The Fenghuangjun project of Lingfeng International was opened on April 28. In one week, 90% of the 384 units offered in the project have been sold. For this, the reporter has made an interview with Zeng Wenxiong, a regional marketing supervisor of Great Aim Group and Wu Liqiang, chairman of the board of Zhuhai Tong Yan Real Estate Investment Limited. The two industry insiders pointed out, after the Spring Festival, the house market of the western area became fervent, but most projects were short of supply. Therefore, no wonder Fenghuangjun sold like a hot cake when it was marketed at this time.
Meanwhile, in 2016 the western area will usher in good news one after another. The commencement of construction of Xianghai Bridge will have a direct driving force for Baijiao area where Fenghuangjun is located. After the bridge is opened to traffic, it will only take a 20-min drive from Xiangzhou district to Baijiao. For this reason, 80% customers of the project are from Xiangzhou district, and above 60% of its surrounding projects are also bought by customers from Xiangzhou district. This has changed the low occupancy rate of the western area in the past. With the saturation of the main urban area of Zhuhai, for a long period the western area will show a depression effect. Baijiao area will gradually develop into a top high-end residential area in the western area, so the average house price will commonly break the threshold of 10,000 Yuan/㎡ next year.
Favorable credit policy gives rise to the hot house market of western area
Located at Baijiao area of Doumen, Fenghuangjun project of Lingfeng International was opened on April 28. The project was shown at the housing exhibition of Press Sports Center as a project with fine decoration. As disclosed by Zeng Wenxiong, since its opening, 90% of the 384 units offered by the project have been sold.
It's said that in 2015 the house price of Fenghuangjun was around 6,300 Yuan/㎡, while the price of the new products marketed this time has reached 8,000 Yuan or more. Within less than a year, the project's price has risen by near 2,000 Yuan, but the selling speed has not slowed down. Zeng pointed out, though the project has hiked its price by 2,000 Yuan, it is still a depression of value compared with the downtown and Tanzhou of Zhuhai. "In the past, in Tanzhou houses were sold out soon once they were released, but now the selling speed has slowed down, for at present the price of quite some projects in Tanzhou has reached around 13,000 Yuan. In comparison, the project priced 8,000 Yuan/㎡ in Baijiao of Doumen naturally shows a depression effect." Zeng said.
Wu Liqiang pointed out, the hot sale of Fenghuangjun is a case proving the continual hot sale of houses in the western area from the Spring Festival. It's said that in March and April, the number of deals registered online surpassed 6,000 units in the market of Zhuhai, among which the western area made up a major proportion. Earlier in March, the price of quite some projects hiked by one to two thousand Yuan, but many citizens were attracted to queue up for a whole night waiting to buy a house. In March, more than 500 houses were transacted in Tong Yan Real Estate. During the three days of the housing exhibition, more than 250 houses were transacted by Tong Yan Real Estate, among which over 180 houses belonged to Fenghuangjun. This indicates that at present the customers have a very great demand.
Wu analyzed that the release of the new house loan policy has played a key role in driving the house market. "At present the new policy requiring a down payment of 20% is the first time for the past 13 years." Wu said, "Besides, two years earlier the interest rate for first home was 6.55%, with another uplift of around 10%. At present, the interest rate for first home loan has dropped to 4.9%. After a 15% discount, the interest rate is as low as 4.1%, which is 2/3 the peak interest rate and has a great stimulus for the customers with a rigid demand to enter the market." Wu added.
Driven by traffic infrastructure, home buyers from Xiangzhou district account for above 60%
As disclosed by Zeng, before this batch of new products was rolled out, the proportion of downtown customers among the buyers of Lingfeng International was 20%. However, among the buyers of Fenghuangjun, 80% are downtown customers.
In his eyes, in recent years the customer structure of house market in the western area has witnessed a great change. In the past, investors made up a big proportion among the home buyers in the western area, and most buyers were not locals. As a result, the occupancy rate of many projects in the western area was not high. However, in these two years, the western area has been favored by more and more downtown customers, and mostly customers with a rigid demand.
"After surveying the nearby second-hand house markets, we find that at present the houses for rental are very limited. It's difficult for us to rent some dorms for our employees. Besides, the rental of surrounding houses is very high, which indicates that the occupancy rate of surrounding projects is already very high and the number of houses for investment and rental is very limited." Zeng said.
In interviews in March and April, the reporter also learned that in the recent house buying wave in the western area, downtown customers were the majority. According to the internal data of some agency firm, customers from Xiangzhou already account for around 60% in the western area at present. In 2015, the proportion stayed around 30%. These customers are home buyers with a rigid demand overflowing from the downtown, and customers who buy houses for investment and living.
Wu believed that the commencement of Xianghai Bridge at the end of 2015 had a very great stimulus to the house market of Baijiao area. At present, it takes a 30-40-min drive from the downtown to Doumen. However, after Xianghai Bridge is opened to traffic, the distance will be shortened to a 20-min drive. That is an important reason for the influx of downtown customers. The commence of construction of the bridge had an immediate driving force on the housing price. Before that, several main projects in Baijiao area were priced around 9,000 Yuan, and delivered with fine decoration. However, in March and April this year, the selling price of projects like Shidai Qingcheng surpassed 13,000 Yuan.
From being doubted to being favored by downtown customers
Other than traffic facilities, other favorable facilities in the western area have been built gradually. Wu pointed out, while the house price breaks the threshold of 10,000 Yuan in the western area, the attitude of customers towards the western area has shifted from doubt to recognition. "From Zhuhai, you go northwards to Zhongshan, go eastwards to Qinglv Road, go southwards to Macau. In the future, the development space lies in the western area only. In such an urban layout, Jinwan and North of Hezhou will become the center of the west of Zhuhai in the future. Therefore, the two wings to make Zhuhai soar will be the downtown and western area. The house market in the downtown has been relatively saturated. Now only the western area can promote the rank of Zhuhai. Therefore, the house market in the western area is absolutely a depression." Wu said.
In recent years, Baijiao area has been settled by different giants of real estate. Times and Vanke projects have been basically sold out; Huafa, China Merchants and Lingfeng International, etc. are on sale. At present, the area has a fairly mature residential atmosphere. Wu believed that the construction of Doumen is on two banks of a river, among which Baijiao area is positioned as a luxury mansion area of Doumen. After it was settled by Vanke, Gemdale, Times and China Merchants, the house market of Baijiao has formed a concentration effect. In the future, the image of luxury houses of Baijiao will be increasingly mature.
In 2017, the price in Baijiao area will commonly exceed 10,000 Yuan
For this reason, the industry insiders believe that in the next half of this year, as a whole the house price in the western area will hike. Wu pointed out, at present the credit policy shows a sign of shrinking. If really so, the house market of Zhuhai may witness a short fluctuation in June and July. However, after the customers accept the policy change, the house market will be optimistic as a whole. This year, the market will be in a short supply.
Zeng reckoned that at present the state regulates the real estate based on classification. That the policy of a city is expected to shrink indicates a greater potential of the city's house market. Spoken from this angle, the future is promising for the house market of Zhuhai.
For this reason, Zeng is full of confidence in the sales of the project in the future. On May 10, the project raised its price by 800 Yuan/㎡. At present, the project's price has approached 9,000 Yuan. Zeng disclosed, in the future Great Aim Group will continue to bid for land in the area. The confidence has originated from an expectation in price. Zeng believed, in 2017, it will come true that the house price in Baijiao area will commonly break the threshold of 10,000 Yuan.
