The source of this article: Times Finance Author: Liu Xinge
Image source: Visual China
Selling a house is harder, selling an apartment is even harder. In order to clear the inventory of the apartment, Kunming's housing enterprises really fought, and some projects gave a "cabbage price" of 2500 yuan / square meter, and the house price seemed to return to ten years ago.
On November 5, the "Employee In-house Purchase Policy" of a top 5 housing enterprise obtained by Times Finance showed that in order to ensure the rapid dematerialization of project commercial products in Kunming Chenggong District and achieve rapid withdrawal of funds, the company will carry out internal preferential promotions from November 5 to 7, with product types of soho and loft, with unit prices of 2500 yuan / square meter and 3300 yuan / square meter, respectively.
Compared with the market price, the internal promotional price can be described as a "fracture price". Fangtianxia data shows that the project is priced at 8,000 yuan / square meter. Times Finance called the sales office to learn that the products currently on sale are shops and commercial products, apartments are divided into two kinds of flat floors and lofts, with an area of 37-78 square meters, and the prices are about 5000 yuan / square meter and 6300 yuan / square meter, respectively.
However, according to the in-app purchase policy, employees are required to pay the full amount in one lump sum within two days from the date of subscription. It is reported that the personnel in the establishment of the housing enterprise can participate in the internal purchase, and each person can enjoy 5 places to buy a house. It is worth noting that non-staff personnel/interns/immediate family members, formal staff and immediate family members stationed by the shareholders of the cooperative project are all "personnel within the establishment" as described in the document.
The full payment requirement revealed the housing enterprise's thirst for funds, and the document also pointed out that the project's overall sales revenue in September decreased by 10.53 million yuan, from 473599 million yuan to 472546 million yuan; the overall profit margin also fell by 0.15%, from -10.84% to -10.99%.
In fact, in addition to the above-mentioned top 5 housing enterprise projects, the current Kunming apartment market as a whole is at a freezing point, and the apartments that are difficult to dematerialize have almost become the "hot potatoes" in the Kunming property market, and the price is even more plunging.
According to the latest data from Zhongyuan Housing, there are currently 47 apartment projects for sale in Kunming, as many as 14 in Guandu District, and 11 apartments for sale in Chenggong District, including Vanke, Poly, OCT, Helenburg and other developers.
In terms of price, last year, some loft apartments with better locations could even be sold for 16,000 yuan / square meter, and some projects were quoted nearly 20,000 yuan / square meter. This year, projects of more than 10,000 yuan have been very rare, of which the unit price of Chenggong apartment is about 8388 yuan / square meter, and the unit price of apartments in Guandu District is about 9454 yuan / square meter. However, Zhongyuan said that this is only the price advertised to the outside world, and the actual selling price of specific projects may be quite different from the average price. Zhongyuan Housing takes the above-mentioned project of implementing in-house purchase as an example, saying that its selling price is about 4500-5500 yuan / square meter.
Times Finance learned that a short video blogger in Kunming had previously bought more than a dozen apartments, and the monthly rent of each apartment was between 1050-1100 yuan. He said that buying apartment projects should consider the rental situation, and now it is more difficult to resell and realize, and it basically takes more than ten years to return the cost by leasing. "The biggest risk is that the project's similar products are too concentrated – there are more than 10,000 apartments in the whole project; in the future, if the market is depressed, the competition for rental will be close to 'you die and I live'."
According to industry analysts, the squeeze of the kunming apartment market today is mainly due to the oversupply in previous years. From 2013 to 2014, Kunming's commercial projects were supplied with a blowout, with an annual launch volume of millions of square meters, but the average annual dematerialization did not exceed 500,000 square meters. In order to facilitate sales, some office buildings were converted into apartments, resulting in a high inventory of apartments. From 2016 to 2020, Kunming's apartment stock continued to increase, especially in 2019, the apartment stock area increased from 1.11 million square meters in 2018 to 2.54 million square meters, more than doubling in one year.
In order to speed up the destocking of apartments, housing companies are doing their best. Recently, an existing apartment in Kunming Wujiaba District declared that "hydropower is charged according to the standard of hydropower for residents in Kunming". Commercial hydropower has always been the pain point of the apartment, and switching to civil water and electricity to reduce the cost of living is a trick for housing enterprises to accelerate dematerialization.
At the beginning of this year, in order to promote the sales of apartment products, Poly Skyrim of Kunming Wujiaba Free Trade Zone launched the "2nd set of half price" promotional policy. In addition, there are a number of apartment projects in Kunming that have launched marketing gimmicks with degrees and settlables.
However, in the face of a large amount of inventory, the road to de-industrialization of Kunming apartments is still long. Ruili data show that as of the first half of this year, the stock of commercial apartments in Kunming was about 4.4877 million square meters, and the deindustrialization cycle was about 55 months (more than 4 years).