Not long ago, five tens of millions of foreclosure houses in Shenzhen were snapped up, sparking heated discussions. The industry can't help but sigh, "Rich people are also picking up the leaks." Price has always been the biggest attraction of foreclosure houses. According to agen

Not long ago, five tens of millions of foreclosure houses in Shenzhen were snapped up, sparking heated discussions. The industry can't help but lament, "Rich people are also picking up the slack."

Price has always been the biggest attraction of foreclosure houses. According to agency statistics, the average discount rate for foreclosed properties in the first half of the year exceeded 30%. In fact, in the past two years, the scale of foreclosed properties has "increased," and stories of "out of the circle" transactions have also appeared frequently.

According to a recent research report by CRIC, the transaction value of residential foreclosures nationwide in 2023 will reach 150 billion yuan, a year-on-year increase of 10%. Among them, the supply of foreclosures in Sichuan, Guangdong, Henan and other provinces is at the forefront.

Compared with the national first- and second-hand housing transaction scale of more than 15 trillion yuan, the overall transaction scale of foreclosed houses is less than 1% of the total national first- and second-hand housing transactions, but its listing scale has gradually increased, which has had a negative impact on the overall transaction market had a certain impact.

Entering 2024, according to CRIC monitoring, as of August 31, the cumulative number of foreclosure houses in typical cities has reached 280,000, a year-on-year increase of 12%. In August this year alone, the number of new foreclosure auction houses reached 37,676.

Looking at the transaction rate, there were 37,676 foreclosure auctions in typical cities in August. Excluding those that have not yet been started and carried out, the effective number of auctions was 9,572, and 1,835 were sold. The average transaction rate was 19.2%, and the monthly transaction rate hit a new high for the year.

points Looking at cities, Shanghai had the highest transaction rate of foreclosed properties in August, reaching 50%, that is, half of the properties that were effectively listed for auction were sold. Shenyang, Xiamen, Chongqing, Jinan, Nanjing, Beijing and other cities also have transaction rates exceeding 30%. Among them, Chongqing had 1,158 auctions in August, with 261 effective auctions and a transaction rate of 41%.

In addition to the relatively high transaction rates in some cities, this year there are also frequent cases of "out of the circle" in the field of foreclosure properties.

For example, recently, a woman from Anhui listed 87 foreclosure houses in Changsha, involving 5 communities. Because of the large number of properties, it became a hot search. JD.com's judicial auction platform shows that these properties are currently in "pre-announcement" status and will officially start auctioning at 10:00 on September 29.

Another example is that in July, a 463.91-square-meter villa on the Chunshui Bank of OCT, Nanshan District, Shenzhen was sold for a total price of 232 million yuan, equivalent to a unit price of about 500,000 yuan/square meter, setting a new record for the unit price of a foreclosure house in Shenzhen. Total price new high. Only two buyers participated in the auction, but it attracted more than 38,000 spectators.

Kerui predicts that under the trend of continued shrinkage in the scale of primary and second-hand transactions and adjustment in housing prices, the overall transaction rate of foreclosed properties is expected to remain at a high level of around 20%. For the low total price segment with lower market popularity and higher price sensitivity, foreclosed properties will occupy a larger market share.

It is worth noting that although there is room for “missing” in foreclosure houses, the risk factors behind it cannot be ignored.

A recent article by China Great Wall Asset stated that there are several major risk factors hidden behind the low price of foreclosed properties: such as potential leasing behavior. Due to the legal principle of "sale and purchase does not break the lease", for the lease contract that is already being performed, the buyer can only obtain Home ownership is not the right to live in it; vacating a foreclosed property is also difficult in practice, consuming additional time and money; in addition, even if the property rights of a foreclosed property are transferred, it may still encounter obstruction from individual creditors.

Due to the many reasons mentioned above, although the transaction rate of foreclosure properties in some cities is relatively high, overall, there are still a large number of properties that have failed to be auctioned and have been listed again. According to incomplete statistics from CRIC, among the 280,000 foreclosure houses listed in the first eight months of 2024, there are approximately 103,000 second-hand and above houses, accounting for nearly 40%.

Lawyer Wang Yuchen suggested that before bidding for a foreclosure house, buyers must fully understand the property and eliminate related risks. "Buyers need to know as much information about the house as possible, not limited to property rights, mortgages, seizures, etc. In addition, they must view the house on site and pay attention to issues such as house usage payment and household registration. Finally, they can also inquire through the referee Paperwork and enforcement information verify whether the property is involved in other disputes.”