Home hardware to see the second and third tier cities follow the footsteps of the housing market

As we all know, home fashion is being sought after by young people, but with the continuous deepening of real estate regulation and control, the volume of second-hand housing that continues to be at freezing point has caused real estate agents to suffer a total loss in the first-tier cities. The hardware decoration that can not be ignored in the home industry has also been greatly affected. Where exactly the real estate will go, the home hardware will wait and see, and will eventually decide whether to follow.


Since the implementation of the purchase restriction order, the volume of second-hand housing has continued to be at a freezing point, making the real estate agent miserable. Take Beijing as an example. In 2011, the transaction volume of second-hand houses in Beijing was about 120,000 sets, far lower than the 260,000 sets in 2009 and the 190,000 sets in 2010. In January of this year, the number of second-hand housing transactions was 2,934 sets, which created the lowest historical record of 39 months since the comprehensive online signing in November 2008. The volume of transactions in February was affected by the Spring Festival holiday in February, a decrease of 65.4%.


“In Beijing, if the turnover of second-hand houses is less than 10,000 units per month, the intermediary industry may suffer losses in the whole industry.” Zhang Dawei, director of Beijing Zhongyuan Real Estate Market Research Department, said that in the current situation, there will be no one. Intermediary profitability is only a problem of losing money and losing money. Some chain intermediaries take measures such as closing the store, "actually stop loss."


Not only Beijing, Shanghai, Shenzhen, Wuhan, Xiamen and other cities have recently been exposed by real estate agents, and even national brand agents have completely withdrawn from a certain city.


"This is a big wave of sand-washing process. It has been better in the past two years. No matter how well you do the rules and the service is good, you can make money." Zhang Dawei said that the main cause of bankruptcy in the Beijing market is small intermediaries and couples. Although the size of the large-scale intermediary has shrunk, there is no survival pressure for the time being. Although this kind of shuffling process is painful, it is good for the development of the industry in the long run.


For the leading enterprises in the intermediary industry, the market downturn in the first-tier cities has also promoted the pace of the second and third-tier cities. It is understood that Zhongyuan, Chain Home, Weiye, I love my family and other well-known intermediaries have already achieved layout in many cities. Chain Home Real Estate announced in the second half of last year that it will raise more than RMB 4 billion in its own funds and realize the layout of 15 cities across the country within four years.


“No matter what the market macro environment is, chain homes must expand to second- and third-tier cities.” Lin Qian, vice president of Chain Real Estate, said that the layout of second- and third-tier cities can further expand the market share of chain homes. In the case of extremely poor city traffic, second- and third-tier cities are still relatively good, which also helps to spread risk. “In terms of city choice, we tend to live in cities with more customers, and investors who don’t like it generally don’t like it. The market is too volatile.”


Whether it is a second-hand linkage, involvement in commercial real estate, or seeking opportunities in second- and third-tier cities, for the real estate intermediary industry, it is inseparable from the main business lines of selling and renting. Therefore, we cannot get rid of the fate of “depending on the sky”, and the changes in market conditions and policies are crucial.


There is no transaction volume in real estate, which means that the decoration and decoration business has been sharply reduced. It is bound to have an impact on the purchase of home hardware, especially the long-term market freezing point. Following the footsteps of real estate is an important part of the development of the home hardware industry. With the layout of the second and third line markets, home hardware will also be at the forefront, and choose the direction to enter 2012.

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