Beijing Housing Market: Price and Volume Fall in First Week of June

I generally avoid posting weekly real estate sales data because it is very volatile, especially the price data. I still don't place any weight on weekly sales figures, but this first week was particularly bad for Beijing. The Dragon Boat Festival (June 2) is blamed by some for the more than 50% weekly drop in new home sales and a 5% decline in price (existing home sales were down about 40% with a 1% drop in price) and June is also a weaker period for sales; April-May and September-October are the strong periods for home sales. While some of the drop can be explained by seasonality, it was also the lowest weekly sales figure this year. If this volume isn't a one week blip (assume it is for now), a further drop in prices will be needed to increase sales volume.

Here's a chart of the new home sales by week:

This wasn't a Beijing only slump. Here's a chart of weekly sales in Qingdao:

6月首周北京楼市量价齐跌 新增供应环比降六成

Phoenix real estate news since the Year of the Horse, the growing property market in the doldrums, in June became the final push housing prices in the first half of each month. Beijing Municipal Construction Committee data show that, by the impact of the Dragon Boat Festival holiday, the first 23 weeks (6.2-6.8) Beijing property market volume and price down, new supply also stopped after rapid momentum, slightly depressed.

At present, the recent developers will face intensified push plate and accelerate delivery of two-way pressure, "take the amount of sales" will become mainstream.

Used hand "Together" staged ring infer price down

Last week, although Beijing has experienced extremely hot weather, storm, rain and rainbow roller coaster barometer of the property market but still the continuation of "no rain and no sunshine" The downturn trend.

"Mom Central" repeatedly yelling mortgage rate has accelerated, still tight credit environment; housing since the beginning of the first wave number , customers just need some diversion, watching the atmosphere is further aggravated; coupled originally 6,7 month in the traditional sense of the season , Transaction weaken further.

Affected by the Dragon Boat Festival holiday, trading volume fell sharply, the average price also fell. LaSalle Bank statistics show a total turnover of 592 sets Yishoufang last week, a decline of 52.83%; transaction price 23,356 yuan / square meter, down 5.18 percent.

Administrative regions transactions, the majority of last week, the county volume decline, the largest share of the sun, the total turnover of 23.99%, the main contribution to the project is often Ying AD [ News Price apartment review ]; followed Daxing, turnover ratio to 21.96%, and the third for the Fangshan turnover accounted for 13.51%.

At the same time, volume and price situation also in the secondary housing market staged. According to the chain of home real estate market research statistics, last week Beijing second-hand housing turnover 1077 units, a sharp decline of 42.7%. The average transaction price of 25,994 yuan / square meter, down 3.3%.

According to analysis, the Dragon Boat Festival holidays for auction produced a certain extent, but volume dropped sharply this week, the main reason is that the demand for the depth of the impact resulting from the sidelines lukewarm market transactions.

It is worth mentioning that the average daily new listings and tourists experiencing declining for three consecutive weeks after both appeared this week picked up: the average daily amount of new houses increased by 6.4% qoq, while the average daily added the amount of tourists increased by 10.3% qoq. June first week of the new demand and supply ratio was 5.51, up 0.19 points from last week.

Lack of new supply chain to reduce stamina Liu Cheng

Beijing Municipal Construction Committee official website last week, only two items to get the pre-sale permit, the introduction listings 776 units, a decrease of sticking. The total area of ​​75,400 square meters of supply. As of June 8, Beijing new pre-sale permit 129 total listings 52 820 units launched a total area of ​​5,506,900 square meters of supply.

Added two projects Fangshan Hee trillion Garden ( first open [ Introduction News ] • Xi Yue [ News Price apartment Review ] Hill) and Tongzhou [ News Price apartment review ] of the Beijing International Trade Mansion, both in the five between the ring six rings. Among them, the Beijing International Trade Mansion is a pure supply of new projects. From the pricing point of view, Xi Garden and the proposed sale price trillion Beijing International Trade Mansion low-end projects were about 22,000 yuan / square meter and 30,000 yuan / square meter, and the house area is too small.
As of June 8, 2014, Beijing city Yishoufang salable commodity housing units for 86,955 sets, 2261 sets a significant increase over the previous week, the stock continued to rise significantly. If the city by nearly eight weeks Beijing Yishoufang market average selling rate of 1253 units, the current housing stock is about 69.4 weeks fully digested by the market, compared with the previous week has been stretched.

Chain of home real estate analysts believe that although the supply of new homes has been since the second quarter at a high level, but the majority of housing prices in recent sales situation is not optimistic, most with varying degrees of decline, benchmarking corporate performance gains also appeared narrowed. At present, the recent developers will face intensified push plate and accelerate delivery of two-way pressure, "take the amount of sales" will become mainstream.