Under the premise that the problem of transportation across the river in Jiangbei is not solved, there is a trend for the property prices in Jiangbei to decrease. Song Jian, director of Nanjing Su Ding Real Estate Research Institute, believed that, under the circumstance that the traffic bottleneck of Yangtze River Bridge still exists, property projects in Jiangbei would definitely have substantive price cuts, but price cuts would not necessarily mean sales. Why? Song Jian explained that this was related to the excessive volume of properties launched in Jiangbei. Last year, after the good news such as the cross-river tunnel was conveyed, the property prices in Jiangbei rose too fast. It was reasonable for developers to make moderate price cuts. How to understand that price cuts would not necessarily mean sales? Because the housing sources provided by Jiangbei developers were conditional. This time, the three property projects made regulations on floor restrictions. The housing sources with good floors and good views would definitely not be sold at low prices. Meanwhile, after the financial pressure of developers eased, the gradual adjustment of prices would also be inevitable.
[Reaction from Competitors] Low land prices in Jiangbei, room for price cuts
How can developers bear such price cuts and maintain their own profits? A developer in Jiangbei who did not want to reveal his name believed: Developers' profits should not be understood in this way, because the price cut space for properties in Jiangbei was much larger than that in the main urban area. He said that some super-large property projects in Qiaobei had relatively low land prices when they acquired the land. One property project had a minimum land price of only 90,000 yuan per mu. Calculating an average plot ratio of 1.5, the floor land price (land cost in house prices) was less than 100 yuan per square meter. Such land prices could almost be ignored when selling houses, which gave developers a lot of room for price cuts.
Mingfa Binjiang will moderately raise house prices
Will the flat-price method of multiple property projects in Qiaobei spread to nearby other developers? How do they view this price cut? Our property project will not have any price cut measures. Instead, we will moderately raise the prices of a batch of housing sources to be launched at the end of the month. Ouyang Yan Yu, the marketing manager of Mingfa Binjiang New City, made a surprising statement.
While others are cutting prices, why is the Mingfa Binjiang property project still shouting about raising prices? Ouyang Yan Yu smiled and said that the 2.2 million square meters of construction area of Mingfa Binjiang had already sold 1.6 million square meters so far. The remaining part could be considered as profit. If discounted, it would definitely be more aggressive than other property projects. However, the 17 buildings to be launched later were basically all riverside apartments, with every household having a view of the Yangtze River. Moreover, this was also responsible for the owners who had purchased the property project earlier: the value of the house needed to appreciate.
In the short term, it will have a certain impact on the property prices in Jiangnan
Now, with the price cuts of property projects in Jiangbei, will it affect the commercial properties and second-hand houses in Chengan and Chengzhong areas on the opposite bank, such as Gulou and Xiaguan? Wang Wei Wei, manager of Nanjing Centaline Real Estate Trading Center, said that if the property prices in Jiangbei remained around 4,500 yuan per square meter, then in the short term, it might have a certain impact on the property prices in the Chengan and Xiaguan areas. After all, there was only one river separating them spatially. There was also a saying in the industry that the property prices in Jiangbei and Chengan were in a 1:2 ratio. If Jiangbei was around 4,500 yuan per square meter, then Chengan would remain around 9,000 yuan per square meter. As for second-hand houses, there should be no significant impact, because the comparability between the two was relatively poor. For example, the property prices near Gulou were mainly supported by the location factor.