Hengda Launched The "Lowest Price Lock" War Developers Spring Rush To Harvest Has Been Staged

"You never know who will come first tomorrow and the accident."

In the spring of 2020, the revival of the Chinese property market was extinguished by the sudden emergence of a new coronavirus. Sales offices closed, construction sites shut down, silence, and so on, developers' cash flow was at stake.

Over the past 30 years, Chinese real estate developers have never been easy to accept their fate. Active online resumption, call for policy support, they have already taken action.

Among them, Evergrande, on the basis of "no reason to check out" before, once again threw out a combination weapon: the lowest price commitment (to May 10th) and converted it into a nationwide marketing strategy, aiming to lock in more contracts and rush ahead.

The operation of Hengda and mainstream developers, in addition to giving performance expectations to the capital market and the actual sales and returns, may depend on the price strategy after the official start up.

Developers "survival desire" vigorous

After SARS in 2003, Taobao emerged and opened up the way for the development of the electricity supplier. In 2020, telecommuting, live streaming classroom and online Kanlou mode opened again, reflecting the changes of one industry.

"No innovation or death", developers who are facing the risk of financial breakage are trying their best to sell their houses. In February 13th, Hengda launched a combination of selling houses to break the icy market.

A careful study of Hengda's strategy reveals that its essence is still a sales promotion, including four aspects, namely, deposit concessions, full staff marketing, no reason to check out, and lowest commitment.

First of all, Hengda's strategy is to lock in the purchase intention through the deposit. If it does not buy a house, the deposit can be turned into a reward or a full refund. Hengda also promises that buyers can sign the sales contract in February 13th and enjoy the lowest price lockout for the longest 88 days, that is, if the price is lowered in May 10th, the price difference can be compensated.

According to Ding Zuyu, CEO of Yi Ju enterprise group, Hengda can bring more traffic and sales. "A small amount of small amount of property buyers put into the company's huge sales can make the company's monthly sales data much better."

Another deep industry insider pointed out that Hengda could indeed pull the contract sales volume in the first quarter to make up for the decline in the 2-3 month market, which is beneficial to the performance of the capital market, but has little significance for the real repayment.

In the statistics of housing sales statistics, different caliber is different. Evergrande is the agreement that sales will be counted into sales, and the sum of sales is 20%.

In fact, there is no reason to check out, deposit payment, online sale of these flower developers are doing, such as financial creation, poly, greenbelt, new town, sunshine city, flower and so on also introduced no reason to check out, but basically limited to some projects, the deadline is mostly two months, they are not Hengda so resolute and so radical.

Hengda has always been a good developer. In the first quarter and October of last year, Hengda harvested a wave of performance through a big reduction in sales promotion. It even sold 93 billion in October last year, exceeding all single month history records.

Evergrande is also aware of the pressure faced by the market and itself. As a heavyweight three or four line developer, it has lost the peak season of returning home to the Spring Festival, and can no longer miss the next possible warmer.

In 2020, Hengda had a sales target of 650 billion, and continued to maintain a modest growth in scale. But now it can be seen that sales in 2 and March are bound to be poor and under great pressure.

The whole industry pressure can not be ignored. In the research of the 500 real estate managers, sales disruption, construction delays and cash flow pressure are the main problems that challenge the enterprises.

86% the surveyed managers said that the sales volume in the first quarter of this year will drop compared with the same period last year, and nearly 70% think that the drop will exceed 10%. 19% think that the drop will be in the 30%-50% range, and 25% think it will be cut.

In addition, nearly 70% of the surveyed managers believe that sales targets can not be achieved this year, and only 19% think they can achieve or exceed their sales targets.

Under tremendous pressure, all housing enterprises have opened the "self rescue" mode. Will the subversive innovation of the industry appear?

Anticipation of price cut in rush battle

"At present, the development of the epidemic is uncertain, and online sales are of little significance. There is no reason to withdraw from the housing market, which is not enough to attract buyers." For developers currently in full swing online sales, Central Plains real estate chief analyst Zhang Dawei is not very optimistic.

He believes that Hengda's current combination marketing effect must be combined with the price strategy after the official start up in February 20th.

The mentality of buyers is different. After reference to SARS in 2003, housing prices have been down for some time, when the whole sector is still in a long cycle of rising real estate. People who are still in the epidemic are not so optimistic about the expectations of the property market.

Xu Hui group president Raymond Lam believes that this year as a whole, real estate sales will not fall, the possibility of anti inflation is very small, in 2003 and 2020, the real estate market is completely different. He judged that if there is no strong policy support, the total volume of commercial housing sales in 2020 is likely to fall.

According to optimistic estimates, the epidemic will affect 4-5 percentage points of sales throughout the year. If it is postponed to March, it will affect about 10 points. Then the total sales volume in 2020 is likely to fall to about 15 trillion in 2018, which means that in 2019, it may become the historical peak of the real estate industry's sales.

For a single housing company, how to avoid the worst result, cash flow is the core of the problem. Many cities have begun to stabilize the market. In February 12th and February 13th, Wuxi, Xi'an, Shenzhen and Guangzhou Nansha have launched initiatives to support developers.

Among them, Wuxi has the greatest strength, loans and financial support, and the regulation of pre-sale fund supervision and so on. This is attracting attention from the perspective of capital and alleviating the urgent need of Housing enterprises.

However, for developers, the most fundamental thing is still to have sales, to withdraw cash.

Li Yujia, a researcher at the Shenzhen real estate research center, said that housing companies are now discussing the impact of the epidemic on each node of the project. The next step is to take the place, sales strategy and value distribution. After the outbreak, "seize the progress, seize the construction period and rush to sell", and replace the lost market.

Whether or not to reduce the price has become the focus of the discussion. An insider of a housing company in Shenzhen pointed out that the epidemic had amplified the competition of the industry, and that after the market was thawed, some companies could not exclude large profits.

In fact, such signs have emerged. In Hengda Zhuhai project, in addition to the deposit payment, there are 5% off other concessions; Vanke Foshan recently launched 2 sets of special rooms every night, limited time spike.

For most housing companies, what they need to do is to take out the discount of the fourth quarter of last year to see if they can get a belated "little spring".