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Behind 1.28 billion sale of Sedant ZiQue Property

2015-12-17 01:46:23 ·

an abstract from China Network

The first openingof Sedant Property is welcomed with a sale of 1.28 billion! It is like a black horse running into the real estate market. In June, Sedant continued to lead the luxury real estate market in sale in Beijing, and listed as number one with a sale of 154 million for the first week. Regarding this phenomenon, many real estate experts have their own opinions.

Vice President Zhang Xuedong in charge of media of The Beijing News

Location+Facility establishes a system of multiple values

The more closer to the core area of the city the property is, the more resources it can get, in this way, it will attract more high-end property buyers. With the expanding of Beijing city, there is almost no new real property within the 3rd or 4th ring, many luxury real property are around the 4th or even 5th ring. Sedant is located in AnDingmen, north area of the 2nd ring, which is quite rare in location. At the same time, this area has a profound cultural background, a lot of state-owned companies are located in this area with a pool of excellent talentsand well-known companies and institutes. This is the key attraction for high-end property buyers.

”Sedant ZiQue is surrounded with abundant education and medical care resources. In aspect of education resources, Sedant is surrounded with key schools like 171 middle school and DiTan Primary School. In addition with parks like Ditan Park, Sedant has multiple values both as a luxury real property and a park property. With the support of a system of multiple values, we have seen market recognition of this project. It’s quite observable that the sale for the first opening reached 1.28 billion RMB, which has proved the value of this project.

Chief Editor GanFang of Real Estate Weekly of Beijing Evening News

Practicality is the absolute principle

The rigid need to get married, have children and go to school is the basic reason that is deciding whether a family will buy a real property, because it’s directly related with the life of the ordinary family. If these three needs can be satisfied in one property, it will be the best choice. Since there not so many buildings like this, Sedant ZiQueproperty is like an opportunity you cannot engineer. Thus it’s natural that it will become a hot property to buy. Although there is some curriculum about Sedant, still it’s snapped up. 1.28 billion RMB has its worth, because Location plus School District is the biggest attraction.

Location plus School District has its advantages. In aspect of construction, its newer than all the second-hand property; in aspect of total area and price, its suitable for the daily living of ordinary families. It has both the advantages for living and investment, which is the best description for Sedant ZiQue.

Deputy Editor LuHuan in charge of Real Estate Sector of Beijing Times

Both Product and Location are needed

The quality is good, the fine decoration and the 2700m2 garden on top of the buildings are impressive, however, would it be sold at an average price of 70000RMB/ m2 if it’s not located within the north area of 2nd ring or not surrounded by Ditan Garden and 171 Middle School?

According to statistics of Yahao agency, until now, totally 162 top luxury residences have been sold,and the price of each residence is more than 30 million RMB. For a whole year of 2014, 173 residences were sold, which is basically equal to the amount sold in 5 months in 2015. This year, 108 luxury residences have been sold andthe price for each residence is more than 50 million RMB, which is a historical high point in the history. Although the supply of high-end luxury property is at a peak level, and the market demand is growing, but who will laugh to the end? The basic is location, quality, and a reasonable price. Once the customers feel it’s worth the price, then success will come.

Chief Editor WangJia of SouHu Focus Network

Location and Decoration are Impeccable

There are not so many new properties within the 4th ring of Beijing, and it’s even rare to see any new properties within the 3rd ring. There are few properties for sale like Sedant ZiQue, DiaoYutai and XiChengYuanZhu. DiaoYutiai Property is coming to the market soon and it’s located in the south end of the 3rd ring, with a unit price of 48000 RMB/㎡, and it’s expected that it’s price in the future will break through 10000RMB/㎡. XiCheng property is already open with a unit price of 100000 RMB/㎡. It’s expected that the average price within the 4th ring will reach 100000 RMB/㎡ in 2 or 3 years. Thus Sedant which got the land earlier has it’s advantages in price.

We have to say that existing properties have become the standard for the sale of high-end properties. As the closest project to the core area of Beijing, Sedant has cost more time and money, the decoration for the first phase has reached 15000RMB/㎡ and all the brands used are among the global top 500. The decoration standard, the intelligence security, and the fresh air system are at the same level as the top luxury properties in Beijing, or ever higher.

Chief Market Analyst Zhang Dawei of Centaline Property

There is a reason for a higher price of ZiJue.

analysis

1，There is a trend that commercial properties in Beijing are becoming more high-end oriented. The property supply concerning the rigid need of the people is becoming less, and the high-end projects are growing in amount, because of which it is difficult to see a large scale sale.

2， Price and cost are not balanced. Although the market is becoming better, however, there is no standard for pricing. For example, a property in Sunhe district has reached a price of 220 thousand RMB/㎡, and we have also seen a highest price of 80 thousand RMB/㎡ in Tongzhou area.

With a price of only about 80 thousands RMB/m2 within the 2nd ring in Beijing, Sedant property will certainly attract investments.

Supporting points

1， Judging from the market in Beijing, the total amount of existing units on sale with property certificate within the 3rd ring is 1875, among which more than 800 units have been reserved for companies or for payment of land tax, which will not go to the market for the moment.

There will be no more than 1000 units within the 3rd ring in future.

2， From the aspect of land supply, there is only one piece of land for residence use within the 2nd ring in recent 3 years, which accounts only 0.16%. For Huajia property, most of the land will be used for the original households. That means the supply of land within the 2nd ring in Beijing is very rare, its almost zero supply.

3， Shengde ZiQue is located in AnDingmen, in north end of the second ring , which is well known as a place that resembles the spirit of Beijing the most. The transportation is convenient with a network of two horizontal lines, three transverse lines and four vertical lines. The property area is surrounded with education resources all the parents in China want, including 171 Middle School, HongZhi Middle School, DiTan Primary School, QingNianhu Primary School, etc.

Investment suggestion

At any time, location decides everything, location is the first thing to consider when deciding to buy a real property. No single one has the ability to change the high price, it’s not reasonable to always expect a higher price or a lower price. It’s important to seize the opportunity to buy depending on the loan interest.