Recently, the real estate market in Hangzhou has once again sparked attention as several areas have seen the phenomenon of “price breaking” in the secondary housing market, where the resale price of second-hand homes is lower than the purchase price of new homes. Some landlords have even lowered their prices by up to 1 million yuan within a month, attracting market attention.
According to a report by the “Qianjiang Evening News” on September 7, “price breaking” is not a new occurrence in the Hangzhou real estate market. Currently, several areas including Guozhuang, Taoyuan, Genbei New Town, and Future Technology City have witnessed the phenomenon of “price breaking” in residential communities. A few days ago, even the popular Asian Games Village reported news of residential properties near the railway experiencing “price breaking.” The term “price breaking” originated in the stock market, indicating that the market price is lower than the issuance price.
Some properties experienced “price breaking” shortly after delivery. For instance, the recently delivered Asian Games Village, despite its high popularity, still faced a situation where both transaction volume and price declined. The Rayo City, which was delivered in June and saw 27 transactions securing the top spot in the city area in July, with transaction prices exceeding 60,000 yuan per square meter. By August, the transaction price had dropped to below 60,000 yuan, with most properties priced around 55,000 yuan, and the transaction volume decreased to 9 units.
On the Lianjia platform, there are three properties in Rayo City listed at a price as low as 48,000 yuan per square meter, with one landlord reducing the price by 1 million yuan within a month. However, agents mentioned that there is still room for negotiation for successful transactions.
As the minimum threshold for purchasing property in the core area of Hangzhou, Taoyuan is one of the most typical areas where new homes experience “price breaking.”
The Haneghang Mansion in the area was delivered in February this year, and soon after delivery, some landlords started selling their properties below the original purchase price. The refined decoration limit price for Haneghang Mansion is 34,000 yuan per square meter, but currently, the average listing price on the Lianjia platform is 33,000 yuan per square meter, lower than the new home average price. The recent average transaction price for Haneghang Mansion was only 26,000 yuan per square meter, significantly lower than during the new home period.
The Xixi Mansion, once very popular and set a record of “60,000 people shaking” in 2020, had an average price of about 28,000 yuan per square meter during the new home period. However, by August this year, the average transaction price had dropped to less than 29,000 yuan per square meter, almost on par with the new home period.
In the Genbei New Town area, the property “Yu