The big problem of the property market needs to be solved! 45 How do families deal with the four major challenges they face?
The year 2023 is a thing of the past, and last year the entire real estate market was in a state of constant adjustment. In December 2023, the average second-hand housing in 100 cities across the country was 15,315 yuan square meters, 055% for 20 months**. At the same time, the year-on-year decline in second-hand housing** in 100 cities exceeded that of 90 cities for seven consecutive months. Industry experts**, the general trend of the property market has been set, and 2024 may continue the adjustment trend of last year.
However, there are also different voices that in addition to first-tier cities, second- and third-tier cities have also relaxed the purchase restriction policy, and the mortgage interest rate has been reduced to below 4%. In addition, in 2024, urban village renovation and affordable housing construction projects will be launched nationwide, which will promote the recovery of the real estate market. Although favorable policies help stabilize the market and guard against financial risks, the long-term adjustment trend is difficult to change.
We make such a judgment mainly based on the following factors: 1. The national property market has been seriously surplus, enough for 3 billion people to live; 2. The whole country has entered"Ageing and childless"society, the demand for housing is decreasing; 3. Affected by the epidemic, many people's income has decreased and their ability to buy houses has been impaired; 4. Landmines in real estate enterprises Mines in real estate enterprises are frequent, the quality of new houses is worrying, and the public confidence is insufficient.
Although the real estate market is set for 2024, for families with only 1 property, the house is meant to live in, and future market fluctuations will have limited impact. However, for families with 2 or more properties, future market volatility will present some challenges. These people may face the following 4 challenges:
i.Real estate market values are likely to continue to decline.
In previous years, China's real estate market has experienced rapid growth, and many people have poured into the property market with the intention of making a profit through property speculation. However, in the case of market surplus and weak demand for real estate, the market value of real estate is in danger of continuing.
Even in first-tier cities such as Beijing and Shanghai, housing prices have fallen slightly, not to mention third- and fourth-tier cities. Without the support of popular resources, real estate developers can only continue to cut prices to attract buyers, but this also means that the market value of real estate will continue to decline.
Second, the problem of difficult to sell houses.
Since 2023, this trend has become more obvious, and the number of second-hand housing advertisements in many cities has seen a significant **. According to the data, in December 2023, the number of second-hand housing listings in the 14 major cities monitored continued year-on-year and month-on-month**, with an annual increase of 9206%, with a month-on-month increase of 290%。
This is particularly true of the top five cities with year-on-year listings, such as Foshan, Shanghai, Dalian, Hangzhou and Suzhou. Even in big cities like Shanghai, it has become extremely difficult to cash out second-hand homes, and some owners have even had to cut prices significantly to attract buyers. And in some third- and fourth-tier cities, it is difficult to sell the property even if the price is reduced**.
iii.Housing costs continue to rise.
Although the current state mortgage interest rate has decreased, homeowners are facing a constant annual rate of property and heating costs. At the same time, the repeated impact of the epidemic and the slowdown of the real economy have reduced the income of many home buyers, resulting in increasing pressure on monthly payments.
It should not be overlooked that ** has announced that it will expand the scope of the property tax pilot in the future, which means that more cities will join the ranks of property tax collection. As a result, residents who own properties will face more burdens. In this case, families with multiple properties need to be prepared.
Fourth, the rental market is likely to shrink.
In the past, a large number of graduates from Beijing, Shanghai and Guangzhou formed a large group of tenants, who rented while working, giving rise to a group of landlords who did not work properly. However, with the recession of the real estate industry, this phenomenon is gradually changing.
Housing policies have been introduced in large cities to provide rental housing for fresh graduates and migrant workers through social security, thus solving the housing problem. At the same time, homeowners in third- and fourth-tier cities are finding it difficult to rent out their homes because of the outflow of people from these cities, which has reduced the demand for renting and made it more difficult to rent.
How can families with multiple properties address these four challenges?
1. Be cautious when buying a house: When buying a house, you should not blindly pursue appreciation space, but should choose according to your actual needs and economic ability.
2) Diversification: Families who have already bought a home should be mentally prepared for the market value of the property** and look for other ways to increase their wealth. Appropriate diversification can be considered to reduce dependence on the real estate market.
3) Improve rental conditions: When renting out your home, consider offering more attractive rental conditions to attract more tenants and stabilize rental income.
4. Control housing costs: When owning a property, try to control housing costs and avoid unnecessary expenses. You can choose a suitable property management company to manage the house and reduce expenses such as maintenance costs.
Flatly.