Author: dongzhx

Housing prices to fall in Beijing? [Copy link] 中文

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Post time 2007-4-3 12:58:43 |Display all floors
carrotzxm wrote:

''The housing price will be fallen in BeiJIng. it's terrible info''

Unless the Government decides to intervene in the house market, buying a house is usually a good investment. People will usually prefer to buy a house than to rent it. However, if people do not have the money to buy houses then the value of houses will drop. If people earn more money or if the bank interest rates drop or if the number of houses being built is reduced then the price of property will start to rise again.

Over a period of many years, house prices can be seen to match people's abilty to buy them so can be good long term investments. However, sometimes house prices can increase or decrease sharply and that is what we are seeing now in Beijing. This is because the Government sent a signal to the house market when they made it more difficult for foreigners to buy houses. This reduced demand of expensive property That had the result of property developers reducing their prices because most Chinese cannot afford luxury property. This in turn has had the effect that people lost some of their short term confidence in the house market as a good investment - so property prices have fallen further as people stop buying.

But do not panic. Soon people will start to believe that houses are too cheap and that there is a profit to be made again - just as has happened in the stock markets.

But if people have decided that houses are too expensive to buy then they will need to rent a house. So maybe you should consider renting your houses.

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Post time 2007-4-4 11:29:08 |Display all floors

Reply #15 fatdragon's post

That's good advice for those NEW CAPITALIST Chinese investors!

ha ha ha

Always pay attention to domestic, regional and international politics and policies.
I may add, pay attention to the weathers also!

ha ha ha


Green Dragon
Lord of the code
God of Prosperity

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Post time 2007-4-4 11:56:09 |Display all floors
greendragon wrote:

Always pay attention to domestic, regional and international politics and policies.
I may add, pay attention to the weathers also!



And don't forget that a quick profit is someone elses quick loss.

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Post time 2007-4-4 14:02:42 |Display all floors
it's a good trend.There is too much foam in this industrial.

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Post time 2007-4-5 10:47:59 |Display all floors

Reply #18 jimmiegq's post

eh?


Green Dragon
Commenting on "Catch no balls" comment by jimmiegg!

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Post time 2007-4-5 10:50:19 |Display all floors

Reply #17 fatdragon's post

and YET Mr. Fatdragon from the UK!

Market prices cannot be more than Indigeneous demand or affordability!
Otherwise, there would be no Beijingers anymore!
Foreigners would be stupid to invest in a "negative return property" if without intrinsic demand!
It's the middle class that complains about the high price high end property!
They could not face reality!

We need satellite cities and good rail or mass transit infrastructure to the city center working district!
It would pacify the powerful middle class.
In the Amerikan Regime cities, suburban middle class houses are very popular!
It's time to popularize it in China and Beijing!


Green DRagon
Game Master

[ Last edited by greendragon at 2007-4-5 10:52 AM ]

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Post time 2007-5-7 23:03:05 |Display all floors

FOOD FOR THOUGHT: In 2005, OECD predicted no housing bubble in the US

In a report published in 2005, the OECD predicted no housing bubble in the United States.

In their report,  they suggested that the “fundamental” price-to-rent ratio in the United States was above its actual level until 2000, the benchmark year.

Since then, the series have moved together and the gap between them has been negligible. On this measure, there does not appear to be much of a case for overvaluation, at least at the national level.

Their research also concluded that there was overvaluation in australia, the United Kingdom, Ireland, Netherlands, Norway and Spain. The actual price-to-rent ratios in these countries were noticeably above their “fundamental” levels in 2004, suggesting overvaluation.

However, the OECD said that the extent to which these prices look to be fairly valued depends in good part on longer-term interest rates, which exert a dominant influence on mortgage interest rates, remaining at or close to their current low levels.

Their report can be found in:

http://www.oecd.org/dataoecd/41/56/35756053.pdf

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