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The difficulty of Bazhou: the prosperity of new industries is low, and the land income has dropped by more than 70%.

author:China Real Estate News
The difficulty of Bazhou: the prosperity of new industries is low, and the land income has dropped by more than 70%.

Bazhou one is a project under construction. Tian Aoyun /Photo

After the "three chaos" incident, it showed the calm of the past, but the problems such as enhancing industrial prosperity and increasing fiscal revenue are still the "top priority" that the government needs to solve.

Reporting by Tian Aoyun/Hebei Bazhou

A circular issued by the Supervision Office of the General Office of the State Council on December 17, 2021 pushed Bazhou City, Hebei Province, to the forefront, and its large-scale large-scale arbitrary collection, fines and apportionment have aroused continuous concern.

According to the circular, according to incomplete statistics, from October 1 to December 6, 2021, the income from 15 townships (streets and development zones) in Bazhou City from warehousing and non-storage was 67.1837 million yuan, which was 11 times the income from fines and forfeitures from January to September, involving 2547 enterprises and individual industrial and commercial households, with an average fine and fee of 26,400 yuan per each household.

Judging from the report of the State Office Inspection Office, this situation is caused by the financial constraints of the Bazhou Municipal Government.

A person who has long studied the regional economy of Beijing, Tianjin and Hebei said, "The overall withdrawal of the steel industry in Bazhou in 2017, and the production lines of two large state-owned steel plants that contributed higher taxes to the local area have been shut down one after another, reducing taxes by nearly 1 billion yuan." Although there are still many small family-run workshops such as furniture and manufacturing, these private enterprises have contributed little to the ability to increase tax revenue. ”

The steel industry has previously been the main body of Bazhou's industrial structure, after withdrawing from steel production capacity, Bazhou began to carry out industrial transformation, such as the construction of a leisure food industry base, but the development of food industry clusters has not brought a strong source of tax revenue to the local government. Data show that in 2018, the output value of Bazhou's food industry was 3.15 billion yuan, and the tax revenue was 320 million yuan.

"In addition to the steel industry, the main source of tax revenue in Bazhou is real estate, but with the implementation of purchase restrictions in the cities around Beijing, housing prices have quickly extinguished, and local land finance and real estate-related taxes are naturally not better." The above-mentioned person told reporters.

Wind data shows that since 2015, the local transaction price in Bazhou has risen rapidly from 528 yuan / square meter unit price, and by 2017, the transaction price has reached 1491 yuan / square meter, and the total land transaction price has increased from 1.61 billion yuan per year to 4.86 billion yuan. However, 2017 was a watershed, restricted purchase policy impact, after a few years bazhou land market continued to decline, by 2021 the transaction price of 803 yuan / square meter, the annual land sales income is only 1.27 billion yuan.

Under the superposition of related factors, the finances of Bazhou are tight, and some chaotic phenomena have begun to appear.

At the beginning of January 2022, the reporter came to Bazhou, and after the "three chaos" incident, it showed the calm of the past, but the problems such as enhancing the industrial prosperity and increasing fiscal revenue are still the "top priority" that the government needs to solve.

Steel big city "go to steel" after

Bazhou, located in the center of the Beijing-Tianjin-Bao triangle, was once one of the important steel bases in Hebei.

Bazhou once relied heavily on the steel industry, except for two large steel plants in Bazhou City, Xinli Iron and Steel and Hebei Qianjin Iron and Steel, in Shengfang Town, Bazhou City, almost every household operated a processing plant for steel and related industries.

In the interview, the above-mentioned person who studied the regional economy of Beijing, Tianjin and Hebei said that Bazhou's private economy is very developed. "For example, in 2010, Shengfang had more than 1,800 furniture enterprises, accounting for 65% of the domestic output of similar furniture, exports accounted for one-third, with total sales of more than 8 billion yuan, and led to the formation of three major industrial clusters of metal processing, glass processing and wood processing."

