More Cities Have Price Volatility Limits; Policy Implemented Years Ago

Shenzhen, Shanghai, Nanjing and Dongguan also have price limits in their online registry, mainly price increase limits, policies that have been in place for years. There hasn't been a large enough decline in most cities to reveal if there are price cut limits in place. In the case of Dongguan, they were put in place during 2011, the last time the market cooled. As in Hangzhou, it is not a ban on selling at a lower price, but the developer must re-file the listing, such that the sale price is less than 15% below the list price. Since it is the government system, it can take time for the process to complete, in the case of Hangzhou a period of 7 to 10 days was mentioned. it is not a long time, but for deeply indebted developers, it is just another problem.

Developers say:

"Now the market is a lack of confidence, not price difficult to exchange volume, if the local government would not let us substantial markdowns, our days will be more difficult." Housing prices listed Hangzhou marketing official said.

Interview with reporters, many developers agree that the government "limit down" might be trying to stabilize market confidence and avoid greater volatility in the price, but for some developers eager to return the funds, the delayed timing of shipments, capital chain the risk of fracture may occur.

......An industry source on condition of anonymity questioned, Reform the current government is to reduce intervention in the market and let the market play a decisive role in allocating resources, local government restrictions on housing prices in the price behavior clearly contrary to this idea.

......Shenzhen real estate veteran Yinxiang Wu believes that the only limit price increases power when needed too. The "limit down" will make buyers believe that the big drop in house prices is challenging the local government's bottom line.

......Whether "limit up" or "limit down", administrative controls let developers feel helpless. "Know what to do, would like to drop your price will not ship to return the funds as soon as possible, now very anxious." Housing prices in Hangzhou, a local mini market manager, told reporters that Hangzhou property market has seen a crisis of confidence, a strong bearish sentiment buyers, If the price is not in place, a lot of real estate could not be sold.

"If the government says it won't limit developers ability to cut prices, but after re-filing can continue to cut prices, that require re-record what is the significance of it?" Shenzhen, a developer believes that doing so will only increase the formalities to bring the developer does not a necessary evil.

Insiders pointed out that the uncertainty of re-filing, the Housing Authority can approve developers after re-filing, but they can also not approve it.

多城设15%-20%降价上限 东莞一楼盘跌幅超20%网签遇阻

As the market situation worsened, the developers tried to price run to return the funds, but suffered the government's "limit down order" can not be a substantial price reduction.

Hangzhou municipal government recently issued regulations, since May 23, if the real estate transaction on more than 15% below the record price will limit net signed by technical means. As soon as he released this provision, a ripple, Hangzhou government unwilling prices fell voices heard.

"Almost every city has such a control system." Shenzhen Planning and Land Committee are told, "China Times" reporter, Shenzhen was the first to expressly provide for the conduct of prices and price controls, and most of the city was secretly executed it.

In Dongguan, recently appeared developers to cut prices more than 15%, resulting in more cases of buyers unable to sign online.

"Now the market is a lack of confidence, not price difficult to exchange volume, if the local government would not let us substantial markdowns, our days will be more difficult." Housing prices listed Hangzhou marketing official said.

Interview with reporters, many developers agree that the government "limit down" might be trying to stabilize market confidence and avoid greater volatility in the price, but for some developers eager to return the funds, the delayed timing of shipments, capital chain the risk of fracture may occur.

Heavy resistance slashed prices

Recently there have been media reports, Dongguan Nan just need to market Century [ News Price apartment Review ] · happy mansion at the end of April when opened, one of the buildings launched a special room with refined decoration, the overall average price of about 9,800 yuan / square meter. The Dongguan Municipality website, the overall average price of Dong record 12,439 yuan / square meter. In other words, this part of the listing prices fell by as much as 21%, significantly more than the 15% required.

After some buyers happy to buy Century · launch special room mansion found that due to these houses is lower than the previous record price of more than 2000 yuan developers / square meter, in violation of government "for the record price of more than 15% of the decline, the need to re-record." provisions can not be net signed.

"Customers do not have to worry about not prepare the case, the developers will find a way to solve." Reporter May 27 by calling the sales office of Century · happy mansion, a salesperson said.

Dongguan Municipality a staff member told this reporter, the real estate was later submitted for the record price adjustment applications, the current selling price is still based on the old record price, the Housing Authority has not entered a new record price front, if the transaction price lower than the record price of 15%, real estate online marketing system will automatically lock screen, not to sign the contract of sale.

In fact, as early as in 2011, the building housing the Bureau of Dongguan, housing departments jointly issued a document stipulates that new housing projects, the sales price once the record is automatically set to 15% lower limit.

"It's always been that way a few years controls, Dongguan developers know that the prices we have to re-audit the record time is two months, the price needs about 20 days to finish the process, from the time of approval can also be seen, the price relatively easier than price. "above Dongguan Municipality staff said.

In addition, Shenzhen, Shanghai and Nanjing and other places have similar provisions.

The fourth quarter of 2011, Dragon Lake [ Introduction News ], Greenland, the sea real estate [ Introduction News ] other large housing prices in Shanghai markdowns, prices have dropped more items than 20%, which is the sales office of some items thwarted by previous owners. Chaos for the property market, the Shanghai Housing Security and Administration in November of that year the introduction of measures to provide real estate sales prices by more than 20% of the float, development companies need to re-record approval.

Deputy Director of Housing Management Department, Pudong, Chen Jianjun diplomatic relations committee has said publicly that, in October 2011 to report to the Shanghai Municipal Housing Authority, apply for a suspension of the sea [ ​​Introduction News ] online Pudong project Presale registration.

"At present, Shenzhen filing system automatically sets the upper limit price fluctuations. Since September 2010, Shenzhen sales price exceeds the record price of real estate are not net signed, but the price is set a 15% limit." Shenzhen Planning and Land Committee, an insider told reporters.

Contrary to "reduce administrative intervention" ideas

This limitation houses price cuts, extend the time behavior of sales, sparked widespread controversy.

Shanghai Research Institute of E-House Yanghongxu that Hangzhou is actually trying to control housing prices dropped prices, but price behavior of direct government intervention in business, equal to directly intervene in the management rights of enterprises, developers want to intensify promotional goods that does not work Government behavior is not appropriate.

An industry source on condition of anonymity questioned, Reform the current government is to reduce intervention in the market and let the market play a decisive role in allocating resources, local government restrictions on housing prices in the price behavior clearly contrary to this idea.

"At first, when the introduction of this provision, primarily to control housing prices, inhibit developers indiscriminate behavior of prices, if not control, over the years prices have risen to heaven, and is now in the downstream of the property market, buyers should understand that the Government behavior is to maintain the stability of the market, prices fell over the economy did not benefit. "above the Shenzhen Urban Planning and Land Committee insiders believe that real estate is a special commodity, needs government guidance pricing.

Shenzhen real estate veteran Yinxiang Wu believes that the only limit price increases power when needed too. The "limit down" will make buyers believe that the big drop in house prices is challenging the local government's bottom line.


Zhang Huifang home win general manager of Hangzhou, told reporters that both buyers and sellers in Hangzhou, lack of confidence in the market environment, the majority of developers should be aware of the price change. Control housing authorities, and let go of some of the unsatisfactory situation further increase pressure on the developers.

In Chapter Huifang seems, despite the aversion of ways, such as record prices installments, each of the price reduction, the price can increase the accumulation of space, but the developers should have the autonomy to adjust the price of the option.

"Local governments should depart from the actual market situation, allowing developers to help themselves." Dean transparent network Hangzhou Institute 丁建刚 told reporters.