Li Ka shing is right, and China s family with two suites may be destined for three outcomes

Mondo Social Updated on 2024-01-29

After entering March 2023, China's real estate market began to enter an adjustment cycle. According to the data, from January to November this year, the sales area of commercial housing in the country was about 121.2 billion square meters, down 233%, sales of about 1186 trillion yuan, down 266%。As of the end of November, the area of commercial housing for sale was about 55.2 billion square meters, a year-on-year increase of 100%。At the same time, the average price of the second-hand residential market in 100 key cities in November was 15,231 square meters, down 062%, an increase of 029 percentage points, down 286%。In this adjusted market environment, families with "two homes" face greater challenges and distress.

In the process of real estate market adjustment, housing prices continue to bring distress to families with "two suites". Many people have thought that even if the house price is **, the house price in the central area of the first-tier city will not be affected too much. However, in fact, housing prices in the central urban areas of first-tier cities are also **. In Shanghai, for example, in 2021, the housing prices in the central city rose to more than 100,000 square meters, but now they have fallen to 6-70,000 square meters. It can be seen that whether it is a large city or a small and medium-sized city, the bigger the housing price bubble, the greater the risk of being burst. For those families who own two homes, they will face a situation where housing prices will continue to shrink in the future, which will undoubtedly increase their financial pressure and distress.

With the price of the house**, many owners who own two homes will choose to sell one of the properties and stop the loss in time. However, the number of second-hand housing listings is increasing everywhere. 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 surged. At present, 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, and the demand for home purchases is also shrinking. As a result, families with two homes will face the problem of difficulty in monetizing their properties.

Many families with two or more homes have experienced a reduction in income or lost their jobs after three years of the pandemic, and are under huge pressure to repay their loans. At the same time, families with two homes also have to pay more each month. For example, property fees, heating costs, maintenance**, etc., these expenses are annual **. Even if the house is vacant, these fees cannot be waived. As a result, families with two homes will not only have to face the pressure of repaying their mortgage after their income decreases, but they will also have to bear higher expenses. Moreover, this pressure will continue for many years to come.

As early as 2018, Li Ka-shing foresaw the adjustment trend of China's real estate market, and pointed out that housing prices will face a major reshuffle in the future. Now, with the adjustment of the real estate market, families with "two suites" are facing problems such as continuous housing prices, difficult to realize houses and rising pressure to hold houses. These problems have brought great financial pressure and distress to families. For these families, the future is destined to face three outcomes: housing prices continue to shrink and assets continue to shrinkThe property is difficult to realize, and it is difficult to realize;The pressure on housing continues to rise, and the economic burden increases. Therefore, in today's real estate market, families who own two homes need to think carefully and deal with these issues, reasonably plan their assets and financial situation, and reduce risks to avoid possible difficulties in the future. At the same time, we should also take active measures to strengthen the supervision of the real estate market, stabilize market expectations, guide the healthy development of the market, and provide better environment and conditions for citizens to buy houses.

Related Pages