Mei Ri Jing Ji Xin Wen·2025-11-13 10:03Core Viewpoint - The emergence of a "bank direct supply housing" market is noted, where banks are selling properties at significantly lower prices than the market rate, yet many properties are failing to attract bids, indicating a potential mismatch between supply and demand [2][4][20]. Group 1: Market Dynamics - On November 10, the Lanzhou Rural Commercial Bank auctioned over a hundred residential units at prices as low as half the market rate, but all units received zero bids, leading to a failed auction [2][4]. - Major banks, including Agricultural Bank and various city commercial banks, are actively listing thousands of properties for direct sale, with Agricultural Bank listing 3,436 properties and Guangdong Rural Credit System exceeding 12,000 [3][10]. - The properties being sold are primarily non-performing assets, often resulting from loans that borrowers could not repay, and banks are under pressure to liquidate these assets within two years [4][16]. Group 2: Pricing and Demand - The starting prices for bank-supplied properties can be as low as 2,000 yuan per square meter, significantly below the market average of around 5,000 yuan per square meter, yet this has not translated into sales [4][20]. - Despite the attractive pricing, properties like those from the "育才壹品" project have not seen any successful bids, highlighting a potential lack of buyer interest or confidence in these offerings [20]. - In contrast, properties previously used as bank offices are in high demand, with some selling for prices significantly above their starting bids, indicating a differentiated market response based on property type [2][16]. Group 3: Asset Liquidation Process - The increase in bank direct supply housing is closely tied to the disposal of non-performing loans, with banks utilizing both judicial and non-judicial methods to recover debts [16][17]. - The judicial auction process typically starts at 70% of the appraised value, with subsequent rounds reducing the price further, leading to properties being sold at approximately 56% of their original appraised value after multiple rounds [17]. - The case of Lanzhou Rural Commercial Bank illustrates this process, where properties were acquired through court enforcement after the original borrower defaulted on a significant loan [17].