The growth system comes at the age of 30

Chapter 160 The Great Hayek
"Where did you get it?" Chen Jingle wondered.

Liang Cheng said: "I saw it on WeChat Moments and just forwarded it."

Chen Jingle clicked it and took a closer look——

Good guy!
The huge poster title reads: "BIGUIYUAN CITY STATES INTERNATIONAL SPECIAL SNAP-UP!"

The 98-square-meter lakeside view house, originally priced at 84 yuan, is now reduced by 20 yuan to 64 yuan after discount, which means only 6500 yuan per square meter!
"If I remember correctly, the price of the fully furnished apartments in Chengbang International is 8300-8500 per square meter, right? Has it dropped so much?"

Chen Jingle was surprised.

After all, the average house price in Jiangbei is more than 6500.

Putting aside those remote suburban properties, the original average price of the entire urban area should be between 8500 and 9000, and the average price in particularly good locations would be above 10000.

For example, the Hengda that Liangcheng bought is located in the central area of the north city. The community is large in scale, with complete surrounding infrastructure and convenient transportation. It has large supermarkets, public hospitals, public kindergartens and primary schools, etc.

The price was around 10000 at the time.

These were the data when Chen Jingle was still paying attention to the Jiangbei real estate market.

It’s definitely not there now.

The entire Jiangbei area is generally experiencing a decline, or in other words, the whole country is experiencing a decline, and Jiangbei is relatively lagging behind.

I believe everyone is clear about what has happened in the real estate market over the past year.

Even if you don't know, you should have heard of it.

Liang Cheng said: "That's what the propaganda says. You have to go to the scene to know the specific situation."

"It's probably the type with a particularly bad apartment type."

Chen Jingle thought the apartment type advertised on the poster was not very good.

Liang Cheng agreed: "I think so too."

In fact, the location of this property is extremely remote. It is located in a suburb within a suburb, in a remote corner of the mountains. It is even worse than Chen Jingle's home.

“It’s unreasonable to sell it so expensively in the first place.”

Although Chen Jingle's home is in a rural suburb, it is much closer to the city center than this City Garden.

It’s just that the market was too crazy and blind at that time, and there was no rationality at all.

Even in 2023, there are still many people who believe that the real estate industry will recover after the liberalization.

There were so many things to complain about that Chen Jingle didn't know where to start.

While housing prices are generally falling across the country, Jiangbei has refused to follow suit and cut prices for more than a year. Even some newly opened real estate projects have increased prices instead of falling, in an effort to reap the last wave of profits.

The reality is that the market will teach real estate developers how to behave.

Those newly opened properties, after a year, can’t even sell one-tenth of their sales, let alone half!
When Chen Jingle saw it, he almost laughed like a pig.

That's it?

The sales center charges 150 a day plus a barrel of peanut oil for the crowds, which may fool a lot of people, but the online signing data cannot fool people.

The truth is that the housing prices in Jiangbei can no longer hold up.

At this point, those who had previously taken over at high prices began to panic and regret.

To use an unpleasant phrase to describe the current Internet situation, when the wealth of some people does not match their IQ, this wealth will flow back to the market through other means.

People say that the masses are blind and stupid, but reason tells Chen Jingle that he should not be angry with them.

……

Chen Jingle would definitely not be interested in properties like Biguiyuan City International.

He doesn't like ordinary residential communities.

He is living comfortably in his small single-family villa now, why should he buy a commercial house and suffer?

There are no children who need to study in the city.

Not to mention that he is now lying down and has no plans to get married, it will be several years before he really gets married and has children.

According to the current development trend, by that time, when the birth population falls below 800 million per year, housing prices will definitely fall to a low point. At the same time, the number of school-age children is too small, so it is not necessary to own a house in the city to get a place in school.

Anyway, there's no rush.

Liang Cheng also looked down on it. He already had a house. He just forwarded it over to chat.

Before Chen Jingle decided to build a house in his hometown, the two of them discussed buying a house a lot.

Because buying a house is a very headache problem for contemporary young people.

No one's original dream was this, but social reality forced them to grit their teeth for a house.

If Liang Cheng and his wife’s provident fund could not cover the mortgage, he would not want to buy it.

At least I don't want to buy at a high price.

Chen Jingle shook his head: "I'm afraid that even if I lower the price, I won't be able to sell it. The current market situation is not something that can be solved by lowering the price."

With the previous experience of Hengda, who would dare to get on board now?

In this vicious cycle, if you get on board, you might end up taking over an unfinished building.

"I heard that Biguiyuan is suffering from severe losses now. Some time ago, the news said that they had problems with their capital chain. Do you think they will collapse?" Liang Cheng was very curious.

You should know that in the past two years, many leading real estate groups in the industry have gone bankrupt, and Biguiyuan is no exception.

Chen Jingle thought for a moment and said, "It's hard to say. It depends on whether the higher-ups will come to the rescue. If Biguiyuan also explodes, I'm afraid the subsequent chain reaction will be more than just a domino effect."

The subprime mortgage crisis at Western University was caused by the optimistic expectation of continued house price increases in the future, which prompted banks to expand their marketing of housing loans to residents with low credit scores, causing the real estate market bubble to grow larger and larger, eventually forming a financial tsunami that swept the world.

A soft landing means that the people will pay the price, and the people will suffer further, and the blame will be borne by those above them.

A hard landing means that the impact will spread to all other industries and the economy will suffer a complete collapse.

It's obvious which one to choose.