Data show that in 2010, the economic structure of Bazhou's secondary industry was dominated by the private economy, of which more than 27,000 private enterprises created 85.3% of fiscal and tax revenue and 85% of farmers' income for Bazhou, provided 86.7% of project investment and 86.2% of non-agricultural jobs, and was the pillar and backbone of Bazhou's economic structure.

However, with the increasing energy consumption and environmental pollution, the former steel city embarked on the road of "going to steel". In 2013, Hebei Province began to eliminate backward excess capacity, heavy-handed elimination of steel and other production capacity, and by 2017, Bazhou City withdrew all steel production capacity.

After withdrawing from steel production capacity, Bazhou began to carry out industrial transformation, such as building a leisure food industry base. In recent years, Dali Food, Daoxiangcun, Haidilao, Xiaoxian Stewed Bird's Nest and other well-known food enterprises at home and abroad have landed in Bazhou.

But the development of the food industry cluster has neither brought a strong source of tax revenue to the local government, nor has it immediately brought enough population and jobs to Bazhou. Data show that in 2018, the output value of Bazhou's food industry was 3.15 billion yuan, and the tax revenue was 320 million yuan.

"Where will the factory in the industrial park want me?" It's hard for those of us who are slightly older to find a job again. Younger people may want to go to other cities to see opportunities. Wang Ming, a taxi driver who has worked in a steel factory for more than 20 years, started a taxi after losing his job, "Make some pocket money, everyone is like this." ”

"If it weren't for our family having business here, I wouldn't be back." Liang Chao told reporters that many friends who grew up together did not come back to work for civil servants after graduating from college, and the rest went to work elsewhere. "There are relatively few jobs here."

Market chills spread

The difficulty of Bazhou: the prosperity of new industries is low, and the land income has dropped by more than 70%.

Although the introduction of emerging industries did not immediately bring too much population and employment to Bazhou, nor did it achieve the desired fiscal revenue increase effect, with the double dividends of Beijing-Tianjin-Hebei integration and Xiong'an New Area, in the real estate field, Bazhou has become the second batch of star cities around Beijing, and familiar housing enterprises such as Country Garden, Huaxia Happiness, Rongsheng Development, Vanke, Kaisa, hopson Chuangzhan and so on are competing to seize the Bazhou market, especially Huaxia Happiness. This makes "de-steel" after the real estate become a new source of financial revenue for Bazhou.

Like many cities around Beijing, with the influx of housing enterprises, the centralized supply of residential projects, the rapid heating up of the real estate market, the long queue of project cases, the frequent appearance of "daily discs", and the highest house price was speculated to 20,000 yuan / square meter.

The popularity of the property market quickly spread to the land market. Since 2015, the local transaction price in Bazhou has risen rapidly from a unit price of 528 yuan / square meter, and by 2017, the transaction price has reached 1491 yuan / square meter, and the total land transaction price has also increased from 1.61 billion yuan per year to 4.86 billion yuan.

The turning point appeared in June 2017, a paper purchase restriction order made Bazhou house prices take a sharp turn, with the north drift and investors who want to settle here and investors leave, the local property market was once deserted, and by December 2017, the house price had fallen to about 9,000 yuan / square meter, and the property market had dropped the virtual fire.

From December 29 to 30, 2021, a reporter from China Real Estate News found in a survey of some real estate in Bazhou City that due to the lack of population support, the real estate market continued to decline, and the price reduction of housing enterprises was almost a common phenomenon.

"When the market is the best, buying a house depends on robbery, customers don't have time to look carefully, and many times even in order to buy a house, in addition to stuffing me with red envelopes, unlike now, few people look at the house at the end of the day." In a sales office in Bazhou City, Lin Yu, a sales supervisor who has been selling houses for many years, sat on the sofa and recalled the grand situation around 2016, in addition to the increase in the volume and price of the property market, sincerity gold and indicator fees are also common.

