2015-01-14

Hangzhou Developers Selling At A Loss To Repay Lenders

Hangzhou is dubbed a bellwether for the Chinese real estate market. What will 2015 bring, a rebound or another leg down? Lately the new feature is loss selling by developers, dumping properties to recoup capital.

风向标杭州现“亏本卖房”百套房源价格保守
"The Nine Mile River," which plots, China Resources, Sun Hung Kai in 2009 to 2.77 billion yuan at high prices to win the "King", equivalent to the floor price reached 15,300 yuan / square meter, then shocked the industry. The project is in the market since 2012, has started sale of multi-phase, hundreds of houses are being sold, priced at only 18,000 yuan / square meter.

"We really are selling at a loss, the developer must return the funds." In an interview with the "Daily Economic News" reporter to interview the identity of the buyers, the river nine years of sales staff explained, with 15,300 yuan of "flour" do out of 18,000 yuan of "bread", plus the cost of capital to get to the present, construction costs, loss seems inevitable.

Prices have stabilized, but sales growth has slowed. The impact of canceling the buying restrictions has worn off, and inventory remains high.
Market to pick up or flash in the pan

Currently, housing prices Hangzhou Greentown go of the performance is better, but the price can not be considered high. August 29, 2014, Hangzhou cancel the purchase immediately after the emergence of strong sales of the scene, but into 2015, sales momentum has been significantly reduced.

Worked for a law firm in Beijing, Hangzhou branch of a lawyer told reporters that the first half of 2014, real estate prices first appeared north of the city of Hangzhou, then gradually expanded to the whole city, although some short-term rise in real estate prices have appeared, but overall developers' price for the amount, "the idea is relatively clear.

"Hangzhou cancel the purchase, we believe the market situation will improve." A multinational real estate consulting company executives told the "Daily Economic News" reporter, enter 2015, Hangzhou strength of housing prices are still at a loss situation occurs Sellers, seem to indicate relax restriction policy of "efficacy" has been released completely.

Panyong Tang told reporters, Hangzhou high inventory situation is very serious, in addition to the core area, there are high-quality housing school district resources, other items are difficult to melt.

Transparent houses network data, Hangzhou in November 2014 stock topped 150,000 units, of which nearly 100,000 residential units, a record high. High inventory pressure will continue.

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