Beijing School District Housing Transactions Another Boom

In May 2020, there was another boom in housing transactions in Beijing's school district.

In April 30th, as the "Educational Highland" of Beijing, Xicheng District issued a new regulation of educational reform. The new home buyers' enrollment was changed from "single school scribing" to "multi school dicing". A school district room, in principle, will only provide a registration and admission degree within six years. Xicheng District has also become the last area to implement "multi school dicing" in the "six districts of Beijing".

Because the new regulation mainly faces the children of school age who move to Xicheng District after July 31st, from May to July, many people regard it as the last opportunity to get on the bus.

Since May, the volume of commercial housing in Xicheng District of Beijing has increased significantly, especially in Desheng, Financial Street and other popular areas. Take the Desheng district famous school district housing area "Yu Zhong Li" and "Yu Middle East" as an example, there are real estate brokers that the average monthly turnover of these two communities is only about 10 sets, but more than 50 units have been sold in the first half of 5.

For many years, the school district housing has been dominating the "Pyramid tip" of the housing system. Because the best educational resources are matched, the supply of quality school districts is often scarce. Due to historical reasons, many school districts are old and small, with poor living conditions and high prices.

In recent years, Beijing has been promoting the balanced reform of basic education, and at the same time taking various measures, such as cancelling the admission qualification of aisle house, garage room and empty holder, so as to encirclement loopholes in policy. But for a long time, the enthusiasm of the buyers to the school district room is increasing.

Nowadays, with the constant regulation of housing transactions and the continuous deepening of educational reform, this situation has long ceased to exist. There is also a view that after the implementation of multi school dicing in Xicheng District, the enthusiasm of Beijing school district will soon become a history.

But the reality is that the expectation of children and the scarcity of high-quality educational resources will remain for a long time. Through the carding of the development context, can the school district room, the invisible binding of countless parents, really become a history?

From welfare housing distribution to value emerging

The concept of school district housing is born out of the policy of "near school".

In 1986, the fourth session of the Sixth National People's Congress adopted the "law of the People's Republic of China on compulsory education" (hereinafter referred to as the "Compulsory Education Law"), of which ninth clearly stated: "local people's governments at all levels should set up schools for primary and junior high schools, so that children and adolescents can enter schools nearby."

But Chen Zhixiang, vice president and Secretary General of Beijing Real Estate Association, said in twenty-first Century economic report that at that time, there was only the concept of "key school", and there was no concept of "School District Housing".

Chen Zhi said that in the 80s and 90s of last century, Beijing's urban development was not as huge and extensive as it is today. At that time, the core area of the city was mainly confined to today's Second Ring Road, which is roughly equivalent to the zoning area of Dongcheng and Xicheng two districts.

At that time, all kinds of urban resources, including education, were mainly concentrated in the core area. However, due to the small population size and low mobility, the scarcity of quality education resources was not obvious.

Since then, Beijing has entered a period of rapid development, with the expansion of urban areas and population growth. However, due to various reasons, the distribution pattern of high-quality educational resources has not changed much. Nowadays, Dongcheng and Xicheng District two have good educational resources because of their historical tradition. Relying on the advantages of universities and research institutes, Haidian has the same quality of educational resources. The other regions are catching up with the economy, population and industry, but the level of quality education resources they still have is obviously not as good as the above three areas.

Chen Zhi also said that before the housing reform started in 1998, there was almost no real commercial housing transaction in Beijing. At that time, the so-called "School District Housing" was mostly divided into units, or old cottages, and could not flow in the market.

When the housing reform was made, the value of these houses was the first time, but the added value of the "school district" was still not obvious. In the Huang Zhuang area of Haidian, Beijing, a small apartment school district in Zhongguancun is priced at 120 thousand yuan. According to the owner, the house was originally divided into units. When the housing reform in 90s of last century, it was bought at a price of 3000 yuan / square meter. "At that time, I didn't think about school at all, because I had lived there for several years, and I used to live there, so I bought it hand in hand."

Today, the price of the house has been doubled over 50 times, and it is one of the most prosperous areas in the region, which was rather old in 80s.

Not only faster appreciation, but also resistance to fall

In twenty-first Century, Xiong Bingqi, vice president of Education Research Institute, said that the concept of "school district room" really sprung up in 2006. In the same year, the revised Compulsory Education Law promulgated the principle of "going to school nearby".

Prior to this, in order to curb some parents' "school choice" impulses, the State Education Commission issued a series of documents since 90s of last century, emphasizing that nine years compulsory education should adhere to the principle of near school and no school choice students. At the same time, it is strictly prohibited to link donations to the students.

At that time, the equalization of basic education was the focus of policy, but the differences in educational level among different regions still could not be smoothed out in the short term. Coupled with the rapid expansion of Beijing's urban scale and population growth, the demand for educational resources has greatly increased.