Under the purchase restriction, the once grand scene has long ceased to exist, replaced by a number of empty sales offices for sale projects, few buyers, and the sales are dismal and slow.

According to the data of Shell New House Langfang Station, 243 sets of new houses were sold in Bazhou in December 2021, with an average sales price of 7780 yuan / square meter.

However, the reporter noticed in the field visit that the actual sales price of 6000-7000 yuan / square meter of the project is not a minority, these projects are mostly concentrated in the Bazhou Development Zone, from the Bazhou North Railway Station only ten minutes to drive, the main customer group from Beijing and Xiong'an investment or property buyers.

In a community in the development zone that has been handed over, the reporter noticed that less than one-third of the houses in a building have been renovated, and the remaining houses are still in a rough state. Zhao Qian, a salesman for the project, said, "The occupancy rate of the development zone is not high, and the project now has a small number of tail plates. ”

In addition, the area with Bazhou city as the core is also distributed nearly a number of real estate for sale. According to reports, most of this area is bought by Bazhou locals, and the average price of new houses is about 8,000 yuan / square meter.

"Now the whole of Bazhou can sell about 10 suites a day, and the sales of 'Golden Nine Silver Ten' are slightly better, and there can be about 40 sets a day." Lin Yu helplessly told reporters that even if the experienced sales were only one or two suites a month. "The purchase restriction policy superimposed on the epidemic, and the number of foreign customers who buy houses in the past two years has been much less."

Like many cities around Beijing, since the implementation of the purchase restriction policy in 2017, the source of investment or property buyers from Beijing has begun to decrease, sales are difficult, and the real estate market is cold. There have also been many news of the relaxation of purchase restrictions here, but they have not been officially confirmed.

"In fact, there are countermeasures under the policy." Lin Yu told reporters that it is already an open secret to buy a house here through the introduction of talents, "in the early two years, they also need to pay us an additional fee of about 50,000 yuan, and in the past two years, with the seriousness of the epidemic, many Beijing customers have tried to minimize going out because of the troublesome procedures for entering and leaving Beijing." From 2020 onwards, these additional fees will no longer be charged for the sake of Taoke. ”

Lin Yu's statement was also confirmed again in other projects visited by reporters. A number of salespeople stressed, "These businesses are public-to-business, and individuals cannot handle them." ”

Housing enterprises have zero down payment for self-help

However, in the eyes of some locals, this time may be the time to read the bottom.

"Now it may be the end, although the market sales are not good in recent years, but the price has not changed much." Liu Yue is a native of Bazhou "post-80s", two months ago he began to look at the house with friends, thinking about buying a suite in the city, "Now many projects have promotions, buy a house to send a parking space." ”

"We look at houses in the city, so they won't sit idle even if they don't live." Liu Yue told reporters that because many people from nearby townships come to Bazhou city to work or go to school, the rental market is good, "I have two suites are rented abroad, after buying it, it is simple to decorate according to the style that young people like now, hang out for less than two days to rent out, and can rent more than a thousand yuan a month." ”

"If you live by yourself, you can also look at the houses in the city, although it is expensive, the occupancy rate is high, and the community and surrounding facilities are also perfect." Liu Yue said that although the houses in the development zone are cheap, due to the extremely low occupancy rate in actual residence, some communities have not even given owners access to central heating in the winter.

Liu Yue's claim was confirmed when the reporter visited the project in the development zone. During the visit, some sales staff told reporters that in order to ensure winter heating after handing over the house, the owner can also change to natural gas for heating.

Liang Chao, who returned home to help with business after graduating from college, was also recently looking at the wedding house, and he told reporters that the house prices in previous years made him prohibitive.

"It's crazy!" In Liang Chao's view, "In the past few years, too many people have come here to buy houses and invest, and house prices have been speculated so high, and it is really the most difficult for local just needs." In the past two years, house prices have begun to fall, and we have only begun to see if there is a suitable house. ”

Despite the continuous marketing methods and the return of some customers to the market, most buyers are still in a wait-and-see attitude.

