Real Estate deal is a long journey, I am still along the way, after government put strictest regulation on the market since Mar. 17th 2017, which dramatically raised the tax burden for the transaction and limitation for the loan.
In 2017, as the transaction is no longer active(reduced 70% YTY), the price is then stuck for the whole year. Compared to the top of 2017, most quotation of apartment dropped 10-20% by the end of 2017.
For my personal example, compared with my first contact with the targeting apartment owner, the quotation indeed dropped 20%, but I am facing the same problem, because I have to sell my own apartment to get the enough money to afford the new one, as well as with some bank loan. I’ve reduced my quotation of my apartment for 2 times, but there are still few buyers to contact with me, the main reason behind this, which I discussed with my agent, is the tax burden, it is really high for both buyer and seller, for my case, it is close to 20% amount of my apartment at most.
In practice, many Chinese family would circumvent this tax burden by divorce（I won’t address the technical detail here）, then after the transaction,get married again, but this is not the way my family want to take or the line we will cross, so just wait and see. BTW, the divorce ratio in Beijing is approximately 40% last year（Top one in China，averaged 30% countrywide ）, and I think the fake divorce for transaction attribute to some of the data.
As I mentioned previously, the real estate agent in China is not a full representative for one party, buyer or seller, rather than manage to make the deal for both, so I can’t only count on the agent for my own benefit, I have to make some analysis and make decision which is tough and hard for an ammeter like me to prevent from cheating and tricks.
As approaching to the lunar new year festival, the potential buyer for my apartment would reduce over time, so I have to expect the transaction could happen after Mar 2018, what an anxiety new year!