Pan-home domestic market will recover in May of this year

A year ago, people in the industry predicted that “pan-family homework” would be 'last winter' for up to a year and a half. This year and a half was also the most difficult time for the pan-family home industry. Today, the difficult road has already passed halfway. By May 2013, the pan-home domestic market such as flooring will really recover completely, and will it pick up in an all-round way? The total market signs during this period indicate that this forecast is based on evidence and evidence. In the following, we will clarify from a variety of perspectives why the “May 2013 pan-home domestic sales market will recover” forecast is likely to be achieved.

A sign of warming in the flooring industry: The second-hand housing market hits record highs. The data provided by the Central Plains Group Research Center to the "First Financial Daily" shows that in October 2012, Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, and Chengdu were used as secondary houses. The price index rose for the seventh consecutive month, and the cumulative increase of each city index since March was between 3.5% and 12.0%.

Since the implementation of the property market regulation and control policy, the primary market has remained flat and the second-hand housing market has also ushered in a “winter season”. But nowadays, news of the rebound in the second-hand housing market in many regions is often seen in newspapers.

According to data from Shihua Real Estate, as of October 2012, the average price of second-hand housing transactions in Shenzhen has increased by 19%. In terms of volume, from April to September, the monthly data are rising. In September, the number of second-hand housing transactions in the city reached 8521, a record high for the year.

In addition, Beijing's second-hand housing market experienced peaks in two purchases in 2012, the first time it appeared in June and July, the second time it appeared in November, and the transaction volume in November was huge. This situation is not limited to the Beijing area. Shanghai, Nanjing, Shenyang and other cities have also entered the peak period of trading after experiencing a short period of “hibernation” in October. As of November 27, the number of signed contracts for second-hand housing in Beijing was 123,159, which was more than 121,512 units in 2011.

This shows that the entire real estate industry is still growing, second-hand housing transactions are reactivating, and there is room for growth in the pan-home market.

Signs of warming in the flooring industry II: Accelerating the pace of urbanization to stimulate domestic demand Deputy Prime Minister Li Keqiang met with the President of the World Bank on November 28, 2012, pointing out that China’s greatest potential for development in the next few decades is urbanization. His recent speeches have made urbanization an emphasis. It can be foreseen that urbanization as a long-term project will have a profound impact on economic life.

In fact, many regions have already optimized the layout of villages and improved the living space of peasants according to the general requirements of “reasonable layout, supporting facilities, complete functions, and beautiful environment”. They focused on the construction of rural community-centered villages, guided farmers to move from decentralized to moderately concentrated, and based on well-to-do housing construction and old house reconstruction projects, vigorously implemented village improvement and improvement of village appearance.

It is the real estate industry that is the first to drive urbanization. The most direct manifestation of urbanization is building houses and building more modern houses. This is undoubtedly a significant increase in business volume for real estate developers. Therefore, the real estate industry will surely usher in new opportunities in the process of urbanization in the future.

Urbanization and new rural construction will not stop. The capacity of China's building materials market and real estate market will be very large. In addition, the economic income of the peasants will increase, and the future development of the countryside will have a huge effect on the overall economy. In his speech, Li Keqiang mentioned that driving domestic demand through urban construction will undoubtedly bring a big “cake” to the pan-family industry.

Signs of warming up in the floor industry III: New renovation brings new opportunities A senior industry source stated that in the fierce changes in the market, major companies still have profitable space to dig into, in addition to refining products, integrating channels and other winning weapons. The second renovation and protection of the housing market will become a strategic highland.

Therefore, although the real estate market was hampered, the second renovation due to the improvement of demand and the decoration cycle period became the main battlefield for all businesses in 2012.

It is reported that 60% of foreign decoration comes from second-hand housing and secondary decoration. Currently in Beijing, this proportion has reached nearly 40%. This part of the source of tourists is very worthy of attention. In addition, due to changes in aesthetic tastes, the owner has a need for secondary renovation after living for several years.

It is understood that the current secondary renovation on the market has formed a new peak. Insiders pointed out that many families have entered the stage of second-time decoration or three-time renovation, and the demand for improved homes is continuously being released. This is a brand-new field that should be taken seriously. We must provide targeted solutions to serve the owners.