In the face of the relatively sluggish property market, in order to stimulate the market to launch a number of projects to buy a house "zero down payment" activity. Zhao Qian told reporters that if the down payment is not enough, now only need to pay 10,000 yuan to buy a house, the remaining house payment can handle up to 30 years of commercial loans, the loan interest rate is 5.6%. In addition, after the purchase of the house, tens of thousands of yuan will be returned. "Now housing companies are in a hurry to sell houses to collect money, almost all of them are doing promotions, hoping to solve the sales problem."

Housing enterprises are cautious about taking land

The difficulty of Bazhou: the prosperity of new industries is low, and the land income has dropped by more than 70%.

In Bazhou's first-hand housing community, the vast majority of houses are still rough. Tian Aoyun /Photo

The colding of the real estate market has directly led to housing enterprises beginning to be "not cold" to soil auctions, the land market is sluggish, and the phenomenon of streaming auctions is frequent.

A relevant person from a local housing enterprise who did not want to be named told reporters that the land price is expected to be higher now, and the risk is greater after taking the land. He said that the downturn in the property market may be a more important reason for housing enterprises to wait and see. "In recent years, the market supply has intensified, but the new market has not been sold, the liquidity of second-hand houses has stagnated, the market is very cold, and the developer's desire to get land is very low."

A national housing enterprise in North China said that now the payment collection is slowing down, financing is tightening, from the perspective of housing enterprise layout, they pay more attention to some safer cities, "now is not the time to need rapid growth in scale." The investment source also said, "Now the profit of bidding, auctioning and listing is getting lower and lower, and we are also strengthening other ways to get land such as old reform and land hooking, which is also the practice of some other housing enterprises." ”

Meng Xianguo, director of the Bazhou Municipal Finance Bureau, mentioned in the budget implementation report of Bazhou City in the first half of 2021 that the main reason for the sharp reduction in government fund revenue in the first half of the year was that the land market was always in a downturn due to the impact of the real estate purchase restriction policy in the first half of the year, most enterprises were not enthusiastic about taking land, and the phenomenon of flow auctions caused by financial difficulties increased by enterprises affected by the epidemic, which directly led to a sharp decline in land transfer.

Wind data shows that since 2018, the land transaction price and actual transaction volume of Bazhou City have declined all the way, and by the end of 2021, Bazhou City will supply a total of 90 plots of land in 2021, with 47 transactions, with a flow rate of about 47.8%, and the transaction volume will decrease by 29.85% year-on-year, of which the transaction floor price is 803 yuan / square meter, and the total transaction price is 1.27 billion yuan. In 2017, the total land transaction price for the whole year was 4.86 billion yuan.

According to the Bazhou Municipal Government Information Disclosure Platform, the Bazhou Municipal Finance Bureau announced the adjustment of the fiscal revenue and expenditure budget twice on September 1 and December 24, 2021. In the 2021 fiscal revenue and expenditure budget adjustment plan of Bazhou City announced on September 1, 2021, the general public budget expenditure budget of Bazhou City is planned to be adjusted from 7.95 billion yuan at the beginning of the year to 6.15 billion yuan.

In the plan, the Bazhou Municipal Finance Bureau proposed several measures to ensure the balance of revenue and expenditure budgets throughout the year, including: accelerating the organization of land transfer and strengthening tax collection and management; and in terms of accelerating non-tax collection, it proposed to "step up research and revise the city's sewage and garbage collection management methods".

It is worth noting that it is not only Bazhou City that is affected. The property market in Gu'an, Xianghe, Dachang, Yanjiao and other cities around Beijing has declined all the way; under the dismal real estate market in The central Beijing real estate market, the life of a number of key layout housing enterprises in Beijing is not good. "Now life is more difficult, the project does not have the heart to think of other things, are busy selling the house to pay back." A layout of the Beijing housing enterprise personnel said.

(The sales and buyers in this article are pseudonyms)

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