Chinese Government Policies Put Damper On Housing Prices
Submitted by Bill Belew on Sunday, 22 October 2006No Comment
Prices for a home in China continued to rise based on a survey of 70 major Chinese cities.
However, the pace of the increase has eased a bit.
From January to August of this year, prices rose 5.6% over the same period of last year but down 2.4%.
But…investment in real estate for the first nine months was $161.3 billion up 24.3% over last year.
Therein seems the culprit. The cotton picking real estate investors are driving the prices up.
Is that any different than it is anywhere in the world?
Macro control policies do seem to be having some effect but…something will need to be done to curb investors.
How about NOT letting the investors buy at all? That would be a novel idea.
What do you think?
A problem in the major cities is speculators buying up housing to hold it for a few months and wait for the price to rise. Since they don’t bother renting it out, this exacerbates the housing shortage, driving prices even further up. Can you spell B-U-B-B-L-E?
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