It is common to see discounts and promotions for commercial properties. A real estate project in Luohu, Shenzhen, with a registered price of 90000 yuan and a sale price of 40000 yuan? Office Property Renheng Shenzhen | Discounts | Sales | Residential | Filing | Products | Shenzhen | Projects
Recently, media reported that a new housing project in Luohu, Shenzhen has been sold at a 50% discount on its registered price. The original registered price was 98000 yuan per square meter, and the current lowest price is 38900 yuan per square meter. After calling the project sales office, Pengpai News learned that the situation is true.
Due to its office nature, prices have been significantly reduced since the end of last year
The above-mentioned Shenzhen Luohu project is also known as the Renheng Shenzhiyuan project. According to the Shenzhen Real Estate Information Platform, the Renheng Shenzhiyuan project was approved for pre-sale on July 13, 2021, developed by Shenzhen Dongguan Shengtai Investment Co., Ltd., a subsidiary of Renheng Group.
According to information released by multiple intermediaries, "Renheng Shenzhiyuan is on sale at a 50% discount, originally priced at 98000 yuan per square meter, but now starting at 39000 yuan per square meter." Some intermediaries have also advertised it as "the cheapest first-hand property in Luohu, Shenzhen.".
A local real estate agent in Shenzhen told Pengpai News that the Renheng Shenzhiyuan project has been sold for two to three years, but the sales have not been good, and discounted sales have not been launched recently. "Since the end of last year, there has been a large-scale price reduction.".
According to the sales manager of Renheng Shenzhiyuan project, the project covers an area of approximately 5743 square meters, with a total of 324 households and main products ranging from 60 square meters to 249 square meters. "At present, it is in the late trading period, with about 150 households remaining. In order to accelerate the destocking process, certain discounts have been made. The average price of the project is currently about 45000 yuan/square meter, and the low area project is around 40000 yuan/square meter."
The sales manager admitted that the registered price for the project was over 90000, but the actual discount in the previous sales was over 60000. "The filing price is relatively high, and certain discounts will also be given during early sales."
Pengpai News saw on the Shenzhen Real Estate Information Platform that the housing type of the project is commercial office, and the main building is an office building.
He Qianru, Director of the National Research Center of Meilian Property, pointed out that the Renheng Shenzhiyuan project in Luohu, Shenzhen is not a traditional business apartment project, and its registered property for sale is an office building. The act of discounted sales of office properties is not regulated by relevant departments, which is completely different from residential properties. At present, the real estate market in Shenzhen is relatively sluggish, and coupled with the relatively tight funds of real estate enterprises, it is extremely necessary to accelerate the return of funds, and discount promotions are the most direct means.
Regarding the action of selling the project at a 50% discount compared to the registered price, Zheng Shulun, President of Zhongyuan Real Estate South China and Managing Director of Shenzhen Zhongyuan, stated that the registered price of Renheng Shenzhiyuan project is high, far higher than the price of residential properties in the same location. Although it is of luxury quality, the location does not match the product, and the price is still far higher than the value of the product itself. At the same time, the project is for office use and aims to convert the office building into a residential apartment product. It does not have access to gas or balconies, and the unit price of surrounding apartment products is generally between 40000 and 60000 yuan. It mentioned that Luohu District is a non hot area, and residential products are generally discounted by 20% or 15%, with greater discounts for apartments and commercial properties.
Discounted sales of new houses in Shenzhen are quite common
Industry insiders in Shenzhen pointed out that currently, it is very common for new housing projects to be sold at a discount in the Shenzhen market, with residential projects being generally discounted, and products such as apartments and commercial properties being even more so.
He Qianru mentioned that currently in the Shenzhen market, it is common for commercial properties to offer discounts and promotions. For example, the Central Tianyuan project launched four sets of limited time discount units in the early stage, with a maximum discount of 6.56 million yuan; The Zhenlin Tianhui project has a fixed price unit of 12.76 million yuan, with a direct decrease of 4.38 million yuan; The Huaqiao City Baochen project has launched three fixed price housing units, with a maximum direct reduction of 2.24 million yuan per unit.
Zheng Shulun also mentioned that the Wan Shang Junxi residential project, which also has a higher filing price, will be discounted by 20%; Multiple residential products in Luohu are discounted by 85%. Meanwhile, last year, the registered price of the same office product in Luohu, Zhaoxin Huijin Plaza, was about 90000 yuan/square meter, but it was also reduced to around 60000 yuan/square meter. Developers are facing crises, such as Jiazhaoye and Evergrande, while commercial and other products are also choosing to sell at nearly 50% off.
Zheng Shulun mentioned that in the current situation where residential products are generally difficult to sell, products with stronger investment attributes such as apartments and commercial properties are even more difficult.
From the market situation in the first half of this year, according to data from the Shenzhen Zhongyuan Research Center, Shenzhen has experienced a new heat and cooled down, while the overall trend of new market capitalization has declined. Among the 63 new residential projects listed in Shenzhen in the first half of the year, only 1 project was sold out at the opening, a decrease of 2 compared to the same period last year. In the first half of the year, about 30% of residential projects were sold out, and about 70% of real estate projects had a sales rate of less than 50%. At the same time, regional differentiation is still evident, with Nanshan District achieving relatively ideal results in desertification, while Pingshan, Longgang and other regions have average desertification effects.
In terms of price, in the first half of 2023, the transaction prices of new residential properties in multiple districts decreased. The main reason was that developers exchanged price for quantity and increased marketing efforts to promote real estate sales. Most new properties offered a 10% discount to attract customers, and there were even rumors of "zero down payment" or "low down payment" home purchases in the market.
From the perspective of inventory, the inventory of residential properties in Shenzhen remained at a high level in the first half of the year, and the saleable area reached a new high in six years by the end of June. According to data from Shenzhen Zhongyuan Research Center, the policy intensity weakened in the second quarter, leading to a decrease in homebuyers' confidence in purchasing, resulting in a significant increase in inventory at the end of the first half of the year. The liquidation time increased from 13.62 months at the beginning of the year to 14.94 months, reaching a new high in six years.
"For customers, unlike residential projects, business apartments, and office to residential products, the first is that there is no degree, and the second is that its holding cost is high, and the transaction cost is also high. Therefore, in the current market environment, even if there are no purchase restrictions, the attractiveness of the product is relatively low." Shenzhen industry insiders said.
For real estate companies, Zheng Shulun believes that although there are continuous support policies for real estate companies, the recent housing crisis is still ongoing, especially for leading real estate companies such as Country Garden and Ocean Shipping, which reflects the general lack of liquidity among real estate companies. Ensuring the survival of recovered funds is still the primary goal, so reducing prices and selling recovered funds is an inevitable choice for the vast majority of developers.
Pengpai News reporter Ji Simin
