What does the phenomenon of house price inversion mean?

What does the inversion of house prices mean?

The price of second-hand houses is more expensive than the price of new first-hand houses, and houses in the suburbs are more expensive than houses in the city. If house prices cannot be suppressed, there is a possibility of a retaliatory rebound

What does price inversion mean?

Price inversion refers to the phenomenon that the sales price of the same agricultural product is lower than the purchase price at the same time.

In China, this is a special price policy formulated by the state. In order to take care of farmers' interests and mobilize farmers' enthusiasm for production, the state has increased the purchase price of agricultural products. But in order not to affect the lives of urban workers or promote the development of industrial production. The sales price will not be increased for the time being. Once the increase in the purchase price exceeds the difference between the purchase and sale price, an inversion will occur. The amount of purchase and sale price inversion will be subsidized by the state finance.

China's policy of inverting production and sales prices began in the 1950s, starting with agricultural production materials. By the 1960s, it was gradually expanded to include some agricultural production materials and a small number of daily industrial products, including agricultural machinery, fertilizers, pesticides, agricultural diesel, coal for civilian use, soap, washing powder, light bulbs, etc. In the late 1980s, the price inversion of industrial products was gradually cancelled. By 1990, only coal and fertilizers were used by civilians, and the state also provided certain financial subsidies to production and operation departments.

The inversion of production and sales prices has played a certain positive role in promoting farmers to change their production methods, promoting mechanization and modernization, and stabilizing the lives of urban and rural residents. But this is actually achieved by reducing the profits of enterprises producing agricultural production means and daily necessities industrial products, or causing them to suffer losses. The result is unfavorable to the development of the agricultural production means and daily necessities industrial products industry. At the same time, it conceals the true cost of the product and the price comparison relationship of related products, causing product price confusion, increasing the difficulty of corporate accounting and price management, and even covering up poor business management, making it impossible to correctly evaluate the company's operating results and corporate management level.

What does the price inversion of first- and second-hand houses mean?

Price inversion means that the buying price in the circulation field is greater than the selling price. In layman's terms, it means that the market price is lower than the ex-factory price.

How to treat the inversion of primary and second-hand housing prices

The inversion of primary and secondary housing prices is an inevitable product of the economic market. Land, as a non-renewable resource, with the continuous development of the real estate certificate market and the urbanization As the process of globalization accelerates, its scarcity becomes more and more prominent, which also makes the location of land more and more important. Some second-hand houses rely on their location advantages and the brilliance of transportation, humanities, environment and other factors to make their value continue to rise. The increasingly remote locations of new properties, as well as the flaws in various facilities and environments in newly built areas, make it normal for prices to be lower than some second-hand properties.

How to treat the phenomenon of inverted housing prices in primary and second-hand markets

Look at the business scope and review whether their business scope includes the business you entrusted with consulting. If you do not get permission from the industrial and commercial administration department, feel free to Expanding the scope of business is also not credible.

Look at the scale of the business, examine the number of employees, whether they have branches, branch offices, etc.

Look at the business premises and examine whether their business premises are formal and fixed. If they just share a room with a few tables and want to run away at any time, it's better to avoid talking about it.

Look at the professional level and examine whether they have high quality and rich case handling experience, such as the number of successful cases, etc.

Look at word-of-mouth image and review whether they have been complained or sued.

What does the inversion of second-hand house prices and first-hand houses reflect?

The price inversion of first-hand and second-hand houses actually means that the transaction price per square meter of second-hand houses in the same area is higher than that of first-hand houses under construction. house. In fact, there are two reasons why the price of primary and second-hand housing is upside down: first, developers have reformulated their pricing strategies to make them in line with market conditions out of consideration of market supply and demand; second, the change in residents’ consumption awareness. From the original one-sided situation of the first-hand housing market to a rational housing consumption demand, more consideration is given to the convenience and benefits brought by second-hand housing.

What are the concepts of commercial-residential inversion, housing rental-to-sale price ratio, and house price-to-income ratio?

To put it simply, the inversion of commercial and residential properties means that in the same real estate area, residential prices are higher than those of commercial properties. , "rent-to-sale ratio" refers to the ratio between the monthly rent per square meter and the selling price per square meter. The rent-to-sale ratio of houses is one of the internationally accepted important indicators for judging whether there is a bubble in the property market. Currently, the internationally recognized ideal rental-to-sale ratio is between 1:200 and 1:100. According to the results of sample surveys in 70 cities, in the first half of this year, the national housing rental-to-sales ratio has been lower than 1:400. Even in Beijing, where the rental market demand is strong, the housing rental-to-sales ratio has reached 1:325, which is far lower than the ideal The lower limit of the level. "House price-to-income ratio" refers to the ratio of the average housing price in a region to the average annual household income. It is generally used internationally to measure the rationality of housing prices and the actual purchasing power of consumers. The larger the ratio, the lower the household's affordability for housing. Based on international practice, it is generally accepted that the housing price-to-income ratio in my country is between 3 and 6 times, while the current price-to-income ratio in the United States is about 3 times. According to data from the National Development and Reform Commission, the national housing price-to-income ratio was approximately 7.4 in 2007, including 13.6 in Beijing and 9.8 in Shanghai. The housing price-to-income ratio refers to the ratio of housing prices to the annual income of urban residents. The internationally accepted method of calculating the house price-to-income ratio is to divide the median housing price by the median annual household income.

Annual household income refers to the annual pre-tax income of all family members, usually including the couple. Annual household income is also taken as the median. In developed countries, calculating annual household income is very clear just by looking at tax records, but in China the situation is much more complicated.

According to international practice, it is generally accepted that the housing price-to-income ratio is between 3 and 6 times as a reasonable range. If housing loan factors are taken into account, the proportion of housing consumption in residents' income should be lower than 30.

The housing price-to-income ratio in various cities in our country is unbalanced. The housing price-to-income ratio in small and medium-sized cities is more than six times, which belongs to the category of excessively high housing prices. According to the survey, the housing price-to-income ratio in most large and medium-sized cities across the country is More than 6 times, with the ratios in Beijing, Shenyang, Guiyang, Nanjing, Guangzhou, Dalian and Xi'an all exceeding 20 or even higher.

The house price-to-income ratio is a concept with strict connotations. When applying it specifically, attention should be paid to the circumstances under which it is the house price-to-income ratio. In the West, the housing price-to-income ratio includes newly built residences (new house transactions) and existing residences (second-hand house transactions). The selected house price is the median price, and the household income is the median income. Since China's residential properties are traded based on square meters rather than units, and because the income included in China's household income statistics is only a part of the total household income, even in relatively developed cities like Beijing, the housing price-to-income ratio is There are also great differences in the calculation results, which makes horizontal comparison more difficult.

What is "house price upside down" on Ctrip.com?

(Same hotel, same room type, same check-in time) The retail price or promotional price listed at the hotel front desk is lower than the Ctrip member booking price. This is called "price inversion".

What does it mean to have room upside down on OTA?

Upside down: refers to the online platform price of the same room type given by the hotel to OTA during the same time period (including service fees, breakfast, gifts and other conditions) is higher than the hotel's front desk execution price. The execution price includes but is not limited to hotel front desk preferential prices, hotel website prices, Internet sales prices in any channel and member promotion prices, etc., except for prices for customers who are not companies in the same industry. .

Hope you adopt it!

What does commercial and residential housing upside down mean?

Commercial housing is cheaper than residential housing, which happens in some places where housing is highly speculated.