The floor market reverses the cold situation and the key looks at the second half of the year

According to the data released by the National Bureau of Statistics on August 9, from January to July, the investment in real estate development in China totaled 3.1873 trillion yuan, a year-on-year increase of 33.6%. Compared to January-June, 32.9% had improved. Among them, residential investment was 2,278.9 billion yuan, an increase of 36.4%. The national commercial housing sales area was 52.037 million square meters, an increase of 13.6%. Among them, the area of ​​residential sales increased by 12.9%.

The floor market benefited from the warming of the property market. Since May, the floor market has been relatively flat compared to previous years due to the country’s influence on real estate control policies. Whether or not the situation can be reversed will become the key in the second half of the year. The state's control policies have been very strong, which has brought about a certain impact on the real estate market. The enthusiasm of the developers has declined, and there has been a "volatility of prices," but it has still not met the public's expectations of a sharp drop in prices. Regulation and control policies are still tight, there are no signs of relaxation, resulting in the continued increase in the wait-and-see mood of home buyers, just in the off-season in July, will soon have to usher in the traditional peak season of the property market “Golden 9 Silver Ten”, developers are most likely in 9-10 The number of pushes will be increased in the month and sales will be increased. The transaction of commercial housing will also see a significant increase. Developers have to withdraw funds, and the market is expected to form the overall pattern of “price reduction” in the next few months. Benefiting from the recovery of the real estate market, the floor market is also expected to go out of the blandness of the first three months, showing a trend of higher prices.

As the demand for floorboards continues to increase, there is still half a year left. Local governments have begun to make efforts to achieve this year’s target for the construction of affordable housing. For cities like Beijing and Shanghai, the operating rate exceeded 50% in the first half of the year, and the construction of affordable housing could reach the standard for the whole year. At the same time, the major real estate developers affected by the regulation, began to change business philosophy, focus on creating quality real estate, through the increase in project value to obtain high gross margin, hardcover concept began to spread. As the upper reaches of the flooring industry, the real estate market is experiencing another painful regulation. The initial results of the regulatory policies and the changes in the market structure are all good news for the flooring industry. In addition to rising costs of labor and raw materials, prices for solid wood flooring have been inevitable.

With the strengthening of the construction of affordable housing, and the popularity of the concept of the hardcover room, the original consumer first bought the house after the renovation, and now is the developer first renovated the house and then sold to consumers, the floor market will appear after the first purchase pattern. Moreover, the high-end demand in the first-line market has not changed, coupled with the firmness of the second-tier and third-tier markets, the rigid demand for flooring is actually increasing.