A report about the price variation of thereal estate in 70 cities in China on March was released yesterday. According tothe report, compared with February this year, the price has been up in 62cities with 5.4%, while it has been down in 8 cities with 0.7%. Seemingly,going up becomes a trend.
As we know, the price of the real estate has totally been controlled bythe government. When it needs to be up it goes up; when it needs to be down itgoes down. But most of the time, it is like a horse without rein, going upsharply sometimes, for instance, in Shenzhen and some big cities. It isreported that around 40% of the price is added to the price in 2015 in Longhuaarea of Shenzhen. It is incredible. How could it be? The government should beblamed for its weakness in controlling the price.
As the price goes up like this, the price in Shenzhen will soon catch upwith that in HK. I don’t think it is a healthy development. I am wondering howit works in successful countries. Do you have any good suggestions?