Recently, in the midst of China’s worsening economy and a real estate market collapse, properties in various locations are plummeting to “cabbage prices.” One such case that caught the attention of netizens involved a woman from Henan Province who spent 80,000 RMB to purchase a seaside house in Rongcheng, Weihai, Shandong through online shopping, sparking discussions online.
On November 22nd, the topic of “Woman claims her husband spent 80,000 RMB on a 70-square-meter seaside house online” quickly trended on social media.
A netizen from Henan Province posted a video claiming that her husband purchased a seaside house in Rongcheng, Weihai, Shandong for 80,000 RMB through an online auction platform. They had never been to Rongcheng before and decided to visit in person to see the house they had bought.
Subsequently, the netizen posted another video revealing that she and her husband made a decision to drive over 900 kilometers from Henan to see the seaside house they had purchased in Rongcheng, Weihai in person.
Some netizens expressed skepticism, suggesting that the 80,000 RMB purchase of the seaside house might be a scam. The netizen responded in a video, explaining that the large payment made online was completed without a password, stating, “Just scanning the face can complete the payment, no need to enter a password.”
She also mentioned that the starting price of the house was 1111 RMB, with bidding increments of over a hundred RMB, but suddenly increased by an additional 50,000 RMB. This led her to question the credibility of the online auction platform.
She indicated that the seaside house has been successfully transferred to them, describing it as a two-bedroom, 70-square-meter property located on the fourth floor of a multi-level building without an elevator or heating system. She recorded the interior of the house and commented that it appeared relatively clean despite being built in 2006.
Further research revealed that the seaside house purchased by the netizen for 80,000 RMB is located in a somewhat remote eastern part of Yintan, consisting mostly of six-story stair-step buildings, with the ground floor serving as a garage. Most residents only visit the seaside for vacation during the summer.
Currently, several Yintan seaside houses are up for auction, with sizes ranging mostly from 50 to 100 square meters and starting prices around 10,000 RMB.
One similar house type to the one purchased by the netizen has a starting price of 10,888 RMB, a deposit of 12,000 RMB, and a bidding increment of 100 RMB or multiples. However, there have been no bidders yet.
On November 22nd, a journalist from Jímù News consulted several local real estate agencies in Rongcheng. A property consultant mentioned that the 80,000 RMB purchase of a local seaside house by the Henan netizen is considered a normal price in Rongcheng.
He explained that most residential buildings near the beach in Rongcheng were constructed around 2010, with second-hand housing on the first to the third floors priced at around 2,000 to 3,000 RMB per square meter. The fifth to sixth-floor units are generally priced at just over 1,000 RMB, while attic apartments are even cheaper.
Regarding the issue of “cabbage prices” for properties in Rongcheng, the consultant clarified that as a tourist city, most residents near the beach are vacationers who come to escape the summer heat, leaving in winter, resulting in relatively low property prices.
In fact, a few years ago, Hegang City in Heilongjiang Province attracted many out-of-towners to settle down due to the low property prices. A report from mainland media in November mentioned that many of these out-of-town property owners in Hegang are now evacuating, posting “urgent sale” signs in the chilly wind.
The report indicated that the exodus began in 2023, with at least half of the initial property buyers now gone. The high heating costs, nearing 1,000 RMB per month, despite the low local property prices, were cited as a major reason for the exodus.
Furthermore, Tianjin, once filled with state-owned enterprises and a booming real estate market, is now deeply entrenched in an overall collapse of the property market.
Several local self-media bloggers recently revealed on social media platforms that some formerly million-dollar luxury homes in Tianjin are now being sold for “cabbage prices.”
The challenges faced by the people in Tianjin are considered a microcosm of China’s real estate market, with plummeting property prices, a stagnant market, and vacant commercial properties. Many individuals are burdened with massive mortgage debts. As the property market crisis worsens, risks for banks and other financial institutions are also becoming increasingly apparent, impacting various aspects of Chinese society.