Second Hand Housing Transactions Fell Nearly Half Of Beijing Property Market "Brakes"

Beginning in late May, Wang Lei, a property buyer, has been looking at the Shili River area in Chaoyang District, Beijing. After careful consideration, he intends to start a second-hand housing in the "landscape garden" community. But recently, the intermediary told him that the housing in the district could not be seen for the time being.

The reason for this situation is that the eighth Mile Street, which is located in the residential area, was upgraded to a risk area in June 15th. According to the requirements of epidemic prevention and control, the district has implemented more stringent access management, and the work of on-line housing and strip reading has been suspended, and the intermediary shops in the region have been asked to "suspend all kinds of gathering activities".

According to the shell Research Institute, from June 15th to June 18th, Beijing's chain volume fell by 45% over the same period of the previous week, of which Fengtai District dropped by 66%.

Recently, new crown pneumonia cases reappeared in Beijing. According to the epidemic prevention and control requirements, secondary and high risk areas of second-hand housing transactions have been postponed, some new housing sales offices in Fengtai District and Daxing District have been temporarily closed, and a number of joint property rights projects have announced the delay of the housing selection scheme. Beijing property market is inevitably affected.

Prior to the May, Beijing commercial housing (new housing + second-hand housing) transaction size exceeded 20 thousand sets, reaching the "317 New Deal" after 2017 the highest point.

Today, the Beijing property market "little spring" has cooled rapidly.

Multiple sales offices closed

In June 15th, the Beijing Municipal Housing Construction Commission issued a circular calling for strengthening the prevention and control of epidemic situation in Beijing housing rental agencies. Stores in the epidemic and high-risk areas should suspend all kinds of activities. On the evening of June 16th, the response level of public health emergencies in Beijing was adjusted to level two. No stoppage, but encourage home office and telecommuting.

According to the twenty-first Century economic report, according to the requirements of epidemic prevention and control, some of the new housing projects in Fengtai District, such as Nord's yfu and Zhen Fu, have closed the sales offices and converted them into online sales.

In Fengtai, Daxing, Fangshan and other regions, there are other projects that have not closed the sales offices, and have made nucleic acid testing for all the home buyers consultants. However, a sales manager of a project in Daxing District said to the twenty-first Century economic report that although the sales offices were not closed, the number of people who saw houses in recent days was significantly reduced.

At the same time, according to official information, a number of property rights housing projects in Beijing will be postponed, including Chaoyang District Indus Bay Garden, Fengtai District Kang run home, Yan Bao, Yin Di home, Hongye Hing Garden, nunting new court, Guo Zhuangzi home, etc. the starting time will be further announced according to the development trend of the epidemic.

This situation will have a short-term impact on Beijing's new housing transactions. The housing prices of the former said that the new housing transactions in the three districts of Beijing, Fengtai, Daxing and Fangshan will decline and affect the short-term trading scale of Beijing's new houses. "These three areas are relatively large areas of Beijing's new housing supply in the near future, which will affect at least 20%-30%'s new housing transactions in the short term."

Second hand housing, as part of the community to strengthen access management, as well as the epidemic will lead to a decline in willingness to buy houses, second-hand housing market transactions also declined.

Xu Xiaole, chief market analyst of Shell Research Institute, believes that the current Beijing epidemic rebound has a significant impact on short-term market transactions. Shell Research Institute data show that in June 13th and June 14th, the two day of the weekend, Beijing chain household turnover than the previous three weekend average decline of 17%, of which Fengtai District fell 23%. From 15 to June 18th June, Beijing's chain volume fell by 45% over the same period of the previous week, of which Fengtai District dropped 66%.

Xu Xiaole said that although the number of confirmed cases in Beijing began to decline recently, epidemic prevention and control were still cautious. In June, the second-hand housing transactions in Beijing were expected to decline slightly.

Annual impact or limited

Before the cooling of the market, the property market in Beijing is experiencing the hottest time in recent years. From the end of 3, the property market in Beijing gradually increased, and a high trading point occurred in May.

According to the data of the Beijing Municipal Housing Construction Commission, in May 2020, the size of the second-hand housing net signed in Beijing was 16 thousand sets, an increase of 39%, an increase of 75% over the same period last year. On the scale of the 4172 set of new housing transactions, the scale of commercial housing transactions in Beijing exceeded 20 thousand in May, reaching the highest level after the 317 new deal in 2017.

Among them, in May 29th, the scale of Beijing's second-hand housing transactions was broken thousands of times, which is the first time since March 2019.

At the same time, due to the new reform of education to stimulate the second-hand housing transactions in Xicheng District warming, in May, the average price of second-hand housing transactions in Beijing has also been significantly improved.

But entering the June, occupying about 8 of the market's second-hand housing transactions began to decline. A number of agencies reported to the twenty-first Century economic report that since June, the number and volume of second-hand housing in Beijing will be significantly lower than that in May. This is mainly caused by two reasons: the volume of school district housing transactions is declining, and some housing prices are rising.

Most respondents believe that the recent epidemic is accelerating the cooling of the market in the short term. Among them, the volume of Beijing property market in June may be 3 to 4 decline. In the long run, although the prevention and control is becoming normal, if the epidemic can be quickly controlled, the market will not be affected.

Xu Xiaole believes that in the long run, the current Beijing market is mainly to improve the demand for habitation. The demand for epidemic suppression will gradually be released in the following months as the epidemic subsidises. The impact of the epidemic on buyers and sellers is limited, and the average annual price will not fluctuate significantly.

The housing companies also said that the project's customers were in good condition, and the epidemic would only delay the release of demand. The only worry is the duration of the outbreak and whether there will be any recurrence in the second half of this year. At present, if the epidemic situation can be quickly controlled, the sales rhythm of the project will not be greatly affected.

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