Home price-cuts get steeper, more extensive
BEIJING -- Just like what China's millions of homebuyers have long expected, a nationwide price cut in new home sales has finally begun, as increasing inventories and continued government curbs are pushing Chinese property developers to court more buyers.
China Vanke, the country's largest real estate developer by market value, led the wave of sales by lowering prices of their housing projects in Beijing and south Guangdong province starting this month.
In Beijing, new houses of Jinyu Vanke city in Changping District will be sold at 14,000 yuan ($2,204.7) per square meter in November, which is a 3,000 yuan's drop. It has attracted more than 600 house hunters.
China's leading property developers are taking the same steps, with Agile Property, Capital Group, Evergrande and R&F Property, all reported to have cut price to reduce inventories and boost sales volumes.
But in Shanghai, the strategy of price-cuts seemed to have met obstructions.
When China Overseas announced a 30-percent discount on group sales promotion in its Scenic West Coast project late last month, more than 400 of its existing homeowners protested furiously and threatened to sue the company.
China Overseas' sales campaign did not last long, as local government has required developers to file applications to regulators before carrying out large-scale price adjustment, whether it's a rise or a reduction.
China Overseas was not the only property firm that has sparked disputes over house price cuts in Shanghai. At least four real estate projects that cut prices sharply were reported to have faced strong protests.
Increasing pressure
Despite pressure from existing homeowners, market analysts are expecting more price-cuts as declining sales and increasing inventory are putting more strain on property firms.
In September and October, only 10,743 homes were sold in Beijing, down 46 percent from a year ago. New home sales in the first ten months totaled 69,079 units, down 17.8 percent year-on-year, while second-hand home sales dropped 35.8 percent to 101,188 units, according to .
According to the Centaline Property Agency, a supply of 9,152 new homes in October has added Beijing's total house supply to 118,000 units, a new high since June 2009.
It would take 22 months to consume the inventory even if there were no new supply, said the agency.
The total inventory of 131 listed property companies has reached 983.8 billion yuan, up 44.93 percent year-on-year. House inventory in the third quarter has increased by 12.31 percent from the second quarter, according their third-quarter fiscal reports.
Meanwhile, the 131 listed property firms are witnessing a negative cash flow of 63.25 billion yuan, down 16.37 percent year-on-year and down 19.31 percent from last quarter.
Further reductions
Zhang Yue, chief analyst with Home Link China, a leading real estate agency, said with large trading volume and strict government curbs, Beijing is seen as bellwether for the market.
"The intention of price-cuts will get stronger in the fourth quarter," said Zhang, citing figures that in Beijing, 53 of this year's 90 new residential projects have already started to offer discounts.
Zhang Dawei, analyst from the Centaline Property Agency, said the first-tier cities have come very close to the house price turning point.
"If the government continues to maintain firm curbs on the real estate market, house prices will reach a turning point in March next year," Zhang said.
Premier Wen Jiabao said on Oct 29 the government will continue to maintain its control over the real-estate market while seeking to fine tune other economic policies.
Average home prices in the country's 100 major cities fell for the second consecutive month in October to reach 8,856 yuan per square meter, down by 0.23 percent last month from September, said the China Index Academy in its latest report.
Chang Zhi, chief analyst of Century 21 China Real Estate, said he expects more real estate companies in the second- and third- tier cities to follow large firms' steps to cut house prices under the current policy.
"A new round of home-price declines may come in one or two months," Chang said.
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Editor's PicksNew home sales rose last year in Beijing -
New home sales rose last year in Beijing
A total of 123,036 units of newly built houses were sold in Beijing last year, up 64.4 percent year-on-year, said Beijing's housing authority. The units were sold at an average price of 20,541 yuan ($3,299) per square meter, up 10 percent year-on-year.
The turnover volume rose starting from the middle of the year, and reached the highest point in December.
The land market also warmed up at the end of last year. In December alone, four parcels of land were sold in Beijing, three of which at premiums over 100 percent.
A large parcel of land in Tongzhou, a Beijing suburb, was sold last week for 1 billion yuan, 491 percent more than the starting price — the highest premium paid at an auction in the capital in two years.
[source:china daily]错误：您所请求的网址（URL）无法获取
您所请求的网址（URL）无法获取Beijing,all home to over three million automobiles,have also witnessed Strong growth in vehicle sales.两个逗号中间的怎么翻译,all home to 分析下这句话的成分,_百度作业帮
Beijing,all home to over three million automobiles,have also witnessed Strong growth in vehicle sales.两个逗号中间的怎么翻译,all home to 分析下这句话的成分,
Beijing,all home to over three million automobiles,have also witnessed Strong growth in vehicle sales.两个逗号中间的怎么翻译,all home to 分析下这句话的成分,
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