Can ＂insured price limit＂ stabilize the property market？ The industry thinks there is only one result.

　　Near the end of the year, many real estate projects started more discount promotion activities in order to withdraw funds as soon as possible, which triggered the dissatisfaction of some pre-purchase owners.

　　In this regard, the relevant government departments in different cities have given completely different responses, which are basically divided into two factions — —

　　Some government departments have recently stated that they will not interfere with the independent price adjustment of real estate, and some government departments in some cities still say that they will talk to real estate enterprises to avoid their price reduction behavior disrupting market order.

　　In fact, from the second half of 2021 to the first half of 2023, under the downward pressure of the property market, many real estate enterprises have tried to promote sales through price reduction, while many local governments will stabilize market prices through a paper "limit order".

　　An obvious change now is that the local government’s restrictions on the price reduction of new houses are being liberalized. Some experts told CBN that the "limit order" in some places has long been unbearable. In order to clear the warehouse and withdraw funds, housing enterprises will operate various names to secretly reduce prices and avoid the "limit order". The gradual cancellation of the "limit order" will help the market restore liquidity to a certain extent.

　　Two options

　　In the past month, new commercial housing in several hot cities began a new round of price reduction, which caused some owners’ dissatisfaction and complaints.

　　The First Financial Reporter saw at the "Hanshan Wenzhong" forum hosted by the Suzhou Municipal Government that some netizens complained recently that the price reduction rate of Poly Yunshang Streamer Project in Xiangcheng District of Suzhou was originally 20% off, and then it was directly reduced to 75% off, and the total price dropped from more than 2.2 million to 2.1 million yuan. "In less than two months, the price was reduced by 100,000 to 200,000 yuan." The netizen also questioned that there is such a large price reduction in the short term of the auction property, which may affect the delivery quality behind it.

　　Regarding this complaint, the Eighth Branch of Suzhou Xiangcheng District Market Supervision Administration responded: "The simple discount promotion behavior does not violate the relevant provisions of the People’s Republic of China (PRC) Price Law."

　　On the "Leadership Message Board" forum hosted by People’s Daily Online, there are many similar complaints.

　　Some netizens in Huizhou, Guangdong Province said on the "Leadership Message Board": "The developers of new houses in Daya Bay maliciously cut prices, and the market is completely chaotic, which will only be more unsalable." The netizen said that in the past, the price limit of new houses in Daya Bay should not exceed 10% on the basis of the filing price, and the discount on group purchase price should not be lower than 20%. However, many properties engaged in price competition, and the market showed a discount of 30% or even lower. "When the old owner bought a house, the interest rate was ridiculously high. The total interest was several hundred thousand yuan more than what he bought now. There was nowhere to complain, and the house had not been closed, and the house price lost several hundred thousand."

　　Regarding this netizen’s complaint, the Housing Management Bureau of Huizhou Daya Bay Economic and Technological Development Zone replied in November this year: "The problem of price reduction sales is a matter of independent market adjustment, which is determined by developers and enterprises according to the influence of market factors. Regarding preferential compensation and refund for check-out, we suggest that you can negotiate with the development enterprise according to the agreement signed by both parties. If negotiation fails, you can safeguard your legitimate rights and interests through legal channels. "

　　Judging from the above response, the attitude of the relevant departments in Xiangcheng District of Suzhou and Daya Bay Economic and Technological Development Zone of Huizhou is "returning the market to the market", and the government departments no longer interfere too much in the pricing of new houses.

　　However, other local government departments have different responses.

　　For example, on November 11th this year, a property buyer in Jiaxing, Zhejiang complained on People’s Daily Online’s "Leadership Message Board" that the local outstanding Xiuchen Huafu had drastically reduced its price, and the developer used the name of "Double Eleven" to significantly reduce the price and promote sales, and gave the buyer a huge discount of 200,000 yuan in cash by using internal employees to purchase their own houses and work to arrive at the house, which "seriously disrupted the new house market and harmed the interests of early buyers".

　　The Housing and Urban-Rural Development Bureau of Xiuzhou District, Jiaxing responded to this netizen, saying: Regarding this situation, our bureau has conducted an interview with the local government on the development enterprise, asking the enterprise to avoid the behavior that seriously disrupts the new house sales market, and at the same time, our bureau will further strengthen the quality and fund supervision of the project to ensure the normal project.

　　On November 22nd and 24th this year, many Chengdu residents reported on the online mass work platform in Sichuan Province that the price of the Poly COFCO Huguang Jinyun Project in the East New District of Chengdu was "maliciously reduced to disrupt the market", and the licensed price of the project was 15,000-17,000 yuan/square meter, but it was later sold at an average price of 9,000 yuan/square meter, with a drop of more than 40%.

　　The Management Committee of Chengdu East New District immediately responded that the Public Service Bureau of the district had verified the situation. The Huguang Jinyun project was suspected of disturbing the normal order of the real estate market due to excessive price fluctuations, and it was temporarily unable to apply for online signing and filing.

　　More than 20 cities have issued "limit orders"

　　Some cities began to relax the "limit" requirement for new houses, which is a new trend recently.

　　From the second half of 2021 to the first half of 2023, under the downward pressure of the property market, many properties tried to promote sales through price reduction, but they waited for a "limit order" from the local government.

