The price increase of solid wood flooring is inevitable

Since May, the floor market has been relatively flat compared with previous years due to the influence of the state's control policies on real estate. Whether the situation can be reversed becomes the key in the second half of the year.

According to data released by the National Bureau of Statistics on August 9, from January to July, national real estate development investment was RMB 31.87.3 trillion, a year-on-year increase of 33.6%. This is an increase from 32.9% from January to June. Among them, residential investment was 2,287.9 ​​billion yuan, an increase of 36.4%. The sales area of ​​commercial housing nationwide was 52.07 million square meters, an increase of 13.6%. Among them, residential sales area increased by 12.9%.

Property market "price for volume down." Flooring market benefit

The intensity of the national regulation and control policy has had a certain impact on the real estate market. The enthusiasm of developers has declined, and there has been a "fall in volume and price", but it still has not reached the situation where the public has expected a sharp price drop.

The control policy is still tight, and there is no sign of relaxation, leading to a continued increase in the wait-and-see mood for buying a house. Just after the low season in July, the traditional peak season of the property market, "Golden Nine Silver Ten", is about to usher. Increasing the number of launches in the month and intensifying the promotion efforts will also see a significant increase in the turnover of commercial housing. Developers have to withdraw their funds, and the market is expected to form an overall pattern of "price reduction and volume replacement" in the next few months.

Benefiting from the recovery of the real estate market, the flooring market is also expected to go out of the lackluster of the first three months, showing a rising trend.

Demand for floor after first installation is increasing

With half a year left, local governments have begun to work hard to achieve this year's target for affordable housing construction. In places such as Beijing and Shanghai, the operating rate in the first half of the year exceeded 50%, and the construction of affordable housing can meet the standard throughout the year. At the same time, under the influence of regulation, major real estate developers began to change their business philosophy, focused on creating quality real estate, and obtained high gross profit margins by increasing the added value of the project. The concept of hardcover housing began to spread.

With the increase in the construction of affordable housing and the popularization of the concept of hardcover housing, consumers originally bought the house and then renovated it. Now the developer renovates the house before selling it to consumers. pattern.

Moreover, the high-end demand in the first-tier market has not changed, coupled with the firmness of the second- and third-tier markets, the rigid demand for flooring is actually increasing.

As the upstream of the flooring industry, the real estate market is experiencing another pain of regulation. The control policies have achieved initial results, and the market pattern has changed. For the flooring industry, it is all good news. In addition to the rising costs of labor and raw materials, the price increase of solid wood flooring is inevitable.


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