By 2014, Beijing began implementing the 9 year old system of education reform and alleviated the pressure of school choice through the junior helicopter system.

Against this background, the importance of "School District Housing" is constantly highlighting and prices continue to rise.

Since the beginning of this century, the quality school districts in Beijing have enjoyed the treatment of "the emperor's daughter is not worried about getting married." A senior employee of chain home real estate told the twenty-first Century economic report that in the past more than 10 years, the price of school district housing has been significantly higher than that of other commercial housing lots. The price difference has risen from the initial 10% to 30% and 40% today. But the school district room is still one of the lowest prices and the shortest trading cycle.

He said that in 2009, Beijing, Haidian District, Zhongguancun, Wudaokou, Xueyuan Road and other regions, the supply and demand ratio of the school district room is 1:4 to 1:5 level. Today, the gap between supply and demand in these areas is even greater. But whether it is new commercial housing or old public housing, parents are concerned about the object.

In the sale of new houses, the "school district" has also become an important selling point. Some real estate projects claim to introduce quality schools and set a higher price for the project. For many years, complaints caused by failing to fulfil the promise of "introducing schools" are not uncommon, but this also reflects the fever of school districts.

An analyst who does not want to be named thinks that the traditional "little spring" of the property market, which occurs every March to May, also has the driving role of the school district housing. Due to the time requirement of information collection, the two or three month of each year is the peak of the housing transaction in the school district. The high price and quick transaction will easily ignite the enthusiasm of the market.

The rise of school district housing prices is also inextricably linked to the rapid development of Beijing's real estate market.

Sales of commercial housing in Beijing climbed from 61 billion yuan in 2001 to about 300000000000 yuan in 2019. Even if Beijing has the most stringent market regulation policy in the country, if the long time cycle is taken, the housing prices in Beijing have risen several times in the past 20 years.

During this period, the price of school district housing has not only been in the "Pyramid point", but also in many market downlinks, and during the financial crisis in 2008, the school district housing has shown a good resilience.

In 2008, Xicheng District Financial Street area famous school district housing area Feng Yuan Garden, the average transaction price was less than 30 thousand yuan. By 2014, the transaction price of the district has reached 100 thousand yuan / square meter level. Since then, the housing price of Feng Huiyuan has climbed again, and the unit price in 2018 has reached about 170 thousand yuan. By May this year, the unit price of some houses in the district has exceeded 200 thousand yuan per square meter.

"Emotional attributes" of school districts

In March 2013, Huaqing Jiayuan, Haidian District, Beijing, the price of a 37 square meter school district was 3 million 500 thousand yuan. Because of the high price, it was also known as the "center of the universe". 3 months later, a 400 square meter quadrangle located on the East Street of Jingshan Hill in Dongcheng District was called the new cosmological center because of its quoted price of 130 million yuan.

Despite the fact that the two housing prices are coming off quickly due to the high quoted prices, the price level of the school district housing is still evident.

In fact, because of the high price, many buyers choose small school apartments only when they choose school districts. In twenty-first Century, the economic report found that in Dongcheng District, Xicheng District and Haidian District, the number of high quality school districts, 30 square meters to 60 square meters of small family housing is the most popular. In 2016, a 10 square meter cottage was sold in Wenchang Hutong, Xicheng District, with a unit price of 340 thousand yuan.

However, the living conditions of small apartments are often unsatisfactory. In order to make up for this shortcoming, many families choose to buy "small rent big". That is to buy a small apartment school district housing for occupying degrees, and then rent a large house in the same district for life. Today, this way of life still exists in large numbers.

Because the purpose of "degree" is too obvious, the school district housing transaction has also changed. In 2017, a quadrangle courtyard in Xicheng District's big ear Hutong, Beijing, was converted into a 10 square meter "zero bedroom" with a marked price of 1 million 500 thousand yuan. "Hallway school district room" was born.

In addition, the garage and shops in the school district are sold as separate living units.

Chen Zhi pointed out that, strictly speaking, the school district housing is neither self occupied nor wholly investment goods. Because of the anticipation of "expecting children to become prosperous", the school district housing transactions are easily interfered by the emotional factors of parents, thus becoming irrational. In order to cater for this sentiment, the practice of illegal alteration has also been greatly bred, resulting in all kinds of wonderful scenes in the school district housing transactions.

In 2014, Wu Ting (pseudonym) and his husband sold their 110 square meter large house in Chaoyang District, and bought a less than 60 square meter school district house in the Yu Zhong Li District of Desheng District, Xicheng District. Wu Ting was totally disregarded by the puzzled people around her. She thought that the investment in children should not be too concerned about the cost.