　　According to incomplete statistics, at least 22 cities (or districts) including Heze, Shandong, Yueyang, Hunan, Kunming, Hebei, Tangshan, Shenyang, Liaoning, Jiangyin, Jiangsu and Zhuzhou, Hunan have issued relevant regulations, requiring new commercial housing not to be sold at a reduced price at will.

　　For example, in June 2022, many departments of Pingtan Comprehensive Experimental Zone in Fujian jointly issued the Notice on Further Standardizing the Order of Commercial Housing Sales Market in the Experimental Zone, which mentioned that when selling commercial housing, the actual sales price of real estate development enterprises should not exceed 15% of the filing price, and if it exceeds the prescribed range, it will not be filed for online signing.

　　In other cities, the limit of decline is even less, only 5% lower than the filing price. At the end of March, 2023, the Hefei Municipal People’s Government replied to the buyers in the "Leadership Message Board", saying: According to the Price Law, the Notice on Forwarding the Detailed Rules for the Implementation of the Provisions on Clearly Marking the Price of Commercial Housing in Anhui Province, and the General Office of Hefei Municipal Government’s Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market in Hefei, the price of commercial housing is regulated by the market, and the government price management department does not directly approve the price of commercial housing. Enterprises in accordance with the "one room, one price" for the record, according to the record price for publicity and external sales. The downward range of the actual sales price of commercial housing shall not exceed 5% of the filing price. If it exceeds 5%, it is necessary to re-apply for price change procedures through the "house price online filing system".

　　At that time, the Development and Reform Commission of Feixi County, Hefei ordered the company to suspend the sale at a reduced price, and it must re-apply for price change procedures before it can be listed for sale.

　　Suzhou, which has recently led the new trend of "relaxing the price limit of new houses", was punished for reducing the price of real estate just over half a year ago, which once triggered a heated discussion.

　　In May this year, two properties in Kunshan, Suzhou — — Mengzhiyue Garden Project and Shangbin Garden Project were punished by local government departments in Kunshan for "selling at a large price without authorization". The two projects were required to be rectified immediately, and the online sign was temporarily closed. "Bad behavior" was recorded in the annual credit file.

　　Expert: canceling the "limit order" is conducive to market liquidity.

　　“‘ Limit the decline ’ Or ‘ Insured price ’ This is a difficult multi-party game. " A senior person from a large real estate company in East China told the First Financial Reporter.

　　The source said that many real estate developers who have worked for a long time have experienced the cycle of real estate price increase. At that time, it was easy to sell houses, and customers would come to the door themselves. The marketing department also had to introduce various rules to screen customers. He believes that the real estate project will eventually come to the step of drastically reducing prices and promoting sales, which is bound to be a helpless move. "The project may have faced long-term unsalable sales, or the group may have difficulties in funds, and issued instructions to quickly destock and withdraw funds. This is the market difference and the effect of the superposition of problems in the capital chain of housing enterprises."

　　"Generally speaking, in a region, several projects on sale at the same time are competing products. In this market environment, it is possible for the first to cut prices to run first, attracting customers who are interested in buying houses in the region, and the remaining projects are very difficult to do. There is basically no market with no price reduction. If you follow the trend of price reduction, the market atmosphere will be worse and a vicious circle will occur." He said.

　　For some places, the price reduction of housing enterprises is no longer restricted. He believes that in the past, most local governments had the idea of "stabilizing housing prices and stabilizing land prices", so they will control the price of new houses to remain stable. However, if the "limit order" has been implemented for a long time, the market has not improved, and local governments will consider handing over prices to the market for regulation.

　　Regarding the relaxation of the price limit of new houses, a salesperson of a first-tier real estate enterprise in Suzhou told reporters: "The first ones that drastically cut prices are the ones that are just needed. Customers are very sensitive to prices, and the price reduction strategy is more effective for them. However, for improved real estate, the price is difficult to drop, and price reduction means lowering the standard, so the situation of quality real estate in this environment is rather embarrassing. "

　　The source said that as far as she knows, some housing enterprises are facing serious capital turnover problems by the end of the year, and there is no better way to inform subsidiaries to clear their positions and withdraw funds as soon as possible.

　　Lu Wenxi, a senior analyst of Zhongyuan Real Estate, believes that although many places have issued "limit orders" in the past, after a long time, everyone found that "limit orders" could not really control the price reduction behavior of housing enterprises. "For example, some local governments stipulate that the discount rate of real estate should not exceed 15% of the filing price. Although real estate enterprises claim not to discount in actual operation, there are many other names, such as sending property management fees for several years, sending parking spaces, and even sending gold and cash to real estate enterprises. In fact, the limit order has already been ‘ In name only ’ 。”

　　For many homeowners who have complained about the sharp price cuts of real estate enterprises, Lu Wenxi believes that buyers need to have the spirit of contract and be responsible for their own investment behavior.

　　"After buying a house, the owner found that the house price has fallen and asked the government not to let the developer reduce the price. This request is unreasonable. The local government’s protection of the rights and interests of buyers should be reflected in urging housing enterprises to ensure that the houses are delivered on time and in good quality, instead of going to ceiling price. " Lu Wenxi told the First Financial Reporter.

　　He believes that many local governments have liberalized the price of new houses in order to maintain the liquidity of the real estate market. "If we blindly limit the price reduction of real estate enterprises, the market will be completely illiquid and completely frozen, but it will bring more problems and contradictions. Therefore, at this stage, we should let the market play its price adjustment mechanism and let the transaction volume climb up, so that the real estate sales end can recover."