"I'm afraid Biguiyuan is in a state of panic right now. I read the news and saw that Biguiyuan properties in many locations are clearing out their inventory at a loss. I heard that there is too much inventory and it can't be sold at all, so they have no choice but to lower the price. As a result, as soon as the price was reduced here, the old owners there started to make a fuss." Liang Cheng was just watching the fun.

In fact, the property he bought also saw a certain drop in price, but not as much as this one.

I was feeling very painful at first, but after hearing that the old owners of this property were starting to make a fuss, I suddenly felt that my own price reduction was not unacceptable.

It turns out that happiness is created through comparison.

This is how it works when you buy at a high price. There is no other way. His parents thought that their son was going to get married and they had to buy a new house. Anyway, the housing fund can cover the mortgage.

Fortunately, he doesn't have to worry about paying off the loan, otherwise Liang Cheng would be really worried. He bought a house for more than one million yuan, and he hasn't even moved in yet, but he has lost more than 100,000 or 200,000 yuan in two years.

Scalp tingling!

Even after two years, he and Teacher Zhong might not be able to save so much money.

Sometimes I really want to hug my pillow and cry.

Liang Cheng was considered lucky, but others were not so lucky. Many lost one-third or even half of their money.

This is just Jiangbei.

In some cities where the situation is even worse, the value of the property is only 10% of what it was before.

"Hanging a banner?" Chen Jingle was surprised.

Liang Cheng replied: "No, but it is said that many people gathered at the sales office to ask for an explanation."

To say...

Chen Jingle wanted to laugh, but he was too embarrassed to do so, otherwise it would seem like he was gloating.

At the same time, I feel a little sorry for them.

To be frank, if these people hadn't bought at high prices, housing prices would have fallen long ago. It is because of their successive purchases at high prices that the housing prices have been pushed higher and higher, creating today's bubble.

They are certainly responsible.

But from the perspective of the general public, they are at most participants, not the culprits.

The culprit is the great Hayek.

It is Hayek's invisible hand that has led to the current difficult situation.

According to the theory of contradiction in dialectical materialism, the fundamental reason for the development and change of things lies not outside them but inside them, that is, internal contradictions.

Jiangbei is just a small microcosm of this situation, and similar situations are happening all over the country.

Chen Jingle couldn't help but sigh.

……

The lagging dynamics of Jiangbei's real estate market are largely due to the strong birth rate support.

As everyone knows,

Southeast Province is one of the most fertile provinces in the country, and western Guangdong is one of the most fertile places in Southeast Province.

It may be difficult for friends from other provinces to imagine that among the post-90s generation in Jiangbei, there are still many families with three or more children.

There are even five babies.

When Chen Jingle was in the provincial capital, a colleague once questioned the stereotype of Jiangbei: "I heard that people there are very fertile?"

This is the reality.

Adhering to the attitude of seeking truth from facts, Chen Jingle couldn't refute even if he wanted to.

Jiangbei is very poor, and the poorer the people here are, the more they want to have children.

For them, having children means future security, providing them with support and care when they are old.

Because the young people here have the habit of "paying household expenses".

How much I pay depends on my salary. I give my parents a sum of money every month. What we think is that it is not easy for my parents to have worked for the family for so many years. Now that I am able to earn money, it should be my turn to give back to my family and reduce their burden.

It is difficult for outsiders to understand this custom.

Behind the seemingly cultural differences is more the gap between the rich and the poor.

Who wouldn’t want to have their family give them tens or even hundreds of millions of pocket money every month after graduation?

There is no such condition!

Nam Dong Province is a wealthy province and Jiang Bei City is a poor city.

Beneath the surface that appears developed to outsiders, there is an urbanization rate that has never been raised, wages that cannot be increased, and a huge amount of rural land and rural population.

Originally, everyone was crowding into the urban area, which created the illusion of prosperity in the Jiangbei real estate market. Now it is just a return to value.

Behind the drop in housing prices, some are happy and some are sad.

This is all normal.

Chen Jingle felt that if he could no longer sustain the mortgage, he should sell the house as soon as possible to minimize the losses.

Even if it breaks a bone.

Holding the idea that "I won't lose money if I don't sell", when one day I really can't pay back the loan, I won't be able to sell it even if I want to. Even if I sell it, it won't be able to fill the huge hole.

Fortunately, Chen Jingle held back and did not choose to buy a house, otherwise he would have lost hundreds of thousands of dollars.

On the other hand, if you start now, it would be equivalent to making hundreds of thousands in two years.

How many people can save this amount in two years?

I'm afraid there are very few.

If he really wanted to buy one, the only house he could afford in the whole of Jiangbei was the villa community of Panshan Haoyuan in the north of the city.

He really doesn't like living in high-rise residential buildings from the bottom of his heart, as sound insulation when going up and down the stairs is a very serious problem.

He likes quiet.

The only property that meets this condition is a single-family villa.

The problem is that the villas in Panshan Haoyuan are too expensive, far beyond the reach of an ordinary person like him. Those who live there are either rich or noble.

Even if he can earn several million in the next few years and buy a small apartment, it is unlikely that he will use all of it to buy a house.

Not worth it.

A few million is enough for him to live a carefree life for the rest of his life. Wouldn't it be nice to travel around and eat and drink? Why must he let a house tie him down?

“I feel like there’s a high probability that I won’t have the chance to live there in this lifetime.”

Chen Jingle sighed.

(End of this chapter)