The regulation of the property market has a significant impact on upstream and downstream decoration and other industries

The regulation of the current round of the property market, known as "the most severe in history," has been implemented for more than a year, and various information shows that the regulation of the property market will continue to tighten this year. The reporter’s recent investigations revealed that the regulation of the property market is like pushing down the “domino”, and the impact on the relevant industries in the upper and lower reaches of real estate is also increasingly evident.

Decoration: Intensified shuffling in the industry, this year may be even more sad. “The first single business after the year, gave customers a discount of 20%. Such a price is really good enough. In the past, it basically must be traded at more than 70%.” Mr. Xie, who is doing paint business in a certain market in our city, has just received a single business in the past two days, and after several rounds of bargaining, he finally made a 40% discount for customers.

In fact, since the second half of last year, Mr. Xie has felt that business is not so good. Although the market's preferential activities were followed one after another, the sales volume of the merchants did not show any significant improvement. The National Day holiday has always been the best time for business, but last year the National Day he received received a single year-on-year reduction of 30%.

"The regulation of the property market has a direct impact on us." Mr. Xie said that fewer people buy a house and the demand for decoration naturally decreases. Due to the delivery time of housing, the impact of the regulation of the property market on the home industry is often lagging by one or two years. It can be foreseen that the days of this year will be even worse.

Even worse, due to the increase in the cost of various raw materials over the past year, the decoration business is even more difficult to do while prices are still rising. A related person from a home improvement company in the city told reporters that after the New Year's Day this year, the company’s various project prices have been fully raised, and the increase has mostly been around 5%-15%.

Nanjing Decoration Industry Management Office** Zhang Jibo introduced that under the background of regulation and regulation of the building, the competition in the decoration industry is unprecedentedly fierce, and the industry is facing a new round of reshuffling. According to the investigation, some small and medium-sized decoration companies have experienced a sharp drop in business or even closed their doors. However, there are also some brand decoration companies whose business volume is still growing at around 10%.

Furniture: Sales of plate and upholstered furniture have fallen. Some manufacturers close down the furniture industry and the decoration industry. The impact of the property market often lags behind one or two years. But now, many furniture production and sales companies have obviously felt the pressure is increasing.

According to Lin Huashan, general manager of Nanjing Jinguidian Furniture Co., Ltd., the furniture industry has entered the era of meager profits due to the combination of various factors such as the regulation of the property market and the continuous increase in prices of sponges, fabrics, leather materials and labor. Not long ago, three of the furniture production companies he knew in Nanjing shut down because they had no business. Now, many furniture companies are actually struggling. It is estimated that by the end of this year, there will be some furniture manufacturers that cannot continue to fail.

Xu Changlin, secretary-general of the Nanjing Furniture Industry Association, also stated that since last year, many home stores only had solid wood furniture because of their environmental protection, limited resources and other factors, the sales volume has always been on the rise, and sales of furniture such as plates and sofas have changed. The degree of decline.

Steel: Profits fell 30% year-on-year. Traders desperately reduced the stock market's sluggish real estate market. The upstream steel industry, which supplies raw materials for construction, was deeply affected. The profits of Nanjing steel traders also shrank.

Wu Wei, vice president of the Nanjing Iron and Steel Merchants Association and general manager of Nanjing Cross-Sea Goods Co., Ltd., said that at the beginning of this year, their profits fell by 30% compared with the same period of last year. Chen Da, general manager of Nanjing Xinrui Metal Material Co., Ltd. also told reporters that the overcapacity in the steel industry, the oversupply of supply, the overall profit of the industry does not exceed 3%, or even run out of bank interest, most trading companies are in zero profit. Or loss status. Although the profits of the steel industry are closely related to many industries, the downturn in the real estate market is definitely one of the main reasons. He believes that the steel industry has suffered heavy losses and that real estate has at least 30% of its impact.

"In order to cope with the decline in profits, everyone can only desperately reduce their inventory." Hua Wei said that traders must use a large amount of funds to stockpile goods. The cycle of buying a wave of goods and making a wave of the market takes about 1-3 months. Now the market funds are Tightly, steel prices fluctuate again and everyone dares not take too much risk. Their company's inventory has been compressed from the usual 20,000-30,000 tons to 2,000-3,000 tons.

Traders are generally not optimistic about the market outlook. The report released earlier this year by the China Iron and Steel Association also showed that in 2011, 77 large and medium-sized iron and steel enterprises across the country realized a profit reduction of 4.2 billion yuan compared to 2010, a decrease of 4.51% year-on-year. In January of this year, the domestic steel market was restrained by demand and funds and failed to achieve a good start. Based on concerns about the fall in economic growth in the first quarter and the regulation of the real estate market, the market outlook is not expected to be optimistic.

Cement: Market demand has decreased, output has dropped by about 40% Cement is another important industry in the upper reaches of real estate, and it is also subject to greater impact from the regulation of the property market.

The relevant personage of Nanjing Conch Cement Company introduces, in this company's cement business, the real estate industry accounts for about 20% - 30%. Among them, the sales volume of the most common agitated concrete declined significantly. In the past, when the market was the best, the company's annual cement production capacity could reach 2 million tons. Now, due to the downturn in the property market and slow progress of key projects such as railways, the total market demand has dropped significantly. The cement production capacity of the company can only reach about 60% of normal production capacity.

Experts in the cement industry believe that the macro environment for cement this year will enter a stage of comprehensive structural adjustment. Judging from the development trend of real estate and infrastructure, the growth rate of cement demand may decline further, but it will not be too large. In addition, the continuous imbalance of coal and electricity may lead to the continued coal shortages, electricity shortages and diesel shortages this year. The price of raw materials required for cement production may continue to rise.

Afforestation company: The greening of the residential area is greatly reduced, while the development speed of the highway landscape greening commodity house is slowing down, many developers’ funds are getting more and more nervous. Some companies engaged in residential landscaping business are increasingly difficult to do business, and it is worthwhile to find ways to explore other areas. New market.

“Our former business was mainly to do greening for the community, but it has rarely been done since last year.” According to relevant persons from the Nanjing Zhongtian Garden Construction Co., Ltd., the number of new communities has been reduced, and the greening business is naturally less. Moreover, after the developer’s funds are tight, the payment cycle is longer. Every time a business is done, the company must advance a large amount of funds in advance, which will seriously affect the rapid development of the company. To this end, the company actively adjusted its market strategy and began to attack new markets such as highway landscape greening, and achieved good results.

An industry insider of the real estate industry introduced that in the past when the property market was booming, many developers were doing a similar job with “empty gloves and white wolf”, including construction costs, material fees, renovation costs, green fees, etc. If you pay in advance, wait for the house to be sold and check out with the customer. But now the house is not good to buy, many customers do not dare to advance.

Intermediary: One month can do one or two transactions is not bad to mention the impact of the property market regulation on the second-hand housing market, the 21st century real estate Olympic Sports Center store manager Zhou Yuchun bluntly: “Now is not enough, both buyers and sellers are on the wait and see.” When the market is booming, the store can do dozens of businesses a month, but now it can be good to do one or two businesses a month.

In areas such as Ershixiang in Baixia District and near Tianrun City in Jiangbei, dozens of real estate agencies have closed earlier this year. According to statistics from industry-related agencies, there were at least 500 real estate agencies that closed down due to business bleakness last year.

Statistics on online real estate in Nanjing also show that last year a total of 39,900 sets of second-hand housing transactions were sold in Nanjing, which was a 34% drop from the 61,029 units in 2010, and a 58% drop from the 49,949 units in 2009, the lowest in three years.

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