Exploring the Hangzhou property market: the local auction is calm and the market is lively

Exploring the Hangzhou property market: the local auction is calm and the market is lively
06:29, May 15, 2024 Shanghai Securities News

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On May 14, Hangzhou welcomed the first local auction after the New Deal. Although the attention of the property market has increased, the final transaction result has not been turbulent, and the four low-density homesteads were all sold at the same base price. This also means that for non core sectors, the cautious attitude of real estate enterprises to acquire land has not changed.

On the other hand, the Hangzhou property market under the influence of the New Deal has shown obvious warmth. According to the reporter's recent field survey, many secondary new buildings with good quality have seen a greater recovery in sales and transactions, and many house buyers come from people in cities around Hangzhou. In addition, the number of second-hand houses seen and traded has also continued to rise, and the listed prices of many properties have slightly increased.

   The performance of land auction market is "calm"

According to the land auction information, there are 4 land plots distributed in Xingqiao, Xiasha Dongdongwan New Town, Yinhu and Lushan, all of which are low-density plots. The land area transferred is 267000 square meters, and the total aboveground building area transferred is 356000 square meters. In the end, the four plots were all sold at the base price. Hangzhou received 3.89 billion yuan in a single day, and the average price of the sold floor was 10924 yuan/square meter. Land acquisition real estate enterprises include the Construction Development and Dongdong Bay New Town Development and Construction Consortium, Baoyi and Linping Qiaosi International Trade City Construction Consortium, Shanshui Real Estate and Jinhui Century.

"Although Hangzhou's new policy on May 9 fully lifted purchase restrictions, this batch of plots has been announced before the new policy, and the plot itself is remote, which has little relevance to the policy." The Executive Deputy Chief Senior Fellow of the East China Region of the Chinese Academy of Sciences believes that the current round of local auction continues to be in the low trend of anticipation. According to the data of China Index Research Institute, three plots in this batch have a floor area ratio of less than 1.5, two have river scenery resources, and two are within 500 meters from the subway entrance. The quality of the plots is acceptable, but they are all located in the suburban and outer suburban sectors. Recently, the opening of projects in the sector has generally fluctuated, and the market flow rate is slow.

"Rationality and restraint" is the main theme of the local auction market this year. In the opinion of insiders, despite the continuous optimization of real estate policies, real estate enterprises will remain cautious about the land auction market until the supply and demand relationship and market expectations are restored to health. "Even the Shanghai market has experienced a serious split between February and August, and the removal of new houses in Hangzhou's previous hot sector is not optimistic, so now our land acquisition strategy is to wait for opportunities without selling," said another local real estate enterprise investment principal.

In the last six months, Hangzhou has optimized the property market policy three times, and the land market is relatively calm. In the second batch of transfer at the end of March, two of the five homesteads were auctioned off, two were sold at the bottom price, and one sold at a premium of 23.6%. In the middle of April, the third batch of 8 plots were sold, 7 were sold at the bottom price, and 1 was sold at a premium of 1.8%. At the end of April, the fourth batch of listed land was 5. Due to the relatively more core location, the heat rose, but the differentiation was significant. Among them, 2 cases had a premium rate of more than 13%, 1 case had a low premium of 0.7%, 1 case had a bottom price, and 1 case had terminated the transfer in advance.

In the case of limited capacity for new housing, real estate enterprises will pay more attention to the deconstruction expectation and profit space of the transferred plots. Senior college students believe that the new policy of Hangzhou's property market proposes "optimizing the land supply mode and promoting the balance of supply and demand for regions with large housing supply and slow pace of de transformation". In combination with the delay in announcement of the sixth batch of land, it does not rule out that the subsequent accurate land supply or optimization of the land supply structure will increase the confidence and participation of enterprises in land acquisition.

It is worth noting that Jianfa became the only head real estate enterprise present in this auction. According to incomplete statistics, this is the fifth homestead that Jianfa has won in Hangzhou this year after Taoyuan, Zhijiang, West Railway Station and Future Science and Technology City, with a total amount of 18.46 billion yuan.

   The property market is bustling

On the other side of the calm of the land auction market, the Hangzhou property market under the influence of the New Deal shows a certain degree of warmth. The reporter recently conducted a field survey on the property market in Hangzhou, and many new houses have seen a big recovery in sales and transactions. In addition to the local demand group in Hangzhou, there are also many buyers from the surrounding areas of Hangzhou. The number of second-hand houses and the volume of transactions have also continued to rise, and the listing prices of many popular areas have also slightly increased.

"After the deregulation of purchase restrictions, the number of people who really want to buy houses has increased significantly. The number of visitors to the sales office has more than doubled. Yesterday, there were 20 groups of house visitors in the working day, and some non local owners directly transferred their money without arriving at the scene." On May 14, Binjiang Group Xiyingtinglu Real Estate Consultant told the reporter that in addition to individual customers, the new policy liberalization has also attracted many foreign customers. Recently, they have also received many foreign customers from Yiwu and other places.

The Chen'an Moon Printing Project of the Canal New Town in Gongshu District of Hangzhou also welcomed a large number of tenants. "The project is planned to open on May 16, with 141 sets to be opened for the first time. Judging from the current registration situation, lottery has become inevitable. On the first day of May 10, more than 900 people accepted registration, and by 3 p.m. on May 11, the number of registered people had reached more than 1300." Chen An Yinyue Real Estate Consultant told reporters. In the evening of the same day, the number of registered people of Chen'an Moon Printing Project was announced two days ago, exceeding 2000.

 Photographed by Yang Ye, Xiyingting Lu Sales Office Photographed by Yang Ye, Xiyingting Lu Sales Office

Mr. Hong, who recently participated in the lottery of new houses, told reporters that he would still focus on new buildings with better location and quality, and would not consider second-hand houses for the time being. "After all, second-hand house transactions need expensive taxes."

Industry insiders believe that although the real estate market has become lively in the short term, the transaction price has not risen. The long-term impact of the new policies on the property market in Hangzhou needs to wait and see.

The recovery of second-hand housing market trading volume is mainly concentrated in school district housing. When visiting many intermediaries in the West Lake District, the reporter learned that after the complete liberalization of purchase restrictions, many buyers in the surrounding areas were attracted, and both the number of house visits and the transaction volume grew rapidly. "The main urban area of Hangzhou has better educational resources. Before the New Deal, many people in Zhejiang prefecture level cities could not settle down in Hangzhou for various reasons, so they could not enjoy the better educational resources in Hangzhou. Now they can give priority to applying for settlement when buying houses, which is bound to stimulate this demand," an intermediary in Xihu District told reporters.

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Editor in charge: Wang Han

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