High-end residential sales in Beijing, Shanghai and Shenzhen heat up The transaction volume of second-hand houses in June hit a new high in recent times

Source: Securities Times

Recently, the sales of high-end residential buildings with a total price of 10 million yuan in first-tier cities such as Beijing, Shanghai, and Shenzhen have been booming, attracting market attention. Industry insiders believe that these high-end residences have location advantages and resource advantages, and the developers are all central enterprises, and the hot sales against the trend also reflect to a certain extent that market confidence is gradually recovering.

It is worth noting that the latest data shows that the transaction volume of second-hand houses in Beijing, Shanghai and Shenzhen in June all hit new highs, of which Beijing hit a new high in the past 15 months, Shanghai hit a new high in 36 months, and Shenzhen hit a new high in 38 months.

High-end residential sales are booming

It is understood that Beijing's Zhonghai Jinghua Jiuxu project, namely CITIC City Phase 5, is located in the second ring road of Xicheng District, close to Financial Street, near Beijing No. 8 Middle School, Beijing Normal University High School and many tertiary hospitals, about 3 kilometers away from Tiananmen Square, less than 2 kilometers away from the Temple of Heaven Park. The project has a total of 325 residences, with the main units ranging from 88 square meters to 280 square meters of two to four bedrooms, and the record price is about 175,000 yuan/square meters. On June 29, the project sold 6.2 billion yuan on the first day of opening.

On June 28, two high-end residences in Shanghai and Shenzhen also achieved hot sales. Among them, Shanghai's Zhonghai Lingdi Jiuxu project is located in Xuhui Binjiang, Shanghai, with a high-rise apartment of 147 square meters to 210 square meters, with a record price of 146,000 yuan/square meter, the lowest set of total prices is 14.94 million yuan, and the highest set is 33.83 million yuan. On the opening day, 232 units were sold out, with a sales amount of 6.638 billion yuan, and it took less than 90 minutes in total.

Shenzhen's Zhonghai Shenwan Jiuxu project is located in Nanshan District, Shenzhen Bay Super Headquarters Base, which is very scarce, the project provides 196 square meters, 252 square meters and 328 square meters of super large units, the blank record price is about 133,000 yuan/square meters, and the total price range is 19.76 million yuan/set - 109 million yuan/set. The project launched 293 units at the opening, and 195 units were removed on the same day, with a sales amount of 10.02 billion yuan.

In addition, on June 27, Shanghai's first style villa project - Zhonghai Shunchang Jiuli & Zhonghai Hengchang Jiuli was also sold out on the first day. The villa price of the project is 298,000 yuan/㎡, and the average total price of the set is about 110 million yuan. On the opening day, 49 villas were sold out.

It is worth noting that the developers of these high-end residential projects with hot sales are all China Overseas Real Estate, which is affiliated with the state-owned China State Construction. According to the latest "Top 200 Sales of Chinese Real Estate Enterprises in the First Half of 2024" released by CRIC Research Center, in the first half of the year, China Overseas Real Estate achieved full-caliber sales of 148.3 billion yuan, second only to Poly Development; In June, the full-caliber sales amount reached 46.6 billion yuan in a single month, ranking first among the top 100 real estate companies and hitting a new high in the past year.

What is the reason for the booming sales?

As for the reasons for the hot sales of high-end residential buildings in first-tier cities during the property market adjustment period, Ding Zuyu, chairman of CRIC Group, believes that several high-end residential projects with hot sales in recent years are located in the strong areas of the cities where they are located, and the supply in the sector is scarce, and they have the advantage of core resources. The developers are all central enterprises, and these projects are also representative works of real estate enterprises' product strength, and multiple factors are superimposed, which has achieved the project's contrarian hot sales in the current market environment.

