To some extent, before some small and medium-sized cities define the so-called malicious price reduction, many cities have actually issued corresponding price limit orders. When a local real estate developer reduces the real estate price, many cities will organize real estate developers to reduce the price in various ways, and define this behavior as illegal price reduction. This is mainly because the price reduction of real estate will directly affect the stability of local housing prices, leading to the reduction of mortgage assets brought by local houses, which may lead to systemic financial risks in local banks, so almost all cities are not allowed to significantly reduce housing prices in a short period of time.
This measure is really hard to understand.
The reason for saying this is mainly because the definition of malicious price reduction introduced by many cities itself is unreasonable, and it is difficult for people to agree with this measure. For property buyers, when property buyers can buy cheap houses, many people will find that the relevant cities do not allow everyone to buy cheap houses. Even if real estate developers want to take the initiative to cut prices, many cities will strictly prohibit such price cuts.
The main purpose of this measure is to stabilize housing prices.
You can try to understand this: if a local real estate developer suddenly reduces the price, this way will directly lower the local house price, and it will also lead to a sudden collapse of the house price in a short time. In this case, although the collapse of house prices can make buyers buy cheaper houses, this behavior will also lead to systemic financial risks in local banks. If this happens, it basically means that the local real estate bubble will burst directly. In order to avoid the bursting of the real estate bubble, many cities will introduce such shocking measures.