In the past two days, a shocking news has come out of China's top luxury market:
A new house with a total price of 206 million has been successfully signed online!
This set of online signature transaction records exceeding 200 million was actually created by the low-key Guangzhou!
Maybe many people have no concept of pure numbers. Let me say this so that everyone can understand it better:
This is the new home market in China (Mainland). This year, the first online luxury home has exceeded 200 million!
Thatâs right, other first-tier cities including Beijing, Shanghai and Shenzhen have no record of first-hand market online signing at this price. According to
data, the top property with a transaction volume of RMB 206 million was a duplex with an area of ââ1,260 square meters in No. 5, Xinghewan Peninsula. This year, two houses with a total price of more than 200 million were signed online for courtyard houses in Beijing and old Western-style buildings in Shanghai, but they were in the second-hand market.
The first-hand market online signing price exceeded 200 million. This is truly the first and first online signing of new houses in China created by Guangzhou! (The above data comes from CRIC and China Index Academy)
Real picture of Galaxy Bay¡Peninsula No. 5
01
The threshold for asset allocation by Chinaâs super rich has jumped to 200 million
As I write this, a word pops up in my mind instantly, called:
jumped. What does
mean? This is the threshold for China's super luxury homes, or the starting point for wealthy people's asset allocation. During the so-called "economic winter", it has jumped again.
Think about it, 20 years ago, people's understanding of the order of magnitude of luxury homes was "million-level" . At that time, owning a house with a total price of two to three million was definitely a wealthy person.
By 10 years ago, this threshold had jumped to "tens of millions" . At that time, the price of a house could reach 20 to 30 million, which was almost the ceiling of ordinary people's imagination.
In the past two or three years, this threshold has jumped to "100 million yuan level" . If a house is less than 100 million yuan, it seems difficult to describe it as a super mansion, and it is difficult for ordinary people to scream.
Now, this threshold has quietly reached to 200 million .
In just about 20 years, the threshold for super luxury homes in China has jumped 100 times!
02
Super rich and super luxury homes, exponential growth
Why does the threshold for asset allocation of China's rich keep rising again and again?
I think this has a lot to do with the exponential growth of the total wealth of the whole society.
data shows that around 2000, Chinaâs m2 (broad money supply) was only about 10 trillion .
This year, it only takes 15.8 billion to become the richest man in China, and it only takes 500 million to rank among the top 100 richest people in China.
By 2012, China's m2 jumped to about 100 trillion , an increase of nearly 10 times.
This year, the threshold for becoming the richest man in China was raised to 80 billion yuan, and the threshold for ranking in the top 100 richest people was jumped to 10.5 billion yuan.
By 2024, China's m2 will exceed 300 trillion , surpassing the U.S. dollar and euro combined, making it the world's largest currency stock country.
This year, the threshold for becoming the richest man in China was 450 billion yuan, while the threshold for ranking among the top 100 richest people jumped to 45 billion yuan.
It can be seen that in the past 20 years, both the threshold for the richest man in China and the total wealth of the entire society have shown an exponential growth trend. This fundamentally determines the threshold for super luxury homes, which must follow the exponential jump.
The net worth of the super rich and the threshold of super luxury houses are a game that never stops.
has written this, and we can roughly draw a conclusion. As long as the total wealth of Chinese society continues to grow, the starting point of asset allocation for the wealthy class, and the threshold for super luxury homes, will continue to rise. This is a time when you are chasing after each other, and never Game of pauses.
Even if you are in the wealthy class, you cannot be completely flat. You can only keep upgrading your assets with the tide of the times.
03
Luxury homes and luxury goods, out of the "independent market"
Of course, some people will definitely ask, the current real estate market environment is still cold, why can super luxury houses out of the "independent market"?
Friends who know the luxury goods industry should understand this phenomenon well.
In the first quarter of this year, affected by the economic environment, sales of LVMH Group and Kering Group both declined, but this also accelerated the pace of price increases across the board for luxury goods.
Since this year, chanel and gucci have increased by about 15%, Chanel classic series has increased by 25%, and top luxury LV has increased twice in a row in 3 months, with an increase of up to 30%!
Generally speaking, regardless of the economic environment, luxury goods prices will be adjusted 1-2 times a year to maintain brand value and scarcity. Unlike ordinary commodities, luxury goods need to provide unique identity value and emotional value.
The logic of super luxury homes is similar to that of luxury goods.
Warren Buffettâs partner Charlie Munger has a famous saying: I would rather buy a great company at a high price than a mediocre company at a cheap price.
Mungerâs words can reflect the investment logic and consumption logic of the super rich.
04
is too low-key! Guangzhou is actually the city with the largest supply of new houses worth over 200 million yuan.
Letâs go back to the topic at the beginning of this article. Why was the first new house with over 200 million yuan signed online first born in Guangzhou?
analysis believes that this has a lot to do with the booming supply and demand of super luxury homes in Guangzhou. On the one hand, Guangzhou is likely to be the city with the largest supply of 200 million+ new homes in China (Mainland) today. No. 5 of Galaxy Bay Peninsula alone has There are over 60 duplex units with a total value of over 10 billion.
On the other hand, the supply of Qianping duplex coincides with a good time for industrial giants to flock to Guangzhou.
Let me show you some data first:
The first data is . Recently we wrote an article "Which city are the bosses flowing to?" First in Guangzhou, second in Beijing, and third in Shenzhen.â
In 2023, Guangzhou will have 369,700 newly registered companies, with a net increase of 198,100 companies, both ranking first in the country. It will be the city with the strongest adsorption capacity for business owners in 2023.
Do you understand? Guangzhou is the city with the largest influx of bosses in the past year.
The second data , after the central bank strengthened the supervision of "idle funds", the "capacity to attract money" of Chinese cities is also undergoing subtle changes.
At the beginning of June, we also wrote an article "In 2024, where is China's money flowing?" "Shanghai ranks first, Guangzhou ranks second", Since the beginning of this year (January to May), Guangzhou's total capital has increased by 512.2 billion yuan, the increase is second only to Shanghai, and far exceeds the growth of Beijing, Shenzhen, Hangzhou, Chongqing and other cities. In terms of volume, it will be the city with the second strongest ability to attract money in 2024.
Benefiting from this, Guangzhouâs local and foreign currency deposits (total funds) have reached 9.18 trillion yuan, making it one of the four largest 9 trillion cities in China. What is the total amount of funds for
? Simply put, it is the âmoney in the accountâ of a city.
Guangzhou has 9.18 trillion yuan in its "account". What is the concept? Guangzhouâs urban tonnage, urban status, and urban heritage are obvious.
The third data , according to the "China Unicorn Enterprise Development Report (2024)", Guangzhou has a total of 21 unicorns on the list, with a total valuation of US$116.38 billion, surpassing Shenzhen (US$114.64 billion) for the first time.
Unicorns represent the future competitiveness of a city and are a magical species that can "create wealth in batches." A city with many unicorns must be a wealthy city where new money gathers.
As shown above, whether we look at the mainstream trends of enterprises, capital flows, or unicorn flows, since 2024, China's wealthy people and their capital have been flowing into Guangzhou in a large scale.
This trend is highly consistent with the frequent large-scale transactions of luxury homes in Guangzhou this year.
Guangzhou, a leafy first-tier city, is really low-key!