There are plenty of people who want to buy the school district "do not care about the cost". A senior real estate brokerage practitioner who has served in Desheng district for a long time recalls the twenty-first Century economic report reporter. In 2013, a set of high-quality school district rooms in Desheng district was seen by more than 10 buyers at the same time. In order to settle the dispute, the proprietor will entertain all the buyers one night and accept the offer at the table, and eventually sell the house at the high price.

"In that meal, the owners made about 500000 more." He said.

Chen Zhi believes that the fierce competition in the society and the examination oriented selection mode make many parents suffer from educational anxiety disorder, which is often accompanied by their children from birth to school, and then to various stages of life towards society. In view of the fact that the quality education resources are not balanced, this in turn will create a reverse pressure on the school district housing, making the school district room a dominant manifestation of related social problems.

In order to control the "hot area of the school district", in 2017, the Beijing Municipal Education Commission increased the intensity of the actual residence audit, and focused on the verification of the aisle room, garage room and empty hanging household.

As a result, aisle school district housing, garage, school district housing and other wonderful housing in a flash in the pan, quickly become history.

School District Housing fever will disappear.

In order to further promote the equalization of basic education resources and curb the excessive hype of school districts, since 2017, the six districts of Beijing city have implemented the dicing of young and small schools, defining "six years and one degree". After the implementation of Chaoyang, Dongcheng, Haidian, Shijingshan, Fengtai and other regions, Xicheng District will also implement this policy in 2020.

The multi school scribing is relative to the single school dicing. It means that a community is no longer corresponding to a single school, but corresponds to several schools in the school district or adjacent school districts.

Although it is still necessary for us to completely push it aside, the suppression effect of multi school scribing on housing fever in schools is still optimistic by many people. Some analysts have called the last naturalization period of Xicheng District single school in July 31, 2020, which is called "the 731 deadline". At this point, the school district housing will go down the peak of value.

After the introduction of the policy in April 30th, the school district housing transactions in Xicheng District have obviously increased. Twenty-first Century economic report in Desheng and Financial Street two areas of research found that the small area Huxing housing transactions were hot, the prices of such houses have also risen slightly.

This has also led to the overall level of housing prices in Beijing. Shell Research Institute pointed out that during the May 1 holiday period, the average price of Beijing chain merchants reached 63530 yuan per square meter, which was significantly higher than that of April. Some practitioners estimate to reporters that during the May 1 holiday, the Beijing commercial housing transaction price is 10% higher than that in April.

Besides the buyers, some sellers are aware of the existence of the "great limit". A brokers in Desheng District of Xicheng District revealed that after studying the above policies in Xicheng District, an owner in Australia chose to send her ID card and room copy to Beijing first, thereby expressing sincerity in selling the house.

Can July 31st really become the "limit" of Beijing's school district in July 31st?

Chen Zhi pointed out that the school district room is a contradictory product of educational anxiety disorder and educational resources imbalance. In addition to the improvement of the system level, it also depends on the ideology and behavior pattern of the buyers. If there is demand, there will be a market. Only when demand is cooled, can the transaction of school district housing become rational. He believes that the enthusiasm of Beijing school districts will disappear, but there will be a slow cooling process.

According to the reporter's investigation, a number of brokers in Beijing Desheng and Financial Street area believe that after the recent overdraft transaction, the housing transaction in the school district may be cooling down in the next two years, but the price may not be significantly reduced. "Xicheng District" As long as we have high quality school districts, the price of school districts in this area will not be greatly affected.

Xiong Bingqi told the twenty-first Century economic news reporter that the effect of the implementation of the "multi school scribe" admission policy from all over the country can play a role in suppressing the housing fever and school choice in the school district. It depends on whether there is any practical action to further promote the balance of compulsory education after the implementation of the policy. Specifically, it is to adjust the allocation of compulsory education resources, increase investment in weak schools, and improve the conditions for running weak schools.

"The greater the intensity of promoting compulsory education, the greater the risk of investment in school districts." Xiong Bingqi pointed out that at that time, the school district room need not be bad mouthing, it will naturally cool down.

In restraining the "School District Housing fever", Beijing has always been a multi pronged approach, which also includes the supervision of sales links. Recently, the law enforcement department of the Beijing Municipal Housing Construction Commission has jointly organized 10 housing construction and housing law enforcement departments to conduct real estate market inspections. 21 real estate brokers have been investigated and dealt with. In the various cases of violation, it includes hype "School District Housing".

Even from an economic point of view, School District Housing seems to be increasingly deviating from its original value. Zhong Wei, director of the financial research center of Beijing Normal University, believes that the school district housing in the city is one of the two types of properties that are overvalued at present, and the other is the low price housing in the suburbs.

Zhong Wei believes that in the same area in Beijing, the price of school districts may be 50% higher than that of non school districts. "From an economic perspective, it is better to buy children in the school district instead of sending them to high-quality private international schools. From the perspective of the change of parents' attitudes, the mindset of the post-90s parents has changed, and the expectations for their children have tended to be rational.