Recently, the market dynamics of high-rise residential buildings have attracted widespread attention and heated discussions in the society. There are ** reports that some developers of high-rise residential buildings do not hesitate to reduce prices sharply, and some are even lower than the cost price**, which makes some owners who have already moved in feel dissatisfied and disappointed.
A fan complained that the house he bought for 1.4 million can only be sold for 800,000 now, and no one wants to buy it. This situation has cast doubt on the market prospects of high-rise housing, and some people even believe that "high-rise housing is outdated".
So will high-rise residential buildings face elimination? Let's analyze it from the following aspects.
will not be eliminated, high-rise residential buildings are still an important part of the property market
First of all, let's be clear that high-rise housing is not a new concept, but a form of housing that has emerged with the needs of urbanization and population growth. The advantage of high-rise residential buildings is that it can save land resources, increase building density, increase residential population, alleviate urban congestion, and promote the improvement and development of urban functions.
High-rise residential buildings also contribute to the aesthetics and iconography of the city, showcasing the city's modernity and cosmopolitanism.
On a global scale, the development of high-rise housing has not stagnated, but has shown a trend of diversification and innovation. For example, the Burj Khalifa in Dubai is currently the tallest building in the world, with a height of 828 meters and a total of 163 floors, including residential, hotel, office, commercial and other functions. Another example is the Shard in London, which is the tallest building in Europe, with a height of 310 meters and a total of 95 floors, including residential, hotel, office, sightseeing and other functions. The design and construction of these high-rise residences reflect the pursuit and creation of human beings for space utilization and quality of life.
Therefore, high-rise residential buildings will not be eliminated, but will still be an important part of the property market, but they need to constantly adapt to the changes and needs of the market to enhance their competitiveness and attractiveness.
The reason why high-rise housing is unpopular is because of the surplus of residential buildings
Secondly, we need to analyze why high-rise residential buildings cannot be sold at a reduced price. This is mainly due to the fact that there is a surplus of the current residential market. According to the National Bureau of Statistics, by the end of 2023, the area of commercial housing for sale in the country was 5800 million square meters, a year-on-year increase of 73%。Of these, the area of residential buildings for sale is 4200 million square meters, a year-on-year increase of 86%。
This means that the current residential volume has exceeded the market demand, resulting in residential inventory pressure and residential inventory
In the case of a surplus of residential buildings, the competitiveness of high-rise residential buildings will be relatively reduced. This is because high-rise housing has some disadvantages that cannot be ignored compared to other types of housing.
For example, the construction cost of high-rise residential buildings is higher, and more materials and equipment such as steel bars, cement, and elevators are required, which leads to the high cost of high-rise residential buildings, which is not conducive to attracting low- and middle-income buyers. Another example is that high-rise housing has a low living comfort and needs to face more noise, wind, light, safety and other problems, which leads to the lower quality of high-rise housing, which is not conducive to attracting high-end buyers.
Therefore, the reason why high-rise housing is unpopular is because of the surplus of residential **, not because there is no value or market for high-rise housing itself.
People prefer low-density, high-quality housing
Finally, we would like to ask if people's needs and preferences for housing have changed. The answer is yes. With the progress of society and economic development, people's living standards and consumption concepts are constantly improving and changing. People are no longer satisfied with just owning a home, but are more concerned about the quality and environment of the home. People are more inclined to choose low-density, high-quality housing in pursuit of a healthier, more comfortable and natural lifestyle.
This change in demand and preference is also reflected in the data of the residential market. According to a report by the China Index Academy, in 2023, the average transaction price of commercial residential buildings in China will be 140,000 square meters, a year-on-year increase of **61%。
Among them, the average transaction price of low-density residential buildings (villas, bungalows, etc.) is 210,000 square meters, a year-on-year increase of **95%；The average transaction price of high-density residential buildings (high-rise, small high-rise, etc.) is 130,000 square meters, a year-on-year increase of **54%。This shows that the increase and demand for low-density housing are higher than those of high-density housing, reflecting people's preference and pursuit of low-density housing.
Therefore, people are more inclined to low-density, high-quality housing, which is also the market trend and consumer demand that high-rise housing needs to face and adapt to.
Write at the end
To sum up, high-rise residential buildings will not be eliminated, but will still be an important part of the property market, but they need to continuously improve their competitiveness and attractiveness to adapt to the changes and needs of the market.
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