In mainland China, the real estate market continues to decline, with house prices in areas around Nanjing like Jurong Bi Gui Yuan dropping from 13,000 RMB per square meter to 3,000 RMB per square meter. An owner in Nanchang, Jiangxi, lowered the price of their house by 300,000 RMB and felt their heart ache. People in mainland China are saying that housing prices have become a joke, with no floor in sight, only further drops.
Media personality “Xiao Ma” recently indicated that house prices in Jurong near Nanjing have plummeted from 13,000 RMB per square meter to 3,000 RMB per square meter. Potential buyers are devastated by the steep drop in prices.
Reports in Mainland media previously indicated that in 2011, advertisements for Jurong Bi Gui Yuan could be seen all over Nanjing, enticing many with prices as low as 5,000 RMB per square meter.
In 2017, house prices in Jurong soared, with Bi Gui Yuan Phoenix City reporting a record high price of 13,000 RMB per square meter, leading to excitement among early buyers who thought they hit the jackpot.
However, the glory was short-lived. By 2019, the price in Bi Gui Yuan Phoenix City had fallen back to 11,500 RMB per square meter. In February 2021, the average selling price was 9,200 RMB per square meter. Meanwhile, on Lianjia network, 2442 second-hand houses were priced at over 7,000 RMB.
“Xiao Ma” mentioned that in 2017, Bi Gui Yuan Phoenix City in Jurong was highly sought after, and many people bought houses there. But revisiting now only brings tears.
He mentioned that the price situation in Bi Gui Yuan is now unrecognizable. A friend of his shared that in surrounding areas of Nanjing, prices had soared to over 10,000 RMB per square meter. With the declining market, houses that were bought at 13,000 RMB per square meter are still sitting unsold. “With prices plummeting to over 3,000 RMB, that’s a drop of a whopping 10,000 RMB per square meter, how terrifying!”
Buyers who had purchased houses in Jurong Bi Gui Yuan were hoping to profit from investments. Since housing prices in the Nanjing city center were around 50,000 RMB per square meter, they couldn’t afford it, opting for Jurong instead. Now, they are filled with regret.
Online users are commenting that housing prices in mainland China have become a laughing stock, with no floor in sight, just continuous declines.
In a video released on the 28th by “Xiao Wang,” a self-media personality in Zhengzhou, he filmed houses in Jia Yu town to the southwest of Zhengzhou facing the lake.
He mentioned that the property was developed by Evergrande, also known as the “subway house” due to its proximity to a subway station. “These houses are 18 stories high, fully furnished, and delivered in 2014. After 2016, the prices rose, peaking in 2018-2019, with local houses reaching up to 11,000 RMB per square meter.”
“We purchased a 120-square-meter, three-bedroom apartment for over 9,000 RMB per square meter back then. We thought that when the subway was completed, it would be more convenient to travel to other parts of Zhengzhou. Everyone believed that after the subway was operational, prices would soar. But to everyone’s surprise, prices have been plummeting for years. Even after the subway was inaugurated, prices kept dropping. Second-hand houses in the area are now sold at three to four thousand RMB per square meter.”
Evergrande encountering a debt default in 2021 plunged the Chinese real estate market into crisis. With a debt of 300 billion USD, the lack of progress on debt restructuring led to bankruptcy.
Currently, several real estate companies in China are facing liquidation. According to incomplete statistics, nearly thirty real estate enterprises in China have applied for bankruptcy and liquidation by creditors.
A resident of Hunan, “Xiao Hua,” recently mentioned that due to her foreign debts, she had to sell her house in Nanchang, Jiangxi. She originally bought the house for around 1 million RMB but had to sell it for 300,000 RMB less, causing her immense distress.
The selling price was hard to accept for her, but she had no choice but to sell the house. The residential area where her house was located had an excellent environment and relatively low property fees. She purchased the house in 2018 and had finally found a peaceful home.
At that time, she was running a small business in Nanchang. But in recent years, her business suffered due to the external environment, forcing her to sell the house. After several rounds of negotiation and facing the continuous decline in housing prices, she eventually sold the house at a loss of 300,000 RMB.