Second Tier Hot City Property Market Survey Series Report: Foshan Property Market: Hot Appearance, Lack Of Stamina

In 2020, after becoming a new member of the "GDP trillion club", Foshan also liked to mention the title of "new first tier city", which has climbed along with Foshan's status and its real estate market.

Since May, the property market in Foshan has continued to be hot. It was first reflected in the market warming of the earth auction market. Secondly, although the new house did not show obvious gains, turnover continued to rise for three consecutive months. This is caused by the auction of the earth pat, the cancellation of the new house price and the lowering of the threshold for the purchase of talents.

The strategic planning of Foshan, Hong Kong and Macau has brought great benefits to the housing market. There may be room for further increase in housing prices. However, the secondary housing market is cold, and the stock is difficult to digest. The Foshan property market seems to be booming, but the growth rate of real estate prices is insufficient.

Hot recovery of the property market

Since May, the property market in Foshan has gradually got rid of the impact of the previous epidemic and resurrected with blood.

The enthusiasm of developers to buy land suddenly broke out, the market of the earth pads was hot, and the high premium plots were frequent.

The housing industry has always been a war without smoke. Zhu Weide, director general of Foshan Zhongyuan strategic research center, pointed out that the land value of the Guangzhou Guang and Foshan government's key areas, such as new town, Qian Deng lake and Qi Cha, will be the focus of many brand Housing enterprises.

Three Longwan competition is fierce. In May 28th, after 26 rounds of bidding, China Sea won 4 billion 625 million yuan for the New South San Shan new town in the South China Sea, excluding the floor price of 16269 yuan / m2, and the premium rate reached 25%.

Statistics show that in the region, 4 plots were sold in 4-5 months, 3 of which reached Foshan's total historical value of TOP10, with a total value of 17 billion 750 million, accounting for over 40% of the city's total.

Central Plains real estate data show that in 1-5 months, the total volume of commercial and residential land in Foshan was 49 billion 350 million yuan, up 46% from the same period last year, and the total area was 2 million 184 thousand square meters, up 17% from the same period last year.

The reason behind this is that since March, the highest limit land price has been abolished in Foshan.

"The abolition of the maximum restricted land price is actually a gesture that encourages everyone to take the initiative, and is also to give housing companies more confidence from the supply side." Xiao Wenxiao, chief analyst of the Guangzhou region.

While land price fixing is relaxed, the land supply side also continues to expand. Central Plains real estate data show that in 3, 4 and May this year, the supply of commercial and residential land in Foshan was 1 million 169 thousand square meters, 791 thousand square meters and 534 thousand square meters respectively, up 563%, 95% and 121% respectively, up from May to 2 million 828 thousand square meters, up by 56% over the same period.

In June, Foshan launched 11 plots, with a total starting price of over 7 billion 800 million yuan, and the market of the earth auction is expected to continue to be active.

The Central Plains strategy research center of Foshan pointed out that the mass release of quality plots attracted a number of housing companies to rob. The hot end of the transaction was driven by the transaction of high-quality premium plots, and without price fixing, the floor price increased gradually. The average floor price of Foshan rose significantly in May, up 29% over the same period.

While the land market is heating up, the property market is also warming up. Affected by the epidemic, the "small spring" lag behind the backlog of housing demand continued to release, superimposed in March, Foshan talent purchase threshold relaxed to secondary school education, property consumer group expansion of the good news, market confidence restored significantly, developers push goods increased, new housing turnover reached a small peak in May.

According to Kerri data, in May, there were 50 new releases in Foshan, with a total sales volume of 5836 units, such as Yi Cui Zun dike, Hengda Royal LAN Ting, upper Kun Hanlin Lake No.1, Ou Pu Huacheng and other hot selling projects to over 7. In April, after breaking tens of thousands of units, the turnover of new houses in May also climbed to 10000 words, and signed 10925 sets of nets, and turnover continued to rise in March.

In order to sprint half year's performance, housing companies push goods more vigorously. In May alone, there were 50 new ones, pushing up sales volume of 5836 units, and some of the hot items went to 70%.

Insufficient growth and stamina

The heat of the new house has not been transmitted to the second-hand housing market in Foshan.

Compared with the rising prices of new houses, the second-hand housing market is cold, and the stock is difficult to digest. Many owners are reluctant to change the price of their own houses. The second-hand housing market is plunged into a dilemma of double volume and price.

In the hot areas of Foshan, such as Qian Deng Hu and Ya Yi, the turnover and price of second-hand housing are showing signs of downturn. At the end of last year, the list price of thousand lights lake had dropped to less than 30 thousand.

In the Asian Art sector, the price of second-hand housing has not declined significantly, but it has only been maintained at the level of 2017, or slightly higher than that in 2017, less than 10%.

Foshan housing network data show that in recent years, the volume of second-hand housing in Foshan showed a significant downward trend. From the 87987 high points in 2017, diving all the way to 53619 sets in 2019, it almost returned to the level of 2015.

It is worth noting that the secondary housing market in Foshan reached its peak in 2017, benefiting from the dividend policy of the property market. In 2016, the Central Bank jointly issued a notice with the CBRC to reduce the first payment ratio of the first suite and the two suite of non restricted cities. Foshan property market benefits, new housing, second-hand housing turnover volume of news.

However, the policy dividend stopped in 2017. Foshan stopped the policy of buying houses, and gradually began to integrate the points. It superimposed the new house price restriction in 2019 and reduced the threshold for the purchase of talents.

Anju data show that in May 2020, Foshan second-hand housing prices of 12896 yuan / square meter. In December 2017, the housing price was 10229 yuan / square meter. In the three years, the price of second-hand housing in Foshan rose by more than 2000 yuan.

Yan Yuejin, a researcher at the Yi Ju Research Institute, said that although the "Guangfo city" had allowed Foshan to undertake a large number of residential spillovers in Guangzhou, the final decision was whether supply and demand were the trend of price movements. The overall supply of Foshan's new houses was large, and the space of second-hand housing was eroded.

Because the second-hand housing transaction cycle is long, the procedure is complex, plus the property right time is short, the apartment type is older and other factors affect the home ownership experience.

In addition, Foshan, a city with a population of about 8000000, is mainly self occupied, and the demand for investment and speculation is not as large as that of Shenzhen.

In addition to the obvious differentiation of house prices in Foshan, Chancheng, Shunde and the South China Sea are still on the rise, while the prices of Sanshui and Gaoming have dropped, which discourages investors.

Overall, housing growth in Foshan is weak and there is little room for room prices to continue to rise.

Even in the new housing market, the Foshan property market is not generally hot, but showing a trend of differentiation.

For example, the thousand lights lake located in the South China Sea is the most prominent protagonist of the Foshan property market in recent years. It is both a financial center of Foshan and a direct pass of Guangfo subway. The price of the new plate has exceeded 50 thousand / square meter. However, the price of Sanshui and Gaoming new plates in the non restricted area has dropped.

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