Beijing Converted Apts: Transactions Down 99pc, 6 Trillion Yuan Frozen

It seems like there are no transactions in Beijing’s housing market, and developers keep quiet out of fear reads the headline.

Developers are used to playing on the edge of government restrictions, but the restrictions on converted apartments and credit tightening have
iFeng: 冰封的北京商住:新政后几乎零成交 开发商噤若寒蝉

With the residential function to digest the commercial inventory, which is the developers over the years are very familiar with the “edge of the ball-style” play. However, the sudden commercial and retail restrictions on loans to let everyone caught off guard.

According to the March 26 Beijing Municipal Construction Committee issued by the commercial project control policy requirements: commercial project minimum division unit shall not be less than 500 square meters, shall not be allowed to change the use of residence and so on. Development enterprises under construction (including in the sale) business projects, not sold to individuals. Where a second-hand commercial project has been sold for sale to an individual, the buyer is required to pay the full amount in addition to satisfying the residential purchase request.

Recently, the “China Business” reporter visited Beijing’s largest “coverted” community in Zhonghong Xiangsu found that this once vibrant young community with nearly ten thousand sets of commercial and residential homes, has almost overnight turned into a depression. Today, the intermediary stores have closed, many restaurants, supermarkets, cafes, etc. also closed.

Centaline real estate chief analyst Zhang Dawei told reporters: “In the past few months, Beijing business class property monthly contract are more than 3000 sets, a little more than a month after “3.26” buying restrictions, the market turnover fell by 99% , almost close to zero turnover, more than 6 trillion yuan of funds in Beijing is completely frozen.

Dilemma

“420,000 yuan deposit I have received, waiting to register the property!” Ms. Wang said that the vigorous and resolute she never imagined in this metaphor on the face of her more vigorous and resolute commercial and commercial purchase policy.

“Would like to sell the house that set of business, just to the school district to save a down payment.” In two years, Ms. Wang’s son will go to primary school. Although Beijing to fully limit the commercial and commercial rumors have heard, Ms. Wang is still very confident of their speed of action.

This is located in Chaoyang District Beiyuan for sale of housing soon to attract a few buyers to come to the government – in 2013, Ms. Wang to 1.6 million price loan to purchase, in order not to be possible future limit Credit policy, she also “vision” to use their own mother’s name.

The final price of the transaction was finalized at $ 2.6 million. A buyer soon signed a contract with her and paid a deposit of 420,000 yuan. It is unexpected, is the history of the most stringent business protection policy introduced, so that both Ms. Wang and buyers stupid. Buyers lost the purchase qualification with the Ministry of Housing and Urban ordered to stop the network signed, this set of hottest commercial housing and smashed back to Ms. Wang’s own hands.

“What is the purchase, is simply banned ah!” Ruins returned after the deposit of Ms. Wang secretly analysis of their own house has become a hot potato, shot hope is slim. “Even if the release of the network again, it is estimated that the price should drop about three percent.”

“3.26” limit the purchase of loans to the Beijing commercial and commercial market hit immediate. According to the chain of the Institute of the conservative estimates, such as Ms. Wang this dilemma “in the way” the number of groups up to 10,000 or so. May 9, chain home group, said the number of commercial stores closed has reached 44.

In Beijing pixels, have been the owner of the price of millions of houses unsuccessful news spread out. There are some plans to rent in Beijing, seeking friends, because there is no intermediary to help, coupled with the district now “illegal” housing in most formal channels have been unable to show, had to secretly in the subway and the district posted a small Advertising, or resort to social networking sites and other marginal channels to publish rental information.

Open Douban “Beijing rental” group, enter “Xiangsu” (像素) and other keywords can be seen, since March 26 more than a month since the time, the number of rentals and looking for rentals posts number in the hundreds. Which is not difficult to see some of the transfer of the battlefield of the intermediary figure.

Developers are also having trouble selling properties, and the article says there are about 600,000 properties built over the past 10 years which are affected by Beijing’s various restrictions, among them 450,000 converted apartments.

Buyers are also becoming more cautious.

iFeng: 北京“3·17新政”两月考:“买房者已不敢出手”

“China Times: chinatimes” reporter visited the Chaoyang District, Beijing Shuangjing, Dawang Road, Baiziwan and other regions also found that since the “3.17 New Deal” since the Beijing housing transactions there has been an unprecedented 7 weeks continuous decline, in April some stores saw sales of almost zero.

“Now, the seller can talk about the price, down a 100,000, 80,000 is not a problem.” An intermediary sales staff told reporters. “3.17 New Deal” disrupted the buyers, the intermediary of the established plan, making mediation reshuffle, buying and selling stalemate. Chain family official online display, from March 22 to May 15, is located in the Huilongguan a sale of housing prices after several down, the total price from 5.0 million to 4.6 million, but has not yet traded.

…Thunder fist down, Beijing’s commercial housing into the frozen period. In the commercial and residential projects – Taihe Central Plaza sales hall, in addition to duty on the front desk and security, empty. “At present, this area did not live any people, very lonely.” Responsible reception staff admitted that this situation lasted for two months. Reporters then visited the focus on the Beijing Wuhuan outside the shops, the scene is also deserted.

In addition, the financial regulation is to curb the real estate market life door.

Beijing Banking Regulatory Bureau, the latest data show that the size of mortgage loans and the number of mortgage approval both significantly reduced. Such as the second week of April to the fourth week, the jurisdiction of the commercial banks to issue personal housing loans totaled 15.328 billion yuan, the average weekly ring down 20%; individual housing loan approval number were 4456, 3944, 3188, Down nearly two percent. Since the “51” after the holiday, a number of banks in Beijing to cancel the first suite interest rate concessions, two suites are the benchmark interest rate floating 20%, more than 25 years of housing loans also ceased approval. “The Beijing real estate feast is no more.” Gu Haibo sighs.

Author: 罗臻 http://www.investinginchinesestocks.blogspot.com

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