Roomy Network December 1 Report: In November 2011, the entire city of Xiamen sold a total of 1,088 residential units, which was 1,405 fewer than the 2,493 units sold in October, representing a month-on-month drop of 56.36%. This is the second lowest monthly sales volume in the 11 months of this year so far (only 923 units were sold in March). In November, the transaction volume in Xiamen's real estate market plummeted.
If we only look at the transaction data, compared with other regions in the country, Xiamen's real estate "winter" arrived later. When many cities had no gains during the "Golden September and Silver October," Xiamen's real estate market performed relatively well. As the news about continued real estate regulation became clearer, loans became increasingly difficult to obtain, and with the widespread rumors of price drops across the country, many home buyers and developers chose to wait and see. The most direct consequence of this was a shrinking in transaction volume and a sharp decrease in newly listed properties. In November, the entire city of Xiamen saw only one new project, Lotus New City [Details Consultation], open for sale, while five projects including United Scholar Garden [Details Consultation] and AVIC City added new phases. It could be described as "desolate."
Currently, both developers and home buyers have entered a stalemate stage: one side waiting for prices to drop before buying, the other waiting for better conditions before launching new projects.
As it stands now, Xiamen's real estate market has only seen a decline in transaction volume, but prices remain firm. From what is understood about the developers' situation, although there are occasionally a few projects offering discounts of over a thousand yuan per unit, these are actually very limited, purely "trifling," or just gimmicks. More developers in November chose to delay their openings or phase additions. After an unproductive November, much "hope" is pinned on December for Xiamen's real estate market. According to statistics, more than 20 projects in Xiamen are expected to open or add phases in December, some of which were originally planned for October and November but did not enter the market. As the last month of 2011, developers will be even more cautious about whether or not to launch new projects in December. This is the final opportunity for annual report pushes for listed companies, and the financial pressure on developers who have held back projects for too long is gradually increasing. Indeed, this represents an opportunity for both real estate companies and home buyers, the main issue being whether developers are willing to "take losses."
In a series of exclusive interviews with mainstream real estate figures in Xiamen, reporters found that most developers share the same view regarding the need for Xiamen's real estate market to prepare for "winter" - indeed, Xiamen's real estate "winter" has already arrived. However, they also indicated that it is impossible for Xiamen's housing prices to experience the same level of decline as in Shanghai or Beijing, especially within the island area. Manager Lu Yiguang of Te Fang Group's Market Research Department stated that "Xiamen's geographical location, livable environment, and decreasing land availability all determine that Xiamen's housing prices can only become more reasonable, rather than experiencing a significant price drop." Preparing for the "winter" in the real estate market,
From this perspective, the price reductions that home buyers hope for are unrealistic from the developers' point of view. There is no timeline for how long this drama of "you don't reduce prices, I won't buy" will play out in the real estate market, but one thing is certain: it won't last forever, though it won't be brief either. Taking the example of netizens from our website's Red Scarf Viewing Group, there are still many people interested in viewing properties, and there are many who truly want to buy homes. They have identified houses they like, but they're holding off because they've psychologically prepared themselves to "wait for price reductions." However, for some first-time homebuyers and those seeking improved living conditions, purchasing a home is a necessity, so they can only observe in the short term and ultimately must make a purchase.
How far away is the "spring" of Xiamen's real estate market in 2012? It depends on how long developers and home buyers prepare for the "winter." But it is believed that when next winter arrives, the "spring" of the real estate market will already be here. Waiting for the "blossoming spring" in the real estate market is necessary. (Source: Roomy Network)
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