[The Epoch Times, December 06, 2023]Recently, Beijing’s housing prices have plummeted, buyers directly cut off 1 million, and sellers have entered the most humble period in history. It is common for second-hand houses in Beijing to be sold for 1 million yuan or even 2 million yuan lower than the listing price. This news has attracted widespread attention, which is believed to be an unprecedented scene in Beijing’s real estate market.
According to multiple mainland media reports, many real estate agents have recently stated that buyers ask for a price reduction of 1 million yuan when purchasing a house. This phenomenon is becoming more and more common in Beijing’s real estate market, putting sellers under pressure. Some real estate agents said that there are sufficient houses on the market now and buyers have a lot of choice, so they have more room to negotiate prices.
“China Times” reported that the house in Beijing is becoming a big stone weighing on Lin La (pseudonym). “I wish I had known better than to be in such a hurry to buy. It might have been a hasty decision.”
In mid-2022, Lin La spent more than 8.2 million yuan to purchase a house in the Fourth Ring Road. “For the first house, I took out a 50% loan. The reason I bought this house at that time was because of the good location and convenient transportation. I bought it after I fell in love with it. At that time, the real estate market in Beijing also started to go down, but many people said they were relaxed. Prices will definitely increase after the policy is implemented, so I didn’t hesitate at that time,” Lin La said.
Lin La said that after completing the house procedures, he joined the community’s owner group. “In October, I checked my cell phone and found that an owner in the same community wanted to sell his house. The apartment layout was the same as the one I bought last year, and the price quoted was 800,000 yuan lower than my house.” Lin La said.
Many real estate consultants and home buyers said that there are not a few cases where the transaction price of houses in the same community and the same apartment type has dropped by one million yuan within half a year. At the end of June this year, Vanke Xingyuan sold a 157-square-meter three-bedroom apartment for 13.28 million yuan. However, at the end of October this year, the transaction price of houses of the same type fell to 10.8 million yuan, a drop of more than 2 million yuan in 4 months.
“Second-hand houses have dropped by 10,000 to 20,000 yuan per square meter, and they are still like this now.” Mingge (pseudonym), a real estate agent in Chaoyang District, said.
“Buyers always want to lower the price by 1 million yuan, and then continue to negotiate the price.” Mingge said that in Beijing’s real estate market, buyers already have absolute say. A transaction details sheet presented by real estate traders showed that it is common for second-hand housing transactions in Beijing to be 1 million or even 2 million yuan lower than the listing price.
Taking the housing in the school district around Deshengmen as an example, most of the second-hand houses sold in Deshengmen in November were nearly 1 million yuan lower than the listing price. “I tell my clients now that the buyer’s price is definitely not as good as your psychological expectation. However, the most important thing right now is to sell as soon as possible. As long as the price is about the same, sell as soon as possible,” Mingge said.
Later, Mingge emphasized: “Many sellers may not be able to accept this sentence, but the trend of house prices will most likely decline in the future, especially for old and small houses. Even the market behind houses in school districts will become smaller and smaller.”
Maitian Real Estate said that compared with October, the listing price of second-hand houses in Beijing (Maitian covered properties) fell by 0.3% in November compared with the previous month, and the bargaining space for second-hand houses has also expanded compared with the previous month. According to statistics released by Maitian Real Estate, the bargaining space for second-hand housing in Beijing expanded by 0.5 percentage points in November compared with the previous month, and the bargaining space reached the highest level during the year.
The surge in the number of second-hand house listings has expanded buyers’ choices, and some sellers who want to sell old and buy new have been unable to purchase new homes due to poor transactions.
Relevant data shows that housing prices in many cities around Beijing have fallen to varying degrees in recent years. Among them, the decline in some popular cities was particularly significant, and house prices in some areas even halved.
Oversupply is one of the important reasons for the decline in housing prices in the Beijing area. In the past few years, a large number of real estate projects have appeared in the Beijing area, and supply has exceeded demand, causing downward pressure on housing prices.
The market has had mixed reactions to this wave of housing price declines. Some homebuyers expressed delight, thinking it was a good time for them to get in the car. They believe that as the market adjusts, there is room for further declines in housing prices. Some sellers have expressed concern that falling house prices will impact the value of their property and could even lead to them falling into negative equity.
According to relevant statistics, since the beginning of this year, the average house price in 100 cities across the country has continued to decline, with the decline reaching the highest point in recent years. Not only have housing prices in first- and second-tier cities fallen, but third- and fourth-tier cities have not been spared either. This kind of general decline is unusual in history and shows that the market is undergoing profound changes.
Editor in charge: Fang Xiao#
2023-12-06 08:57:56
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