Real estate companies are launching fancy home sales to recover funds, with "zero down payment" and financing for buying and giving away houses | real estate companies | selling houses
In order to quickly recover funds, various real estate companies have come up with various tricks and tricks.
The developer claims to be able to purchase a house with zero down payment and get it as a free gift
Pengpai News learned that a real estate development in Wuxi recently advertised that it is possible to purchase a house with zero down payment. The reporter called the sales office as a homebuyer to inquire about specific policies. The salesperson of the real estate project said that there is currently a policy of zero down payment for purchasing a house, and homebuyers only need to pay a deposit of 50000 yuan to purchase a house. Currently, there are 20 preferential quotas available. But as for the specific operation method, the salesperson said that the buyer needs to go offline to see the house before introducing it, and the salesperson is not willing to say more about this matter over the phone.
This property is the Future Center of Rongchuang Urban Railway, located at the intersection of Zhanbei Road and Xitang Middle Road in Qianzhou, Huishan District. The developer is Wuxi Ronghong Urban Construction and Development Co., Ltd.
It is worth mentioning that when searching for information, Pengpai News found that the official WeChat account of Rongchuang Wuxi released a news about the property on May 14, 2023, stating that "10% down payment, easy purchase from 150000".
Only half a month later, the promotion method for this property has changed to paying a deposit of 50000 yuan to purchase a house.
In the current downturn of real estate, it is not uncommon for developers to offer various promotions, such as pushing discounted houses, buying houses for decoration, giving property fees, giving parking spaces, and so on. In fact, this is also a disguised act of price reduction.
In addition to the "zero down payment" homebuyers launched by the aforementioned developers, there are also developers who have started selling houses through models such as buying one house for free, buying a house with a low down payment, and buying a house for gold.
Xi'an Golden Harbor Real Estate Promotion: Buy one set and get one free. The policy of buying one set and getting one set free here is not for residential properties in the same community or other property rights, but for buyers who can obtain free living rights for three consecutive years in Hainan's cultural and tourism projects. The cultural and tourism project in Hainan is the Country Garden Clear Water Bay in Sanya, and buyers can have free airport transportation rights, but they need to bear the water, electricity, and property fees during their residence period.
In addition, some developers have announced buying houses and giving away gold.
On June 14th, Pengpai News consulted with a real estate consultant for the Huafa Huitianfu project located in Lin'an District, Hangzhou. The consultant stated that there was indeed a previous activity of buying a house and giving away gold. The property had previously offered an offer of "starting with 700 grams of gold for buying a house, and up to 1050 grams of gold for returning". However, the gold giving activity has been suspended, and it is unclear when it will resume in the future.
The real estate consultant explained that previously, as long as the buyer purchased the corresponding property and made the necessary payment, and the loan information was reviewed and approved without any issues, the sales office would return the buyer's corresponding gold and sign an additional agreement.
It is understood that the above-mentioned gold gift promotion is for the fourth and fifth batches of properties in the real estate development. Specifically, if a homebuyer purchases the fourth batch of 89 square meter units, they can enjoy a refund of 700 grams of gold, 850 grams of gold for 100 square meter units, and 1000 grams of gold for 119 square meter units; Purchase of the fifth batch of 89 square meter units can receive a refund of 900 grams of gold, while 100 square meter units can receive a refund of 1050 grams of gold.
In February of this year, Xincheng Jinyue Garden in Longgang District, Shenzhen was launched for sale. In a promotional poster released, the agent stated that "the down payment is only 300000 yuan, and you can buy a three bedroom apartment facing south in Shenzhen.".
According to the information released by the intermediary, the minimum total price of the property is 2.95 million yuan. Based on a 30% down payment, a normal down payment of 885000 yuan is required. However, the intermediary stated that the down payment is only 300000 yuan. In addition, it is claimed that "the portion paid by oneself can be used for a small loan, and 300000 yuan can be repaid in 5 years, with repayment every six months. The cost is borne by oneself, and it is about 60000 yuan over 5 years. It is equivalent to zero down payment!"
On February 19th, the developer of Xincheng Jinyue Garden in Longgang District, Shenzhen, issued a statement stating that the first phase of the Jinyue Garden project obtained a pre-sale certificate in July 2022. However, due to the multiple impacts of the market, industry, and epidemic, project sales have been delayed. In order to promote sales, the developer has developed a price discount promotion strategy for some housing units. The promotion content is to only offer discounts for some housing units of 78 square meters and 115 square meters of the project, with a total discounted price between 300000 and 600000 yuan. Customers can lock in the housing units after paying the first deposit, and complete the corresponding contract signing and filing after the down payment is fully paid, all in accordance with the required standard procedures for recent times. The promotional discount for the project was misinterpreted by some channel agents, resulting in a large amount of dissemination of information such as "Longgang One Project Down Payment of 300000" and "Developers Send 600000". At the same time, due to negligence in on-site management, there was a significant deviation in the understanding of discounts among our sales personnel, intermediary agents, and home buyers. For the 8 batches of customers who paid sincerity funds on the same day without fully understanding the information, the developer will also make unconditional refunds
Regarding the issue of "low down payment" for the project, it was reported that a staff member from the Longgang District Housing and Construction Bureau in Shenzhen was quoted as saying, "Low down payment is explicitly prohibited. Giving 20% down payment is equivalent to privately lowering the record price. On February 17th, Xincheng Jinyue Garden began promoting home purchase discounts, and on the 18th, we investigated and dealt with it."
