Premised on the condition that the traffic problems of Jiangbei crossing the river are not solved, there is a tendency for the housing prices in Jiangbei to face a decline. Song Jian, the director of Nanjing SuDing Real Estate Research Institute, believed that under the condition that the traffic bottleneck of the Yangtze River Bridge still exists, the housing projects in Jiangbei will definitely have substantive price reductions, but even with price reductions, they may not necessarily be sold.
Why? Song Jian explained that this was related to the excessive amount of housing projects being launched in Jiangbei. After the good news about the cross-river tunnel was released last year, the housing prices in Jiangbei rose too quickly. It was reasonable for developers to appropriately reduce their prices.
How should we understand that even with price reductions, they may not necessarily be sold? Because the housing sources offered by the developers in Jiangbei come with conditions. This time, three housing projects have made regulations limiting the floors. Some floors with good views and good landscapes will definitely not be cheaply sold. Meanwhile, after the financial pressure on the developers eases, it is inevitable for the prices to gradually adjust back.
[Competitors' Reaction] Low land prices in Jiangbei, room for price reduction
How can developers withstand such price reductions and maintain their profits? A developer from Jiangbei who wished to remain anonymous thought: Developers' profits should not be understood in this way because the price reduction space for housing projects in Jiangbei is much larger than in the main urban area.
He said that some super-large housing projects in Qiaobei had very low land prices when they acquired the land. One housing project's lowest land price was only 90,000 yuan per mu. Calculating with an average plot ratio of 1.5, the floor land price (land cost in house price) is less than 100 yuan per square meter. With such land prices, the cost of selling houses can almost be ignored, leaving developers with ample room for price reductions.
Mingfa Binjiang will moderately increase housing prices
Will this pricing method of several housing projects in Qiaobei spread to nearby other developers? How do they view this price reduction? Our housing project will not take any price reduction measures. Instead, the prices of a batch of housing sources to be launched at the end of the month will need to be moderately increased. Ouyang Yanyu, the marketing director of Mingfa Binjiang New City, made a surprising statement.
With others reducing prices, why is Mingfa Binjiang still shouting about raising prices? Ouyang YanYu laughed and said that with a building area of 2.2 million square meters, Mingfa Binjiang has already sold 1.6 million square meters, and the remaining part can be considered as profit. If discounts were given, they would definitely be stronger than other housing projects. However, the 17 buildings to be launched later are basically all riverside apartments, where every household can see the Yangtze River. This is also responsible to the owners who purchased the housing project earlier: the value of the houses needs to appreciate.
Short-term impact on housing prices in Jiangnan
Now that housing projects in Jiangbei are reducing prices, will this affect the commercial and second-hand housing prices in Chengbei and Chengzhong across the river, including Gulou and Xiaguan?
Wang Weiwei, the manager of Nanjing Centaline Real Estate Trading Center, said that if Jiangbei maintains a price around 4,500 yuan per square meter, it might have a certain short-term impact on the housing prices in Chengbei and Xiaguan areas. After all, there is only one river separating them spatially. In the industry, there is a saying that the ratio of housing prices between Jiangbei and Chengbei is 1:2. If Jiangbei is around 4,500 yuan per square meter, then Chengbei would be around 9,000 yuan per square meter. As for the impact on second-hand housing, there should not be much effect because the comparability between the two is relatively poor. The housing prices in areas like Gulou mainly rely on location support.