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Yanjiao, “every aspect of modern life”

October 29, 2014

konjaku: previously I covered the demolishing of two villages, Tangjialing and Liulangzhuang, which both had a large temporary population of “northern floaters,”college graduates looking for jobs in high tech firms in nearby Zhongguangcun (the Beijing silicon valley). When the Beijing government demolishes a village as part of its urban renovation plan, the villagers with permanent residency are moved to new housing with a subsidy, but the migrants must fend for themselves. Laborers have little option but to move further away from the city in search of cheap housing, but presumably the northern floaters have somewhat better options. In these posts following the real estate boom in Yanjiao, a town in Hebei just beyond the 6th ring, I am tracking a major destination for displaced northern floaters, at least the most successful ones. I have focussed on the impact of rural-urban unification on the lives of villagers, but now I am expanding this topic slightly to look at other movements on the Beijing periphery.

Yanjiao is the first choice of Northern floaters

http://bbs.tianya.cn/post-house-431944-1.shtml

2013-05-06

Since the Beijing revision of the State Council five regulations came out, putting restrictions on the real estate market [see note below], real estate developers have been increasingly turning their attention to the periphery of Beijing.

A few days ago, shortly after the real estate spring gala, this reporter discovered that Beijing sixth ring house prices has passed the important milestone of 20,000 yuan. Increasingly the tribe of northern floaters has set their sights on Yanjiao, Xianghe, and Gu’an, etc., on the periphery of Beijing. Of these Yanjiao, separated only by a river from the city proper, has excited the most interest.

On 4-20, this reporter got off the bus at Yanjiao Yanchao mingjiuchang 930 bus stop, and was immediately surrounded by 10 or 20 men, with real estate handbills, each vying with the other to press them into his hands.

this bus starts in Chaoyang, near the central business district, and after only a few stops arrives in Yanjiao

this bus starts in Chaoyang, near the central business district, and after only a few stops arrives in Yanjiao

Yanjiao is the hot place for real estate right now. “A new group offering is coming up from Shou’er Tiancheng in the fifth month. The going price at present is 8500 yuan per square meter,” the Shou’er Tiancheng salesman told me.

At the Shou’er Tiancheng model room in the sales office this reporter met Xiao Su, a prospective buyer. Xiao Su said he was an industrial worker in Beijing. It would be another two years before he would have the means to buy a residence. “A lot of my friends are coming here to Yanjiao to buy, therefore I came to have a look.” He said because of the tightening of regulations in Beijing, he had given up the hope of ever purchasing in the city. Besides, as Beijing continually expands outward, more transportation options between city and suburb will be built.

After investigating a number of Yanjiao real estate projects, this reporter found that although there are some which have gone over 10,000 yuan a square meter, many are keeping their prices attractively low, around the 8000 range. For the time being they are not being greedy, and compared to 2011 when prices were above 10,000, this is a substantial discount. Shou’er Tiancheng, a large-scale, international, intelligent, refined city, is very much worthy of consideration, priced at 8500 yuan.

A seller revealed that the aim of the low price was to attract a lot of buyers quickly, creating an effect of momentum in the market. Also, buyers who get in on the early stages can expect to see an appreciation of value to their investment. Consider another large real estate project in Yanjiao –Tianyangcheng–its first group of residential offerings entered the market at the rock bottom price of 4000 yuan per square meter, and at present those Tianyangcheng second-hand apartments are getting 8000 yuan. The first group of buyers in just several years saw their homes double in value. Although one can’t be certain how the value of Shou’er Tiancheng homes will change over time, getting in early will lessen the chance that a buyer will be stuck with unsaleable property further on down the road.
Why has Shou’er Tiancheng sold so well? Aside from the fact that it has the many resources of the Yanda Real Estate Group behind it, its internationality, as represented by “Shou’er” (Seoul), and its unique city creation concept, causes it to win many bravos and no doubts or apprehensions at all. It completely provides every aspect of modern life, from residential living to top quality work opportunities, from recreation to health services to education. All the necessary elements of a city are shrunk down to manageable size.
Note: for details of the five regulations, see:
http://news.xinhuanet.com/english/china/2013-03/01/c_124406212.htm?

Note: “In 2009 house prices top 20,000 yuan inside the 4th ring”
http://www.chinadaily.com.cn/china/2009-12/15/content_9181822.htm

燕郊 Yanjiao,
香河 Xianghe
固安 Gu’an
燕郊潮铭酒厂930车站 Yanjiao chaomingjiuchang 930 bus stop
天洋城 Tianyangcheng

 

—————-

konjaku: one year later:

http://money.msn.com.cn/house/20140410/04411678329.shtml

2014-04-10
Source: 21st Century Net

Because recently the “Beijing-Tianjin-Hebei integration” concept has heated up, home purchase prices in places like Zhuozhou have risen steeply. However in Yanjiao, which is an area rather close to Beijing, prices have actually not changed.

Since the “Beijing-Tianjin-Hebei integration” national-level strategy was issued, in a zone of 150 kilometers around the city, the real estate market has really gotten hot. However, In an area 70 kilometers from Guomao [the Beijing central business district in Chaoyang], from Tongzhou [district on the SE edge of Beijing] to Yanjiao, separated from the city only by the Chaobai River, prices have remained stable.

Yanjiao began development before other areas on the Beijing periphery, and reached the 10,000 yuan per square meter mark quite some time ago. However, as one real estate seller said, “Yanjiao prices are always half of those in Tongzhou. They directly correlate with those of Beijing.” Recently the Beijing market has been cool, and as one analyst said, “When Beijing sneezes, Yanjiao catches a cold.”

