Original title: Survey | Wuhan investors lost 3,000 yuan per square meter for two years after buying a house
"I've been thinking recently that my investment in the house in the past few years has been a failure. The house has not appreciated in value, not to mention the loss, and the family has not improved their living conditions." Mr. Wang, who has lived in Wuhan for 10 years, told The Paper (www. thepaper.cn) sighed when he talked about his actions in purchasing real estate in recent years.
Buying a house and investing in a two-year loss of 3,000 yuan per square meter
Mr. Wang currently has two children, and the family of six lives in a house with an area of about 110 square meters.
Looking back on his series of operations in purchasing real estate in the past few years, Mr. Wang sighed that in recent years, real estate has been on a roller coaster ride, not to mention the high point of the house price, and the living conditions of the family have not been improved.
Mr. Wang said that the family now has three sets of properties, one for self-occupation, one for the new house outside the Third Ring Road, and one for the old and broken primary school district in the inner ring.
According to Mr. Wang, the new house he invested in is currently losing 2,000-3,000 yuan per square meter, and now there are new houses in the project.
The property invested by Mr. Wang is located outside the Third Ring Road in Hanyang District, Wuhan City. He bought it at the end of 2019 and early 2020. After buying it, he encountered an epidemic. At that time, the price was about 15,000 yuan/square meter, and the total price was about 1.6 million yuan.
"The purpose of buying it at that time was to make some money for the appreciation of the house, and then to change to a house for self-occupation. This set itself was not intended for self-occupation. From the perspective of supporting facilities, this large area is all a community, and there is no concept of a school district. , the schools are also new, so we can’t say that there are any school district housing, it can be completely understood as a new district.” Mr. Wang said, “Now there are too many new housing supply outside the third and fourth ring roads in Wuhan, and many new properties are still discounted. , but the locals won’t go there to buy a house, and the foreigners can’t digest it. The houses in the inner ring are either old and shabby or expensive, but there are good schools in it. The old and broken house I bought is I bought it for the children to go to school, but the area is very small and it is one bedroom and one living room. In the future, the children will have to rent another set to go to school, so it is another expense for the family.”
Mr. Wang said that he is considering selling the two properties in total for his own residence and outer ring investment.But Mr. Wang said that the biggest difficulty at present is that it is difficult to sell second-hand houses.
Mr. Wang told The Paper that the new house he invested in was a failure. There are several houses in the community that are listed on the second-hand house website, but now the new house is cheaper than the second-hand house, so there is no intermediary to show it, and no one cares.
According to the monitoring data of the Zhuge Housing Data Research Center, the average price of the second-hand housing market in Wuhan in May 2022 was 18,081 yuan/square meter, a slight decrease of 0.27% month-on-month and a year-on-year decrease of 1.27%, a year-on-year decrease of 0.56 percentage points higher than that in April.
The Paper (www.thepaper.cn) found that discounts on new houses are quite common in the Wuhan property market.
For a project on sale on Guobo Avenue, Hanyang District, the average price recorded is 22,000 yuan/square meter, including 2,000 yuan/square meter of decoration. Now the maximum discount for this project is more than 500,000 yuan, calculated per square meter. The price is about 18,000 yuan / square meter, which is equivalent to 13% off.
There are still people who buy houses for investment: "The disk I bought is resistant to falling"
According to statistics from Yifang Research Center, a local real estate research center in Wuhan, in the first week of June 2022 (May 30-June 5), 17 projects have obtained pre-sale certificates, including 16 residential projects, with a total of about 3811 sets; pure new disk has decreased.In addition, there are 10 real estates that have been promoted without sunlight, and the opening rate has decreased.
Even so, there are still people who see real estate as an investment.
An interviewee surnamed Liang expressed his opinion like this: "Wuhan is now a buyer's market as a whole. In order to quickly eliminate projects, the price discount for new projects should be larger to grab customers."
In December 2020, Mr. Liang purchased a new building project located in the third ring road of Hanyang District.At that time, the average price was 21,000 yuan/square meter, including fine decoration of 3,500 yuan/square meter.Although the price of this project has not increased significantly, Mr. Liang said that the rest of the project are large units, and the small units are gone.
Mr. Liang believes that the project has the potential for appreciation and is very confident."In this area, except for the one I bought that is relatively resistant, many other projects have fallen by 10%-15%. There are too many new projects and the competition is fierce."
New home sales in May fell 60.04% year-on-year
On May 22, "Hubei Announcement" announced that Wuhan City, Hubei Province has introduced a number of measures to support rigid and improved housing needs and increase financial support to promote a virtuous circle and healthy development of Wuhan's real estate market.In terms of supporting rigid and improving housing needs, for families with household registration in the city whose parents come to Han to rely on their children or whose children come to Han to rely on their parents, and who already have two houses in Wuhan, they can purchase one new house in the purchase-restricted area (including new commercial housing and second-hand housing).For households with household registration in this city who have two or three children in line with the national fertility policy, and who already have two houses in Wuhan, they can buy one new house in the restricted area.At the same time, for non-resident households who purchase ordinary housing for the first time in the restricted area, the period for paying social insurance or personal income tax in Wuhan has been adjusted from 2 years to 1 year.
Zhuge Zhuangfang said in a report that due to the short time since the introduction of the Wuhan property market loosening policy, it is expected that with the gradual effect of the policy and the critical period of mid-year performance sprint for real estate companies in June, the decline in transaction scale is expected to reverse.
According to the monitoring data of the Zhuge Housing Data Research Center, from January to May 2022, the average monthly transaction volume of new houses in Wuhan was 8,979 units, down 48.5% from the average monthly transaction volume in the same period in 2021.Entering May, the transaction scale of new houses in Wuhan was further reduced, with 8,414 new house transactions, a decrease of 12.81% month-on-month and a year-on-year decrease of 60.04%.In terms of new house prices, since the beginning of March, driven by the transaction of some improvement projects, the transaction price of new houses in Wuhan has risen for two consecutive months, and began to rise and fall in May.According to the monitoring data of Zhuge Housing Data Research Center, the average transaction price of new houses in Wuhan in May 2022 was 15,683 yuan/square meter, a slight decrease of 0.6% month-on-month and a year-on-year decrease of 6.18%. The trend shows a stable posture.From the perspective of inventory, the inventory of new houses in Wuhan in May 2022 was 147,783 units, a slight decrease of 0.55% month-on-month and a year-on-year increase of 1.27%.From the perspective of demolition, the demolition cycle of new houses in Wuhan in May was 11.3 months, 0.8 months longer than that in April.
Zhuge looking for a house believes in the report that, overall, the adjustment of the Wuhan policy has provided some previously restricted groups with purchase qualifications, which in turn has released a certain purchasing power for the market. In the mid-year performance sprint month of housing companies, it is expected that the new promotion and promotion of housing companies will be strengthened, the market repair process is expected to speed up, and the just-needed and newly-reformed groups can comprehensively consider multiple factors and choose an opportunity to enter the market.
The Paper reporter Li Xiaoqing
