Affected by Macro-control of the government, the average price of second-hand house, which was continuously increasing since the beginning of the year, finally went down after the government promulgated the new mortgage policy. Figures from MyTopHome show that the average price of second-hand house in Guangzhou is 7,012 RMB/sqm in November, which has a decrease of 6.95% comparing to last month. Tianhe District has the sharpest decrease from 9,310 RMB/sqm last month to 7,787 RMB/sqm this month, which returns to the same level in July this year. The decrease of average price results from the decrease of transaction case for high-price house. It cannot be fully represent the current property market. The house price does not go down obviously as the figures. However, the decrease of average price does not mean that the house price decrease as well, but the decrease of transaction case indicates that the house price is much higher than what it should be. House owners should face this status rationally and estimate the value of their house objectively.

Tianhe falls sharply, while Baiyun and Huadu report a rise

Figures show that the trend of the second-hand property market is going down in November. Tianhe District, which is full of high-class properties, is the best example. The average price of second-hand house in this district fell sharply from 9,310 RMB/sqm in October to 7,787 RMB/sqm in November, which has a decrease of 16.4%. The main reason is because the transaction case in Zhujiang New City and Tianhe Bei decreases. Furthermore, Huangpu District also has a sharp fall to 5,292 RMB/sqm, which has a decrease of 11.4% comparing to last month. However, the average price in this district has a sudden increase by 1000 RMB/sqm last month, which is considered abnormal. Therefore, it does not indicate that the house price is decreasing. Baiyun District, which is noted as the priority for investors, has a fall of 5.1%. Other districts such as Yuexiu District, Liwan District and Haizhu District that have a fall are trend to be more stable with only 2%-3% decrease. The reason is that most house buyers in these districts are buy-to-live buyers.

In contrast, Baiyun District and Huadu District report a rise. After a small increase last month, the average price in Baiyun District climbs to a new peak as 6497 RMB/sqm in November, which increases by 5.1% comparing to last month. There are two transactions in Sports Garden with an average transaction price over 20,000 RMB/sqm respectively. This news is very attractive. The total transaction price for these two houses is about RMB 2-3 million respectively. It's proved that even in the bearish market, rich buyers are still pursuing scarcity houses. What's more, November is the first month in history that the house price in Huadu District breaks the point at 4,000 RMB/sqm. The reason is because many houses are transacted in Holiday Island, Huadu Majestic Garden, Lakefront Garden and Haoli Garden.

The average price is low due to few high-price houses is transacted

Although the average price of second-hand house decreases by 6.95%, we notice from the figure that the main reason is because the transaction case of high-price house decreases, but not because the sales price really goes down. Figures from MyTopHome show that, on the average transaction price, house over 8,000 RMB/sqm occupies 22.4% in November, which fell by 10% comparing to October, house over 10,000 RMB/sqm occupies 10.8%, which fell by 3.42 comparing to October. On the total transaction price, house over RMB 800,000 occupies 16.1% in November, which fell by 2.5% comparing to October, house over RMB 1 million occupies 8.2%, which fell by 2.4% comparing to October.

Experts in real estate industry said that because investors dropped out the market and many would-be buyers adopted a wait and see approach, most buyers left in the market are buy-to-live buyers. In a market with ample supply, the ability of many house buyers to accept high-price house is definitely going down. At this moment, it's hard for the house owners to sell their house with a much higher price that may exist in the future. When the speculation is discharged and the hit goes away, whether the house owner would be able to estimate the value of their house objectively is the key to sell their house successfully and soon.