Author: pegasus01

how about the skyrocketted housing price in cities across China? [Copy link] 中文

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Post time 2008-6-9 15:46:47 |Display all floors
Originally posted by exportedkiwi at 2008-6-5 20:53
I think that all Chinese people are more than just a little anxious over the cost of everything in China these days, housing being a primary concern but food and utilities being of more interest be ...


freaky housing price is always at top priority under whatever circs. ppl complain, blame, cuss, and even protest it for long across china.
but it has changed almost nothing just because of the bolster by interest vested.

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Post time 2008-6-11 15:07:21 |Display all floors
everybody knows the freaky housing price is bolstered by land trade price, but cctv economic channel always shuns this substantial matter in explaining the high house price.

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Post time 2008-6-11 22:33:45 |Display all floors
it is widely reported that land-sales money has become major financial revenue for many local government, that is to say. land-financial takes a major role in pushing housing price hike sustainably for years

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Post time 2008-6-11 22:59:00 |Display all floors
Originally posted by pegasus01 at 2008-6-5 20:28
pepole are yelling outcry over this issue around, but there is no echo herein, don't you feel eerie?


The housing price is simply too high in China. But the supplies and demands are still both there. Untill the balance is tilted up so high, the price won't drop.

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Post time 2008-6-12 00:57:21 |Display all floors
Originally posted by chinesequeen at 2008-6-11 22:59


The housing price is simply too high in China. But the supplies and demands are still both there. Untill the balance is tilted up so high, the price won't drop.


disagree a bit somehow, as it is well-known, the said demands are considerably fake or manipulated, so called self-sell and self-buy trick. it is motivated to make superficial transaction, and also to cheat bank loan. due to asymmetry of information in real estate market, those fixed property are mostly bought  by speculators for house stir. huge portion of the sold house are never dwelled but left empity for futher trading. it has caused unimaginable waste of social resource and brought an aftermath that most salary class are unfordable to buy a house normally.

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Post time 2008-6-12 01:23:59 |Display all floors
Originally posted by dickman at 2008-6-12 00:57

disagree a bit somehow, as it is well-known, the said demands are considerably fake or manipulated, so called self-sell and self-buy trick. it is motivated to make superficial transaction, and also to cheat bank loan. due to asymmetry of information in real estate market, those fixed property are mostly bought  by speculators for house stir. huge portion of the sold house are never dwelled but left empity for futher trading. it has caused unimaginable waste of social resource and brought an aftermath that most salary class are unfordable to buy a house normally.  


This manipulated market is inevitable. It could exist at some cities for certain period of time. The ultimate purpose is to sell the houses and pay off the bank loans. If there won't be enough potential buyers within certain time frame, something got to happen. But if there are plenty of buyers, this skewed real estate market will continue to exist. It is a tough situation for people with fixed income.

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Post time 2008-6-12 10:27:37 |Display all floors
Originally posted by dickman at 2008-6-12 00:57


disagree a bit somehow, as it is well-known, the said demands are considerably fake or manipulated, so called self-sell and self-buy trick. it is motivated to make superficial transaction, and  ...


I agree.

People think that the price of houses is going up so they buy the house just to make a profit. However, they will only make a profit if someone else thinks that the house will continue to increase in value. So rich people selling to the rich.

Perhaps the Government should be taxing the sale of undeveloped property at punative levels to reduce the speculation in the market. That should reduce the false demand for new property and get house prices down to more realistic levels.

And perhaps the Government should cap the profits of house builders who are fuelling the price perception.

But it isn't likely to happen.
(mostly harmless)

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