preface
A predator in the property market suddenly sold the house at half price, and the news exploded like a bombshell in the calm market. When buyers heard the news, they felt as if they had seen a huge pie falling from the sky, and their eyes were full of excitement and anticipation. In their imagination, the once unattainable house price has now been halved, which is a once-in-a-lifetime opportunity to buy a home at a low price. Behind this seemingly tempting half-price, it is actually a bottomless trap.
"Half-price sale": what looks like a pie is actually a trap
Developers are not in a situation as easy as buyers think. Land prices have been high, like a heavy mountain weighing on them, and the profit margin is already very limited. At this time, the half-price fire sale is tantamount to another cut in the already fragile capital chain. This sparked a domino effect, and other developers were forced to follow suit in order to retain their precarious market share.
But this vicious competition is like an endless war of attrition, and small and medium-sized real estate enterprises are like small sampans in the stormy waves, which may be submerged at any time. As a result, the risk of bank lending has also risen, and the stability of the entire financial system has been seriously threatened. Is this half-price sale the salvation of the property market or the beginning of destruction?
Old landlords' rights protection: the "dominoes" that disrupted the property market
Housing prices plummeted by more than 20%, and early home buyers were like a powder keg that was ignited. They thought they were making a sure investment, after all, the house has always been a symbol of appreciation in the past. But now, their hard-earned wealth has shrunk dramatically in a short period of time, how can they accept this? As a result, these owners flocked to the sales office like a tidal wave, their anger like a volcano about to erupt, and calls for compensation from the developer came and went.
The sales office suddenly became a battlefield, and the rights protection behavior of the owners was like a sudden storm, disrupting the already fragile order of the property market. This wave of rights protection not only affects developers, but also affects the harmonious atmosphere of the whole society. The developer is in a dilemma at this time, like a rat entering the bellows, angry at both ends. If the landlord's demand for compensation is refused, then the protests will rise and fall, the sales office may be surrounded by water, and public opinion will be unfavorable to them; If compensation is promised, the financial situation, which is already losing money due to the price cut, will be even more overwhelmed, which is like digging another deep pit under the already crumbling edifice.
While the government may intervene to try to calm the turmoil, it will be as difficult as trying to scoop the sea dry with a small spoon. Because the owners have different demands, it is difficult to satisfy everyone. And this chaotic situation further makes it more difficult for developers to destock. It's like on a muddy road, where the carriage that had been struggling to move forward has fallen deeper into the mud. The property market seems to have entered a vicious circle, and the negative effects of the price war are becoming more and more obvious. This series of chaos is like a huge spider web, tightly entangled in the property market. So in this case, how will the quality of newly built commercial housing be affected?
The quality of newly built commercial housing: the sacrificial "quality"
Housing prices have fallen again and again, and developers have begun to panic, and profit margins have been compressed to the point where there is very little left. In order not to lose all their money in this cruel price war, some developers have started to use crooked brains and play the trick of cutting corners and shoddy in new projects. It's like when a chef cooks, in order to save costs, he secretly replaces fresh ingredients with ingredients that are about to expire.
The quality of construction, which should have been a top priority, has now become the object of sacrifice. The cost-cutting building materials and construction processes are like hidden time bombs that could detonate in the next 20-30 years. Buyers are happy to think that they have found a big bargain, and happily buy these seemingly cheap houses, but they do not know that they may be bringing home a huge hidden danger. Like apples that are shiny on the outside but rotten on the inside, these houses may soon be classified as dilapidated and face the tragic fate of forced demolition. It's a nightmare for home buyers. How chilling it is that a family can buy a house with all their possitivity, saddled with heavy debts, only to end up as a crumbling "cardboard box" that could collapse at any moment.
This decline in the quality of newly built commercial housing is undoubtedly another mess to the already chaotic property market. It is intertwined with the rights protection of the old owners and the vicious competition of developers, making the situation of the property market more complicated. The developer's tight capital has led to this quality problem, so how tight is their capital chain?
Developer Funding Chain: The "Dangerous Edge" of Fracture
Long-term loss-making sales have left developers' financial situation like a dry riverbed, and cash flow is becoming more and more tight. It's like a person who has been losing blood but has no way to transfuse it. Some projects have to be delayed due to lack of funds, and the new home that buyers are looking forward to has become a distant sight. To make matters worse, some of the properties under construction seem to have been drained of their backbones and are at risk of becoming unfinished projects.
Once the developer's capital chain is broken, the consequences are like an earthquake. The hard-earned money of home buyers will disappear like flowing water, and the warm home of their dreams will instantly become a castle in the sky. The credibility of the entire real estate industry will also be hit hard like an avalanche, market confidence will collapse, and the property market will be like a ship that has lost its course, and may fall into a long-term downturn at any time.
epilogue
The previous chaos in the property market, whether it is the protection of the rights of old owners or the worrying quality of new commercial housing, is closely related to the tension of the developer's capital chain. So where should the property market go in the future? Let's wait and see!
Thank you all for reading, do you have any thoughts or would like to say about this event? You can leave a message in the comment area to discuss, and we'll see you next time!