China’s 66 cities real estate market transaction volume plummeted, Shenzhen dropped by nearly 80% | Real Estate | Second-hand Housing | Property Market

[Epoch Times September 12, 2021]In August of this year, 21 cities including Beijing, Chengdu, Shanghai, and Shenyang successively issued more than 30 real estate control policies, and the new and second-hand housing markets in many places have fallen sharply, even frozen. The word “decrease” has almost affected every port from the new house, second-hand house, and land market to financing for real estate enterprises.

According to a report from the Shell Research Institute, in August, the new housing market in 66 cities across the country continued to decline month-on-month.

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Among the 21 representative cities monitored by the Zhongzhi Research Institute, 17 cities experienced a month-on-month decline in transaction area. Among them, Wuhan had the highest decline, reaching 82%; hot cities such as Nanjing and Chongqing followed closely behind. At the same time, the year-on-year declines in Chongqing, Nanjing and Wuhan also remained high.

According to data from the Shenzhen Municipal Bureau of Housing and Urban-rural Development, after the second-hand housing transfer volume in July fell by more than 80% year-on-year, the transaction volume of second-hand housing in Shenzhen in August was 2,043 units, again plummeting 77.28% year-on-year, setting a 10-year low.

In addition to Shenzhen, there are also former C-level cities such as Hangzhou and Wuxi.

Hangzhou’s “8.5 Real Estate Market New Deal” was promulgated to further strengthen the housing purchase restriction: two consecutive years of social security must be paid for less than 5 years of residence, and 4 consecutive years of social security must be paid for non-local accounts in order to purchase a house within the purchase restriction.

In August, Hangzhou’s second-hand residential transaction volume fell to 3,160 units. Research by E-House Research Institute showed that August fell nearly 50% month-on-month and nearly 60% year-on-year, setting the lowest monthly transaction volume in August in the past decade.

Similarly, Wuxi issued second-hand housing guidance prices on July 26, making it the seventh city in the country to issue a second-hand housing transaction reference price release mechanism after Shenzhen, Dongguan, Chengdu, Ningbo, Xi’an, and Shaoxing. The trading volume in August was affected to a certain extent and fell to 2.4%.

Regarding the recent frequent official launch of real estate control policies, Zheng Yi, an insider at an investment bank in mainland China, told The Epoch Times that the CCP’s move was because of fear that a large number of personal mortgages would be cut off under the circumstances of the continuous economic downturn, rising unemployment, and increasing real estate supply cuts. , There may be a subprime mortgage crisis.

E-House Research Institute said that considering that this year’s hot-spot city regulation is rare in history, and the month-on-month increase in second-hand housing prices in 13 hot-spot cities has fallen for many months, it is expected that the year-on-year increase in second-hand housing prices will continue to fall next month.

The “Daily Business News” reported that the total amount of land transfer fees in 300 cities across the country was 226.4 billion yuan in August, a decrease of 17% from the previous month and a year-on-year decrease of 49%.

In a single month in August, the industry-wide financing data is also not optimistic. A total of 62 domestic and foreign bond financings were issued, a decrease of 27 from the previous month. The issuance scale was equivalent to about 57.1 billion yuan, a decrease of 39.8% from the previous month and 54.2% from the same period last year.

Among them, in August, overseas financing issued a total of 6 bonds, the financing scale was about 6.2 billion yuan, a decrease of 77.9% from the previous month, and the main issuers of the bonds were all private housing companies, basically borrowing the new to repay the old.

The pressure on real estate companies to repay debts is still intensifying. According to data from the Shell Research Institute, the debt maturity of domestic and foreign bond financing in August was approximately 119.6 billion yuan, an increase of 3.3% from the previous month and 21.2% year-on-year. The net debt due by real estate enterprises was 62.5 billion yuan; Half of the debt in the period, in addition to the sales collection, puts a greater test on the financing ability of real estate companies.

There were 16 defaults on credit bonds in August, including 7 real estate-related defaults. The main types of defaults were failure to pay principal and interest on time.

With “new bond issuance less than the maturity of old bonds,” the future financing environment is still unspeakably optimistic. The Shell Research Institute predicts that under the objective environment and subjective wishes throughout the year, the scale of real estate bond financing will shrink as a whole.

Editor in charge: Li Bing#