Wuhan real estate recovery, just need to be active with investors.
Full of vigour and novel coronavirus pneumonia in Wuhan on 2020, May Day holiday, with the Chinese breakfast of hot dry noodles and noodles nested, and the Yellow Crane Tower scenic area of Jiangcheng reopened, and the noisy and prosperous city was filled with fireworks and smoke. Jiangcheng was also a new city. “Long time no see” urban life began to recover. Along with the rapid recovery of Jiangcheng’s real estate market.
Long time no see buyers have appeared in the sales department, which makes this year’s a single unsigned Sales Department staff happy. A real estate agent said with a smile, “it’s only when you can see the offline customers that you can be confident.”
Just in the past, “May Day” holiday, Wuhan property market received the first test after the epidemic, with good results. According to the city’s housing security and housing administration, this year’s data recorded 865 sets, or nearly 80% of last year’s total, compared with the number of online contracts signed for more than 1000 sets of commercial housing last year.
Several front-line staff engaged in real estate sales said frankly that although the sales situation is not as good as before, the recovery process of Jiangcheng real estate market has exceeded expectations.
It is worth noting that outside the ranks of local purchasers, the figures of foreign investors are slightly active: carrying bags, wearing masks, returning from other places, paying down in one time, mostly choosing the buildings along the subway or around the business circle, and the age is about 40 years old. This is almost the common portrait of real estate purchasers, which has injected vitality into the dull four month long real estate market.
People from Wuhan housing and construction system are also optimistic that the overall transaction volume of Wuhan real estate market is expected to recover about 90% by the end of the second quarter.
Recover faster than expected
Wang Xiaobin originally thought that the sales department would be a lonely house during the May Day holiday. Which materials, their own Hanyang District, Wuhan, a unit price of no more than 20000 yuan per square meter of improved properties sold out, but also every day four to five groups of guests came to inquire. “At the end of the holiday, people call from time to time to ask if there is a dish on sale.” Although the salesperson is not tired to the throat dry, people sit down, but every day the salesperson is busy in the sales department to receive guests.
It is almost the common view of the market people that the recovery of Wuhan real estate market exceeds the expectation. Even though many sales departments still strictly implement the measures of restricting the flow of people, such as making an appointment in advance to visit the real estate and entering the sales department in groups, some of the more favored real estate sales are generally popular and the sales volume is more optimistic.
According to the data of Wuhan housing security and Housing Administration Bureau, during the period of “May 1st”, the number of commercial houses signed online in Wuhan was 865; in the same period last year, the number was 1162.
An insider of Wuhan real estate construction also said in an interview with the first financial reporter that the recovery of Wuhan real estate market is relatively fast, and it is expected that the overall transaction of the real estate market will recover about 90% by the end of the second quarter. At present, the recovery rate of employees in Wuhan real estate enterprises is over 90%, and the supply of real estate market has recovered to more than 60% last year.
Investors quietly enter the market
Behind the rapid recovery of the real estate market, we can not do without the support of home buyers. Because of the epidemic, many people who didn’t return home during the Spring Festival chose to go back to Jiangcheng to watch the market.
Return from other places, one-time down payment, mostly choose the real estate along the subway or around the business district, the age is about 40 years old, which is almost the common portrait of the active real estate buyers.
In addition to the holiday, part of the attraction for investors is that the overall trend of house prices in Wuhan is stable, and part of the second-hand house prices are down year on year. According to the full sample survey data of new housing in 100 cities by the price index of 100 cities in China’s real estate index system, in April 2020, the average price of new housing in Wuhan fell by 0.06% on a month on month basis, which is one of the few cities where the price dropped on a month on month basis. In the words of investors, it is “the time to copy the bottom”.
The city of Wuhan one belt, one road, the other is the city’s low threshold, better medical and educational resources, better industrial foundation, millions of college students, and other national factors such as the Yangtze River economic belt, the belt and the other.
Different from the “May 1st” in previous years, developers used to store customers and build marketing momentum, but this year there is less overall.
A project leader of Vanke Cloud City said that due to the epidemic situation, it is too late to catch up with the “51” schedule for real estate marketing, customer storage, etc. “this year, the sales are basically started directly, and the sales situation is still optimistic, with only a small part of the final market.”
At the same time, many developers still retain online sales channels, and some projects have increased promotions and preferences, such as no reason to check out, installment payments, purchase vouchers, etc. Part of the sold out properties mainly adopt the rough housing sales strategy, which has a higher cost performance, which is rare in previous years.
The central China branch of China Research Institute pointed out that at present, there are two reasons for the acceleration of Wuhan’s real estate market volume. The first is the accumulation of historical transaction factors, i.e. some online transaction volumes have been overstocked to the present; the second is the gradual increase of real estate market push, the rigid demand has always existed, and it is gradually releasing. With the continuous promotion of the resumption of the tertiary industry and the return of millions of college students to China, it is expected that the turnover of the real estate market will continue to increase.