Real estate bid farewell to the era of profit-making developers in the face of price cuts 4 kinds of mentality

Although the new year is approaching, the jubilation of this rejuvenation has not brought most joy to most developers. Premier Wen Jiabao recently published a speech on "adhere to real estate regulation", which broke the dream of many developers and the loose-looking policy did not appear on schedule. Observing the increase in stocks, financing channels blocked, developers anxious. If the tide of price cuts facing the country or will be formed, whether it will drop or not, how much? Developers have their own difficulties.

One mentality: high development costs do not want to drop down As we all know, land management accounts for a large proportion of local government revenue. The land for commercial housing is the developer’s bid through the government’s public auction. Those developers who purchase land parcels at a high price, coupled with poor management, have a reason why they can’t kill or cut prices.

Second mentality: The old owners want to drop in the face of falling prices, and now the developers are tangled, not to cut down on prices; the price cuts, if the discount rate is too large, the old owners who will attract psychological imbalances come to the theory. Moreover, now the market initiative is gradually transferred to home buyers, even if the developers cut prices, home buyers still do not appreciate, waiting to continue to wait and see the bottom, so some developers simply stabilized, not dare to easily cut prices.

Mentality III: Holding loose control and imagining a sharp drop In spite of buyers' seemingly "frustrated efforts" in the eyes of homebuyers, some developers with flirtatious ideas still imagine the price rebound after the arrival of the property market in spring. The loose words such as “rescue”, “fine-tuning”, “removal of purchase”, etc. are filled with the brains of this part of developers. They firmly believe that the time for the country to “rescue the market” will come.

Mentality 4: The relatively small financial pressure is not reduced If the regulation does not persist, then the era of extreme profits in the real estate industry may become the past. Compared to the small and medium-sized housing enterprises that have been eliminated, the branded housing enterprises have long relied on their excellent quality to make ample capital when housing prices are high. This part of the brand developers, affected by the regulation is relatively small, they not only take the prospect of buyers buying up or not buy the psychological decline, but also know that the more the trend is unknown, the more home buyers will be the same brand enterprises, since it is not yet At the moment of death, the price reduction will be discussed again every other day.

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