Dongguan, as one of the important cities in Guangdong Province, used to be a hot spot in the real estate market, attracting the attention of many investors and home buyers. However, in recent years, the property market in Dongguan has seen a significant decline, with housing prices continuing to decline and transaction volume continuing to be sluggish, which has made many homeowners miserable.
Recently, a story of a Dongguan homeowner buying a house has aroused the attention of netizens. It is reported that in November 2020, the homeowner bought a 96-square-meter house in a community in Dongguan for 6 million. At that time, he grabbed the house with the most **, thinking that he could make a fortune on this house, but he didn't expect it to become a hot potato.
Due to the impact of multiple factors such as the epidemic, regulation and control, and economic downturn, the Dongguan property market has entered a cold winter since 2021, with housing prices falling all the way and the buyer market becoming the mainstream. The homeowner realized that the house he bought was becoming less and less valuable, so he decided to hurry up and not continue to lose money. However, he found that his house could not be sold at all, and even if the price was reduced to 2.8 million, no one cared.
The homeowner felt very helpless, he said that he bought the house with a loan, and he had to repay nearly 30,000 yuan a month, and his salary was only more than 10,000 yuan, so he could not afford to repay the loan. He has not repaid the monthly payment for half a year, and a few days ago, the bank called ** to collect the money, telling him that if he does not repay the loan, he will go to court and apply for the auction of his house, and if the auction proceeds are not enough to pay off the loan, he will be held accountable for his other properties. He said that he has no choice but to cut off the payment and wait for the bank to collect the house.
The homeowner's experience sparked heated discussions among netizens, some sympathized with his experience and thought that he was a victim of the real estate market, some criticized his speculative psychology, thinking that he was self-inflicted, some analyzed his mistake in buying a house, thought that he did not do a good job of risk assessment, and some reminded him of the legal risks, thinking that his interruption would have serious consequences.
So, why does the Dongguan property market have a big dive in housing prices?According to the analysis of industry insiders, there are mainly the following reasons:
First, there is an imbalance between supply and demand. As a manufacturing-based city, Dongguan's economic growth rate has slowed down, population inflow has decreased, and the demand for housing is not strong. In the past few years, Dongguan's real estate development has been too enthusiastic, and a large number of ** have poured into the market, resulting in oversupply and downward pressure on housing prices.
The second is policy tightening. In order to curb the excessively fast housing prices and prevent asset bubbles, Dongguan has implemented a series of regulatory measures since 2017, including purchase restrictions, loan restrictions, price restrictions, sales restrictions, etc., which restricts the funds and qualifications of home buyers, inhibits investors' enthusiasm for speculation, and reduces the trading activity of the market.
Third, market expectations have changed. With the increase in housing prices, the confidence of the market has been hit, and the wait-and-see mood of home buyers has increased, and they are worried that the house will continue to fall after buying a house, and they are unwilling to sell. And the anxiety of the seller is increasing, worrying that the house will not sell, and the loss is getting bigger and bigger, and they are eager to sell. This creates a vicious circle, with house prices falling faster and faster.
Fourth, the impact of the epidemic. The new crown pneumonia epidemic has had a huge impact on the global economy, and Dongguan, as an export-oriented city, has been particularly affected. The epidemic has led to a decline in Dongguan's exports, consumption, investment and other fields, with economic growth slowing down, residents' incomes decreasing, and their ability to buy houses declining. At the same time, the epidemic has also affected the normal operation of the real estate market, restricting the flow of people, and reducing the transaction volume and transaction efficiency of the market.
To sum up, the housing prices of Dongguan's property market are the result of the combined effect of multiple factors, reflecting some problems and challenges in Dongguan's economy and society. For Dongguan's **, developers, home buyers, homeowners and other parties, they need to face up to this reality, actively respond to it, and seek solutions.