The Price Of Restricted Housing Prices Has Dropped By 3600 Yuan: The Land Market In Beijing Has Cooled Significantly.

Beijing's land market continues to cool.

In December 12, 2019, Beijing quietly sold three land. Among them, a restricted competition plot located in the township of Fangshan District was captured by Zhong Jun at the base price of 4 billion 200 million yuan, and the other two commercial land were also sold at the bottom price.

In the relatively cold Beijing land market, the bottom price transaction is not uncommon, but the highest sale price limit set by the plot has aroused the concern of the industry.

According to the information of the land transfer documents, the selling price limit of the plot is 35344 yuan / square meter. In February 2017, the region also sold two restricted housing plots, with a sale price of 38994 yuan / square meter. In less than two years, the price limit of the restricted housing decreased by 3600 yuan / square meter.

Why does this happen in the Beijing market?

The inventory of Beijing property market is still large, and the regulation policy will continue to be strict. - Gan Jun photo

Unsalable restricted room

Limited competition housing is a new commodity housing category launched in Beijing in recent two years. It refers to the auction of land and the completion of the building by "limiting the price of housing and competing for land". From the end of 2017, Beijing began to sell the restricted housing plots on a large scale, and the restricted competition projects began to enter the market from the middle of 2018.

Central Plains real estate data show that in recent two years, restricted competition occupied 70% of the market supply in Beijing. The four districts of Daxing, Fengtai, Fangshan and Changping are the focus of supply.

The sale price of restricted rooms is usually lower than the market level of the same area because of the restriction on the price of the house at the stage of land transfer. But this does not mean that the restricted market is welcomed by the market. Due to the large supply and relatively concentrated areas, the overall digestion of Beijing restricted competition rooms is not good.

Zhongyuan Real Estate pointed out that as of the end of 11 this year, the total supply of 54 thousand restricted housing units in Beijing was 23 thousand, and the net scale was about 23 thousand, and the overall removal rate was only about 43%. The scale of inventories has exceeded 30 thousand sets for the first time.

"Restricted competition market differentiation is very serious, a few outstanding projects contract is relatively active, but in addition to this part of the net red project, most of the market entry problems." Central Plains real estate chief analyst Zhang Dawei pointed out.

Among them, the supply of more concentrated Fangshan District, restricted competition room to the rate of 22.7%, only for half of the city limit competition rate.

"There are some problems in the land itself, for example, the supporting facilities are not complete enough, and are far away from the central area of Fangshan District. But the price reduction is mainly because the competition in this area is more severe. A large housing company in Beijing said to the twenty-first Century economic report.

He said that in the past year, many restricted housing projects in Beijing had been cut, and Fangshan District was also not immune, but the overall sales situation was still not satisfactory.

This has a far-reaching impact on the Beijing property market. Zhang Dawei said that since the beginning of this year, the volume and price of second-hand housing transactions in Beijing have dropped, and the owners' wait-and-see sentiment is obviously serious. The main reason lies in the impact of limited competition on the market. Because, "as long as there is a restricted housing project in the region, it is easy to shunt the volume of the entire region and reduce the average price."

In the new housing sector, the 33074 commercial housing units signed in Beijing in November were the highest in the past three years. However, due to the inventory of new houses as high as 75 thousand sets, the transaction price has not increased significantly, and the market is not optimistic.

Premium rate to low point

This sentiment has been transmitted to the land market.

According to information from the Beijing municipal planning and Natural Resources Commission, 72 land transactions were completed in Beijing this year after the transaction of three land transactions in December 12th, with a total turnover of about 146 billion 400 million yuan. Although land revenue has continued to exceed 100 billion, it has declined for two consecutive years. Compared with 279 billion 600 million in 2017, land revenue in Beijing is nearly cut.

In terms of premium rate, according to the data of Zhongyuan Real estate, as of now, the overall premium rate of land in Beijing this year is 10.72%, which has declined for four consecutive years, the lowest point in recent years.

In terms of unit price, the average floor price of land sold in Beijing this year is about 19 thousand yuan per square meter, which has been down for two consecutive years.

In the past two years, land transactions in Beijing have been in a state of cooling. The former Beijing housing prices believe that this is because Beijing has implemented the most stringent property market regulation policy in the country. The poor housing market has affected the expectations of the enterprises. On the other hand, the restrictive clauses in the land sale of Beijing are quite numerous, and the profit margins of individual projects are very limited.

According to statistics of Zhongyuan Real estate, 46 residential blocks have been concluded in Beijing this year. Among them, there are 14 property rights plots, 20 restricted housing plots, and 12 restricted price plots.

This person believes that even in Beijing's unlimited price plots, there are usually more additional conditions, such as building business, co construction, education and other formats. In housing sales, the pre-sale prices of these plots are often limited. Therefore, the industry often referred to the Beijing market as a "profit black hole".

Analysts pointed out that near the end of the year, housing enterprises in the authorized budget is relatively inadequate, coupled with the approaching Spring Festival, Beijing land transactions are difficult to pick up.

For next year's land market, although Beijing requires residential plots to no longer match commercial plots, Zhang Dawei pointed out that the inventory size of the Beijing property market is still large, and the regulation policy will continue to be strict. Unless there are good quality plots with good location and limited conditions, Beijing land transactions will remain relatively dull.