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let's discuss housing price in China [Copy link] 中文

Rank: 1

Post time 2006-9-17 16:28:37 |Display all floors
Do you agree that housing price in china will eventually fall in the future? Please offer your ideas and explain.

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Rank: 9Rank: 9Rank: 9

Post time 2006-9-17 16:35:19 |Display all floors

It is hard for the pirce to drop

because the price of the land & building materials won't decline;

our wages keep rising, so does inflation.

In a rapidly-developing economy like china's, it is really hard to predict a decline of the housing price.

We only hope for a slower rise of the pirce.

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Rank: 9Rank: 9Rank: 9

Post time 2006-9-17 16:57:44 |Display all floors

And, when housing price really tilts downwards

and, when housing prices really walk downwards, like what happened in after-1997 Hong Kong, Japan, and other southeasten asian countries,  that possibly mean our economy will be in Big Trouble.   And, our banks will have difficulty to recoup loans (issued to the property developers). And ordinary citizens like us will have difficulty to earn money to repay the mortgages.   So, I won't expect a drastic drop of the housing price, even in the small city called Hefei.

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Rank: 8Rank: 8

Post time 2006-9-17 16:58:33 |Display all floors

Rising Prices Mean Growing Wealth Also

Unless it is a bubble that bursts, growing housing prices is a great source of wealth, and can drive the economy in a healthy manner.

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Rank: 1

Post time 2006-9-17 20:39:38 |Display all floors
But I think housing prices in China are higher than they should be. A drop by 500yuan/square meter will not cause property developers to go bankrupt.  Many of us, especially those graduating from school not long without much saving and family support, wil definitely suffer a lot both finacially and physicalogically.

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Post time 2006-9-17 21:08:45 |Display all floors
God damn high price and low payment

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Rank: 9Rank: 9Rank: 9

Post time 2006-9-18 08:26:40 |Display all floors

And there will slots of houses for renting

Nation to adopt new housing rules
By Jiang Zhuqing (China Daily)

China is expected to adopt new housing policies by the end of the month to favour middle- and low-income urban residents, officials and insiders said over the weekend.
One important adjustment is to divide current affordable apartments into two types: those for sale and those for rent. This will create the backbone of the nation's housing guarantee system in the future, said an official with the Ministry of Construction, who denied to be identified.

Different from past policies, cities will be encouraged to construct and lease out "low-cost houses" for minimum earners, officials said. Moreover, local governments will provide certain allowances for these tenants on rental fees.

The remarks were the latest steps in regulating the real estate market.

On May 29, nine cabinet departments jointly issued an eight-article announcement to curb the property price hikes in many cities, reports said.

"Cities at all levels must work out concrete plans on housing construction before the end of September," it said.

"Because China is a populous nation, it is unrealistic to help each person purchase an apartment of his/her own," said Fang Mingli, a real estate entrepreneur in Beijing.

By building low-cost houses, the nation will handle the problem of the large-number of urban people who cannot afford to buy a new house, he noted.

One controversial issue for real estate developers and insiders is that small apartments no bigger than 90 square metres must now account for 70 per cent of new homes being built.

"Low-priced apartments are welcomed by the mass of people who participate in the distribution of social resources by purchasing new houses," said Meng Xiaosu, who is chairman of China Real Estate Development (Group). But "the small size is just the eye-catching part of the problem."

Nowadays, the proportion of investment into economically affordable housing only accounts for 5 per cent of the total, which is far short of the increasing demand for new houses from middle- and low-income families, Meng said.

"The ideal proportion of economically affordable apartments in China's real estate market should surpass 30 per cent," he suggested.

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