According to Kerry data, the average price of new residential buildings in Simao District of Pu'er City last year has reached 7941 yuan / square meter, exceeding the 7470 yuan / square meter of Jinghong City in Xishuangbanna. Before last year, the house price of Jinghong has been higher than that of Simao District, of which the average price of new houses in Jinghong in 2018 was the highest tens of thousands, and the house price of Simao District was only more than 6,000 in the same period.
This year, the trend of Pu'er house prices exceeding Banna is still further strengthening, and the average residential price in Simao District in January and February is higher than that in Jinghong City, of which the average price of new houses in Simao District reached 7809 yuan in February, while Jinghong was only 6297 yuan, and the gap was pulled to more than 1500 yuan per square meter.
The average transaction price of commercial housing in 3 prefectures and cities in southwest Yunnan in 2021 (data source: Kerui)
However, Jinghong's house prices still have a further downward trend, such as the development of a large-scale Sunac International Tourism Resort, and the hardcover houses promoted some time ago are only sold for more than 5,000 square meters.
The main reason for the continuous decline in banna housing prices is that the scale of real estate development is too large, but the demand for local housing is limited, and the flow of foreign customers has been greatly reduced in the past two years, resulting in a serious oversupply of commercial housing.
Xishuangbanna Sunac International Tourism Resort
Banna's real estate development is mainly concentrated in Jinghong City, in 2020, the peak of real estate development investment, Jinghong City completed real estate investment of 14.19 billion yuan, housing construction area reached a staggering 12.2787 million square meters (including 8.76 million square meters of residential).
How exaggerated is this number? It should be known that the housing construction area in Wuhua District of Kunming City in the past few years is about 14 million square meters.
It can also be compared that in 2020, the real estate development investment in Simao District of Pu'er City was only 4.4 billion yuan, only 28% of Jinghong; the annual housing construction area was 4.2875 million square meters (including 2.8185 million square meters of residential), which was only slightly stronger than one-third of Jinghong City.
Banna's real estate development scale is so large, but the local demand is very limited, because Xishuangbanna Prefecture has only 3 administrative districts (two counties and one city), the population is relatively small, according to the results of the seventh census, Banna Prefecture's permanent population is only 1.3 million people, ranking fourth from the bottom in the province. After the population of Jinghong City has grown sharply in recent years, there are only more than 600,000 people.
Since the population of Xishuangbanna Prefecture and Jinghong City is relatively small, and the real estate development scale of Jinghong is very large, the local real estate projects are basically exported, and the purchase of houses and vacations and investment by foreigners is the most important demand for housing in Banna. However, since the beginning of the year, due to a series of factors such as the epidemic, economic downturn, and real estate tax getting closer, the number of foreigners coming to Banna to buy houses has declined off a cliff, resulting in a continuous decline in house prices in Banna, especially in Jinghong City, and has now reached the lowest point since 2018.
Foreigners who buy houses in Banna are mainly from the north, Sichuan and Chongqing, among which the proportion of northeasterners is the highest.
A tourist motorhome from the northeast, parked on the streets of Jinghong
Most of Pu'er City, like Banna, is located south of the Tropic of Cancer, the climate is close, although Pu'er also has tourism real estate development, but the local real estate market is still dominated by local demand.
Pu'er has a permanent population of 2.4 million, almost twice that of Banna. Pu'er has jurisdiction over 1 district and 9 counties, with a total GDP of 102.915 billion yuan in 2021, and the local market size is relatively large. Although the permanent population of Simao District is not much, only 416,000 people, 230,000 fewer than Jinghong City, but many people in the 9 counties under the jurisdiction of Pu'er have settled in Simao District, which has supported the continuous rise in housing prices in Simao District in recent years. In addition, Pu'er has a warm climate and a good natural environment, and in previous years, house prices have been lower than Banna, and in recent years, they have gradually begun to attract vacation customers from outside the province. However, as housing prices in Pu'er city surpass Banna, and the gap gradually widens, the source of sojourners may shift to Banna with lower housing prices and a warmer climate.