises or introduce the policy of price limit order.
Recently, Jiangsu Taizhou Real Estate Association issued a proposal to all real estate enterprises, requiring all real estate enterprises to strengthen industry self-discipline and standardize business behavior; Legally and reasonably determine the sales price, scientifically and rationally formulate the promotion plan, do not maliciously reduce the price, and do not take unfair means of vicious competition.
According to the statistics of E-House Research Institute, in the first half of 2021, the monthly turnover of new commercial houses in Taizhou generally exceeded 200000 square meters, while in the second half of 2021, the turnover shrank significantly, and the monthly turnover basically hovered around the scale of 100000 square meters.
Taizhou is only a microcosm of the third and fourth tier cities. Under the superposition of various factors, since the second half of 2021, the transaction in the national real estate market, especially in the third and fourth tier cities, has cooled sharply, some real estate enterprises have liquidity difficulties, and price reduction and promotion has become the norm.
Since August 2021, more than 20 cities have taken corresponding measures for substantial price reduction of real estate enterprises, including Yueyang, Guilin, Kunming, Shenyang, Jiangyin, Zhuzhou, Tangshan, etc. These cities may directly issue a “price limit order”, or hold a symposium to prevent “malicious price reduction” of real estate enterprises, or conduct interviews with relevant price reduction real estate enterprises.
Among them, Yueyang provided official guidance on the sales price of commercial housing, making it clear that the sales price of new housing shall not be lower than 85% of the record price; Changchun requires real estate enterprises to reasonably declare and publicize the pre-sale price of commercial housing, and the actual sales price shall not be less than 10% off.
Tangshan held a symposium on real estate enterprises, including suppressing “malicious price reduction” to maintain market stability. Kunming also held a symposium on the implementation of the work requirements of “stabilizing house prices, low prices and expectations”, emphasizing the strengthening of market supervision and supervision. If it is found that the market is disturbed, especially the malicious price reduction, the online signing of the project will be stopped if the circumstances are serious.
“Under the high pressure of the three red lines, real estate enterprises urgently need to withdraw funds. In order to speed up sales collection, developers have strengthened marketing efforts and reduced prices.” Chen Xiao, senior analyst at Zhuge find a house data research center, said.
According to the sales price index of commercial housing in 70 large and medium-sized cities released by the National Bureau of statistics, in November 2021, the number of new commercial housing cities fell month on month to 59, an increase of 7 over the previous month; Rising cities fell to single digits, the lowest level in nearly two years.
Industry insiders believe that with the recent market changes, to prevent the property market from falling too fast or becoming a future policy trend, the “limit decline order” is expected to be further expanded.
“A number of cities have issued price limit orders to limit the price reduction of real estate enterprises in order to ensure the smooth operation of the real estate market. Although the market is in the cooling channel, the negative impact of the rapid decline of house prices on the market is very direct. However, it is worth paying attention to whether the price limit order can quickly restore the market to a stable state.” 58 anjuke Real Estate Research Institute branch president Zhang Bo believes.
In order to maintain the stability of the property market, some cities not only restrict the price reduction of real estate enterprises, but also issue relevant supportive policies from both sides of supply and demand. These policies mainly include house purchase subsidies, deed tax relief, increasing the amount of provident fund loans, etc., with an obvious sense of supporting the market.
Ding Zuyu, CEO of E-House enterprise group, predicts that with the loosening of the margin of credit policy, the overall industry confidence is gradually recovering, and the overall national house price may stop falling and stabilize in the first quarter of 2022.
(Financial Associated Press)
