Since the beginning of this year, China's real estate market has entered a cycle of adjustment, and the trend of housing prices has begun to appear, which coincides with Li Ka-shing's prediction to the market many years ago. For families with "two suites", there will be three outcomes in the future: housing prices continue to rise, houses cannot be sold, and the pressure to hold houses continues to rise. This article will delve into these three outcomes and analyze what this means for these families.
First-tier cities, which are known for their soaring housing prices, have also begun to see the phenomenon of housing prices**. Taking Shanghai as an example, the old housing prices in the central urban area have increased from more than 100,000 square meters in the past to 60,000-70,000 square meters now. This shows that the bigger the housing bubble, the greater the risk of bursting, whether it is a large city or a small or medium-sized city. And those families who hold two suites will face the distress of continuous housing prices and shrinking assets in the future.
In addition, with the intensification of the regulation and control of the property market, as well as the gradual implementation of the control policy, the trend of housing prices may intensify. This will increase the financial pressure on families with two homes, which can lead to negative equity.
In the face of housing prices, many owners who hold two houses will choose to sell their houses to avoid property losses. However, the number of listings in the second-hand housing market has increased significantly, and the competition has become more and more fierce. Especially after the implementation of the policy of "recognising houses but not loans" in first-tier cities, the number of second-hand housing listings has shown a surge. According to statistics, the number of second-hand houses listed in Beijing has exceeded 150,000 units, and the number of second-hand houses listed in Shanghai has reached more than 180,000 units.
At the same time, due to the impact of the epidemic, many people's incomes have decreased, the demand for housing has decreased, and the number of people buying commercial housing has decreased. This means that those who own two homes will face more selling pressure as the market demand is weak and the frustration of not being able to sell their homes will deepen.
For families with two or more homes, after nearly three years of the impact of the epidemic, there are more cases of reduced income or unemployment, and the pressure of loan repayment has increased. At the same time, households with two or more homes will need to bear more expenses each month, including property fees, heating costs, maintenance**, etc. These costs are incurred every year**, placing an additional burden on the family's finances.
In addition, the pressure to hold a house will continue for many years. As the real estate market continues to deepen, the possibility of housing prices** is gradually increasing, and families with two homes will be more under financial pressure and burden.
Li Ka-shing's prediction has come true, China's real estate market has entered a correction cycle, and housing prices** mean three outcomes for families with two homes: housing prices continue to rise**, houses cannot be sold, and pressure to hold houses is rising. These results have caused great distress and challenges for these families. Therefore, it is important for home buyers to think carefully when choosing to buy multiple properties, and avoid over-borrowing and over-investing to reduce the risks and burdens caused by future uncertainty. At the same time, it is also necessary to increase the regulation and control of the real estate market and guide the market to return to rationality and stability. Only through rational regulation and control and the operation of market-oriented mechanisms can the real estate market develop healthily and ensure the stability and virtuous cycle of the real estate market.