This reporter through interviews has discovered, that those marketing the large real estate development projects in Yanjiao,wittingly or unwittingly, ignore the Beijing-Tianjin-Hebei integration concept. In fact, Yanjiao has been under development long enough, that this concept will have little effect here. What they talk about the most is the impact of future transportation links to the city: the completion of the Dongxiaoying station in Tongzhou on the #6 line [slated for 2014], and the rumor of a new highway link to Xulin Road in the 6th ring [which goes to Chaoyang]. These will make the commute to Beijing more convenient.

The national highway changes to a seller’s street

Setting off from bustling Guomao on the 930 bus, heading eastward on the Jingtong expressway, after passing through Tongzhou, to go to Yanjiao the bus switches to the 102 highway. Without heavy traffic in 35 minutes we are on the edge of Yanjiao. Even before you get to Yanjiao, the scene before ones eyes is quite a shock.

f519a3ae-ba5b-4cb7-86fb-989a2e1487fb

As the bus goes through the toll station, one sees building after building which in Beijing would be characterized as “big and tall.” Getting off the bus at the Chaomingjiu stop, immediately dozens of real estate temps come rushing forward with handbills in their hands, doing their utmost to get the attention of the passengers. In fact, on both sides of the 102 highway, there are many real estate temps waving their handbills with all their effort at each passing car. If any car stops, these temps rush over and inquire if they are there to buy a residence or not. It even gets to the point that the temps frequently go out onto the highway itself to ask motorists stopped in traffic, if they want to see their model room or not.

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Apparently these real estate temps are not directly employed by anyone. For the most part they are migrant workers who have come from elsewhere. Some are Yanjiao natives. They agree to work for a certain real estate development project, to solicit customers. If they bring in 30-35 potential buyers a month, the development company gives them approximately 1000 yuan. If one of the persons they brought in completes a purchase, they receive an additional bonus. The number of this auxiliary army of real estate solicitors has grown in the last two or three years to three or four hundred.

Along both sides of the 102 highway, there are sales offices of more than 30 real estate companies. In some cases the same real estate company has three or four offices up and down both sides of the road. This two kilometer stretch of road is called by locals “real estate boulevard.” As the media has frequently reported, real estate has become Yanjiao’s main industry.

real estate boulevard

real estate boulevard

As the map shows, Yanjiao is approximately 30 kilometers from Chaoyang, 37.8 from the concentrated residential district of Daxing and 16.6 kilometers from Tiantongyuan. “It is actually closer to the CBD than Shunyi and Daxing,” one of the real estate temps said. Because it is relatively close to the CBD, and fairly inexpensive, it is very attractive to the northern floaters. Yanjiao has a population of 40,000, among which 30,000 are northern floaters who commute to Beijing to work.

Yanjiao is divided into the north city, the southern new city, and the industrial part. The north city is the most built up, with about 120 residential building projects. These belong to the “build first plan later” era. Here there is very little land left on which to build, and second hand residences go for 12000 to 13000 yuan per square meter.

At present the southern new city is being energetically developed. Now it is “plan first build afterward.” The government is investing 10 billion yuan. Huge funds will be invested to build the Wumei Wuliu park, an Aviation Museum, and an amusement park larger in scale then the Happy Valley Beijing. As for the industrial zone, at present there is only Snowflake Brewery, Huifu vegetable oil, a power plant, a sewage treatment plant, and Hanvon technology [makers of computer tablets].

Wumei Wuliu Park

Wumei Wuliu Park

This reporter visited the main sales offices of the largest of Yanjiao’s real estate development projects, Xiaweiyi lanwan [Hawaii Blue Harbor], Kongquecheng [Peacock City], Tianyangcheng, and Shou’er Tiancheng [Seoul Sweet City]. In the large main halls there were only a few customers looking at the model of buildings. In the customer reception area there were only a number of salespersons lounging around, gossiping or checking their cellphones. In all these places the number of salespersons far outnumbered the customers.

According to a real estate temp, things are actually slightly better now than at the beginning of this year, but compared to last year it is still a big change. Last year offerings typically sold out the day they were offered. Now, several months after an offering, there are still units available.

A salesperson at the model table said his development sold out quickly whenever a couple of buildings were first put on the market. However, when this reporter asked if there were still units available, the salesperson said he could take his pick.

At Shou’er Tiancheng, a salesperson said a building which had been offered just over a week ago was selling very well. However, this reporter found that its rate of sales was not that high.

Since the Spring Festival this year, the price at Shou’er Tianchaeng has not changed. Other developments show slight rises. Only Xiaweiyi lanwan [Hawaii Blue Harbor] reports a rise of 800 yuan. In any case, whether prices have risen or not, the above mentioned developments are all making shifts to accommodate the market, offering reduced down payments, loan discounts, and special offers on prices. Last weekend, a salesman informed this reporter by phone that the Xiaweiyi lanwan [Hawaii Blue Harbor] price for their newest offering was 9600 yuan.

京津冀一体化 Beijing Tianjin Hebei integration. A policy to spread the flourishing economies of Beijing and Tianjin to the relatively impoverished areas of Hebei through development

涿州 Zhuozhou. A city in Hebei

通州 Tongzhou
潮白河 Chaobai River
燕郊 Yanjiao
东小营 Dongxiaoying
徐尹路 Xulin Road
国贸 Guomao
潮酩酒 Chaomingjiu
朝阳区国贸 the CBD (Guomao) in Chaoyang
大兴 Daxing
天通苑 Tiantongyuan
物美物流园 Wumei Wuliu park
北京欢乐谷 Happy Valley Beijing
汉王科技 Hanvon technology
夏威夷蓝湾、Hawaii Blue Harbor
孔雀城 Peacock City
孔雀城英国宫 Peacock City English Palace
天洋城 Tianyangcheng

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