Crisis What price war

Published: 16 May 2009 03:02:37

Property warmer you become the focus of recent heat. There are even claims that the economic crisis had bottomed out, the market started to recover soon.

This phenomenon led to the many authoritative volume on the property market growth in the media behind the investigation. The most concern is the "People's Daily" published in late March, said the article: A real estate to spend 50 yuan a day employment of child care lined up to buy a house. Well-known real estate blog in February that the knife in Shenzhen, there are still real estate mortgage false, the media reported the existence of state-owned enterprises in Shanghai by the Government buy housing for their employees.

What is true or otherwise, pick up the property market is a public opinion in the end game or the real deal?

"Southern Weekend" yesterday's report showed reporters the results of this survey have been: by the end of February a total to the overall statistics, has more than doubled in January, sold 20,000 suites; sustained positive in March and an increase of 80% more to reach 36,774 units. With the dismal first quarter of 2008 compared to almost doubled this year.

The report also pointed out that the three new houses in Shanghai and Shenzhen Beijing turnover than the first quarter of 2008 more than doubled, Shenzhen or even up more than twice the city in March almost all first-line close to the peak in 2007.

However, ultimately, a multi-survey showed growth in all of this is behind the transaction, the largest and most direct reason is the decline in prices. Almost all market research agencies and industry analysis of securities companies believe that increased volume of real estate property market are those "in place of price adjustment, cost-effective and real estate." Guotai Junan on in the report wrote: "The Housingprice. price effects increase the current round of policy to stimulate the promotion of a warmer; price adjustment where full volume the greater the rebound. "

I have been these two days in Hangzhou, and from a number of real estate development into the mouth of the ceramic distributors informed of such a message: Hangzhou, the domestic real estate prices has been the forefront of macroeconomic regulation and control have been several times have not cut prices. However, for the first time this has generally reduced to 10% -20%. A discount real estate prices in 75 out options, the price is about 5500 yuan / square meter and immediately traded in 280 sets of two weeks.

From the above we can see the phenomenon, the so-called warmer behind the property market, property prices are actually declining.

Of course, there are also individual developers to see the property market after reports of warmer, the excuse is based on price or prices not falling, but are rarely traded. Many cities in China, there is a downward adjustment in real estate prices are not the phenomenon of zero turnover.

This is behind the financial crisis, the so-called pick up the property market. It exposes all the economic activities of the market price changes with the objective law. Prices, has become a shadow of the real estate developers, but also as a shadow of consumers.

What I am surprised that a well-known ceramic brand dealers said in Hangzhou, to date, ceramics enterprises still have a 40% profit or more of the space. This is before I heard in Foshan 15% -20% There is a big gap. The dealer gave me cite an example: the price of a polished section in the market, selling 40 yuan / square meters, the factory has used private throwing 28 yuan to take away the price of this great single. During this period the difference is 12 million, private left the plant will be 28 yuan of profits still further extension step behind the private suppliers factory - brick factory, but also have a certain profit. The amount of profits was not specific enough, we ignored through the post at least 12 yuan can be drawn and sell 40 yuan / square meters of business profits in excess of 30% absolute, if the enterprises are large-scale production, the cost lower than private parabolic plant profits will be higher.

This is a project in Hangzhou, the price of exposed cases. Since then, we might be able to enter the low-profit enterprises are no longer spread times, no matter how kind of promotion, there is room for both. These room for only the financial sector are well known.

Although this is just a case of a product, but overall, it tells us that tile or to make money, but how much. As for high-value antique brick, profit margins may be more difficult to imagine. Particularly in China, product development and creative innovation in Italy and Spain than lower. This case is further tells us why the Chinese tiles give a feeling cheap. In fact, the prices are really in line with China's national conditions. After all, the price system and the default is the consumer-led, bottom-line profit and cost control system is the enterprises themselves are, when the two in the process of transactions to seek their own equilibrium point, and the trading volume will certainly not be any effect even the current market financial crisis. And real estate, as the first price during the crisis of the ceramic enterprises may be the opportunity to eliminate inventory first.

Once, the price war to disturb the market order ceramic industry frequently reported remarks. But this round of price wars in crisis, everyone seems to have maintained the same silence. Similarly, we should see that the price war tells us that entrepreneurs are not a fool. Real estate price is above that, even predicted that there is room for its 40 percent price reduction. Ceramic industry is the same, we have to understand that when the 3045 Nobel specifications of tiles 23 in Shanghai, the retail / films, Guangdong enterprises Similarly the same artifacts to 5 yuan in Shanghai and even the price of 4 yuan according to the sale anyway. This time, they are both smiling.

Crisis in the price war does not mean that the current grim situation, it should indicate the market is gradually transparent and standardized, real war, it should be after. Of course, this has nothing to do with the high-end brand, for the production of large-scale enterprises in Guangdong, or a signal. After all, they more than a large number of production lines and inventory.