Recently, leading real estate companies Poly and Vanke have taken the lead in cutting prices sharply, which has attracted widespread attention. What is the reason for their price cuts, and how will such large price cuts affect the trend of China's property market?
First of all, the reasons for the sharp price reduction of real estate companies can be analyzed from three aspects. First of all, since the beginning of this year, the sales performance of domestic real estate companies has generally declined, facing the pressure of inventory backlog and return of funds. The data shows that from January to October this year, the sales area of commercial housing fell by 22 year-on-year3%。In order to recoup funds as soon as possible, leading real estate companies choose to cut prices sharply to attract buyers. Secondly, after experiencing the dismal sales after the "Golden Nine and Silver Ten", real estate companies hope to boost their performance through price reductions at the end of the year. Finally, significant price reductions can attract more potential home buyers to the market and increase market share.
Secondly, the sharp price reduction of real estate companies** will have three major impacts. First of all, the price reduction behavior of leading real estate companies will trigger other real estate companies to follow up, and then promote some people who have the need to buy houses to buy houses. This will help stabilize the real estate market and allow transaction volume to "stop falling and stabilize". Secondly, as leading real estate companies take the lead in cutting prices sharply, some places may release the "price limit order" to attract more buyers to enter the market. This will provide an opportunity for real estate companies to avoid the risk of bankruptcy and promote an increase in the number of improvement buyers. Finally, there will be a trend of reshuffling of real estate companies in the future. Those small and medium-sized real estate enterprises that are not strong in financial strength or unwilling to reduce prices** may face the risk of broken capital chain, acquisition, restructuring and even bankruptcy. Buyers who buy off-plan properties in these SMEs need to be cautious as the possibility of bankruptcy or restructuring is rising.
The sharp price reduction of real estate companies** has caused controversy from all walks of life. Proponents believe that a sharp price cut can solve the inventory problem of real estate companies and help them return funds as soon as possible. At the same time, for home buyers, the cost of buying a house after the price reduction is significantly reduced, which is beneficial to both parties. However, opponents argue that the sharp price cuts** of real estate companies will cause serious losses to old owners and disrupt the order of the real estate market.
First of all, the sharp price reduction of real estate companies** may become a daily normalization phenomenon and continue to promote the development of the property market. When more real estate companies sell their properties at significant price reductions, buyers will enjoy lower home purchase costs, which will lead to a steady increase in market transactions.
Secondly, the sharp price reduction may affect the regulation of the real estate market by the local government. As more and more leading real estate companies reduce prices, local governments may gradually release the "price limit order" to support the survival and development of real estate companies, thereby driving more buyers to enter the market.
Finally, the trend of the reshuffle of real estate companies will intensify. Those large real estate companies that are stronger and willing to reduce prices** will tide over the difficulties, while small and medium-sized real estate companies that are unwilling to reduce prices may face the risk of broken capital chains, acquisition and restructuring or bankruptcy. Buyers who buy off-plan properties of small and medium-sized real estate enterprises need to choose carefully to avoid possible risks.
The sharp price cuts of leading real estate companies Poly and Vanke have brought new changes to China's property market. Price reductions** will help stabilize the real estate market and increase the ability of homebuyers to buy a home. However, price reductions** also bring some controversy and risks, especially for small and medium-sized real estate companies and their home buyers. Therefore, buyers need to be cautious about market changes and choose reputable and stable real estate companies to buy properties to reduce risks. Real estate companies need to flexibly adjust their strategies according to market demand and competition to provide buyers with suitable products to achieve a win-win situation.