According to the official WeChat account of Xincheng Jinyue City, developer Xincheng Group is a member enterprise of state-owned enterprise China Xinda. As of the end of 2021, it has entered cities such as Shenzhen, Shanghai, Suzhou, and Changsha, and has obtained a total of 11 projects with a total investment scale of nearly 30 billion yuan.
"The overall market supply and demand are weak"
On June 13th, the Kerui Research Center released a report stating that the total financing volume of real estate companies in May reached a new low in a single month since 2020.
Data shows that the total financing amount of 80 typical real estate companies in May was 26.329 billion yuan, a decrease of 56.4% month on month and 60.4% year-on-year, which is a new low for monthly financing since 2020. Real estate bond issuance reached 17.846 billion yuan, a decrease of 49.3% month on month and 59.8% year-on-year. The average financing cost of bonds was 3.34%, a decrease of 0.05% month on month and 1.26% year-on-year.
On June 15th, the National Bureau of Statistics released a report on the changes in the sales prices of commercial housing in 70 large and medium-sized cities in May. The number of cities with a month on month increase in sales prices of commercial housing decreased, while the number of cities with a month on month increase in sales prices of new commercial housing and second-hand housing decreased by 16 and 21, respectively, compared to April.
From the perspective of new houses, the overall increase in housing prices in cities of all levels has fallen. According to data from the National Bureau of Statistics, in May, the sales prices of newly-built commercial housing in first tier cities increased by 0.1% month on month, a decrease of 0.3 percentage points from April. Among them, Beijing, Shanghai, and Guangzhou increased by 0.2%, 0.3%, and 0.1% month on month, respectively, while Shenzhen decreased by 0.2%; The sales price of newly-built commercial residential properties in second tier cities increased by 0.2% month on month, a decrease of 0.2 percentage points from April; The sales price of newly-built commercial residential properties in third tier cities remained unchanged from a 0.2% increase in April compared to the previous month.
According to the Top 100 Sales Rankings of Chinese Real Estate Enterprises for the First Five Months of this year released by the Kerui Real Estate Research Center, the top three developers in the first five months were Poly Development, Vanke, and CNOOC Real Estate, with sales of 195.6 billion yuan, 165.86 billion yuan, and 146.3 billion yuan, respectively.
From the perspective of corporate performance, in May 2023, only 20% of the top 100 real estate companies saw a month on month growth in performance, with nearly half of the companies experiencing year-on-year growth. From a hierarchical perspective, among the top 30 real estate companies, the proportion of companies with year-on-year growth in monthly performance is the highest, reaching nearly 70%. Among them, real estate companies such as China Resources Land, China Merchants Shekou, Binjiang Group, and China Jinmao all saw year-on-year performance growth of over 50% in May.
Kerui believes that overall, the market supply and demand are weak. In addition to limited supply reduction and supply-demand mismatch, the core reason is also that residents' expectations have not fully recovered, their confidence in purchasing houses is insufficient, and the accumulated demand for basic needs and renovation in the early stage has been fully released, resulting in a sustained slowdown in the growth momentum of the real estate market. It is expected that June will be a key milestone for real estate companies in the first half of the year. In order to sprint towards mid year performance, real estate companies will also accelerate the pace of promotion, increase discount rates, and maintain a month on month increase in supply expectations. The transaction is expected to see a slight increase in volume.
Yan Yuejin, the research director of E-house Research Institute, believes that the fancy selling of houses by real estate companies fundamentally reflects the difficulty for homebuyers to find and sell. Real estate companies are racking their brains to adopt various ways to attract customers, which is actually similar to last year's wheat house swap and watermelon house swap. Developers are using various methods to find ways to acquire customer resources. But now the actual number of customers has decreased, purchasing power has weakened, causing many problems. The situation of zero down payment indicates that there are still people who buy houses, but their payment power is not strong, especially when the second-hand house transaction cools down. If the second-hand house cannot be sold, there will be financial problems in the process of exchanging for a new house. So from this perspective, zero down payment, negative down payment, and 10% down payment actually indicate that the overall circulation of the real estate market this year is not as good as imagined. Some people have some financial problems, so this method is needed to raise funds.
Industry insiders have claimed that the practice of "zero down payment" actually increases the purchasing risk of homebuyers. This practice not only amplifies the financial leverage of homebuyers, but also increases the risk of credit default. "Generally speaking, this type of zero down payment operation prolongs the time for homebuyers to pay the down payment. They first pay the deposit to lock in the property, and the remaining down payment is usually paid in full within 3 months to 1 year. However, the seemingly cheap 'zero down payment' actually does not benefit the homebuyers at all, and the amount of money that should be paid is not much, even adding credit risk to themselves."