"At the same time, the hot sales of these high-end residential projects also reflect to a certain extent that market confidence is gradually recovering." Ding Zuyu pointed out that since May, from the central to the local, the property market policy has been significantly optimized and relaxed. According to the monitoring data of CRIC Research Center, the transaction performance of commercial housing in typical cities in June has picked up compared with May, and the transaction scale of 30 monitored cities is 11.57 million square meters, although it is still down 26% year-on-year, but it has increased slightly by 2% month-on-month, indicating that the market transaction has gradually stabilized and the policy has achieved initial results.

Guo Yi, chief analyst of Heshuo Institution, said in an interview with reporters that in general, a landmark signal of the recovery of the property market is the recovery of the high-end residential market in first-tier cities. Because for the wealthy people, their perspective on the law of market development will be higher and farther, and at the same time, the qualifications and funds that can be allocated in their hands are also richer. The previous round of market inflection points was also triggered by the booming sales of high-end residential buildings in Shanghai and Shenzhen. However, at present, although there are signs of stabilization in first-tier cities, whether it can really become an inflection point in the market still needs to be judged in a longer period, because the high-end residential buildings in Shenzhen and Shanghai are more inverted projects, and they are not high-priced houses in the real sense.

Second-hand housing transactions in June

Both hit new highs in recent times

It is worth noting that the latest data shows that in June, the transaction volume of second-hand houses in Beijing, Shanghai and Shenzhen all hit new highs. Among them, the number of second-hand houses in Beijing was 14,987 units, an increase of 12% month-on-month and 29.1% year-on-year, and the transaction volume exceeded the "Xiaoyangchun" in March this year, hitting a new high in the past 15 months. The number of second-hand houses in Shanghai was 26,374, an increase of 41.1% month-on-month, not only a new high this year, but also a new high in the past 36 months. The number of second-hand houses in Shenzhen is about 4,172 sets, which also hit a new high this year and a new high in the past 38 months.

The main reason for the record high transaction volume of second-hand houses in Beijing, Shanghai and Shenzhen is that the new property market policy has been effective. Following the new real estate policy jointly issued by multiple ministries and commissions on May 17, on May 27, Shanghai took the lead in implementing the new policy introduced on May 17, in which the social security or individual income tax payment period for non-Shanghai families to buy houses was changed from 5 years to 3 years, and non-Shanghai singles were expanded from only being able to buy outside the outer ring to buying new houses outside the outer ring and second-hand houses in the whole area, and the social security requirements for Xincheng and Lingang were reduced to 2 years and 1 year, and families with many children could purchase 1 additional set. At the same time, the down payment ratio for the first house is reduced to 20%, the second house is reduced to 35%, and the key six districts are 30%; The interest rate on the first home loan was reduced to 3.5%, the second home loan to 3.9%, and the key six districts to 3.7%. In addition, the loan limit of the first family provident fund has been increased to 1.6 million yuan, and the loan limit of the second set has been increased to 1.3 million yuan, and the loan limit for families with many children has been increased by 20%.

On May 28, Shenzhen announced that it would reduce the minimum down payment ratio and interest rate limit for personal housing loans from May 29. The down payment ratio for the first home is reduced to 20%, and the lower limit of the interest rate is adjusted to LPR-45BP; The down payment ratio for second homes is reduced to 30%, and the lower limit of the interest rate is adjusted to LPR-5BP.

On June 26, Beijing implemented the new policy introduced on May 17, in which the down payment ratio for the first home was reduced to 20%, and the interest rate was reduced to 3.5%; The down payment ratio for second homes is reduced to 35% (30% outside the 5th Ring Road) and the interest rate is reduced to 3.9% (3.7% outside the 5th Ring Road). At the same time, the purchase of a second house by a family with many children with household registration in Beijing can be implemented according to the first home loan policy. In addition, the housing provident fund loan amount for the purchase of green buildings, prefabricated buildings or ultra-low energy consumption buildings can be increased by up to 400,000 yuan, and the maximum loan amount shall not exceed 1.6 million yuan.