Over the past 18 months we have reported on numerous attempts by the Chinese Central Government to try to cool their overheating property market, using measures such as restricting citizens from purchasing multiple homes, increasing interest rates and increasing bank reserve ratios. In the past two months, these measures have started bearing fruit with the China Real Estate Index showing house prices have fallen for two consecutive months and has caused some speculation that China could start loosen these measures.
But to the contrary, Premier Wen Jiabao said China is targeting a “reasonable correction” in the property market. He told a state council conference, the government should continue with it’s tightening measures for the rest of the year.
» China Residential Prices Fell in October – The Wall Street Journal, 1st November 2011.
» China’s Property Stocks Decline as Wen Pledges to ‘Firmly’ Maintain Curbs – Bloomberg, 31st October 2011.
The proletariat are getting ready for affordable housing after the pop.
Let’s say an apartment at about 30,000 USD should be about right!
😉
Looks the Command and Control mechanism is just about ready to appropriate the apartments on behalf od the people!
🙂
Interesting days.
“But to the contrary, Premier Wen Jiabao said China is targeting a
Can anyone help me with some clarification?
RP Data claims that in Melbourne there has been a 5.2%(s.a) decrease in house prices for the year and 4.0% decrease in raw terms. However if you look at the figures at the end of December 2010 the median price was $505k. The latest results show a median price of $460k. In my calculations 1-(460/505) the property is worth 8.9% less than it was at the start of the year.
Also can anyone explain the difference between seasonally adjusted and raw?
Cheers
KD
@LBS,
Cut off My Finger Instead
http://worldhousingbubble.blogspot.com/2011/11/cut-off-my-finger-instead.html
(From World Housing Bubble)
@KD,
Once Numerology was as attempt to predict the future, it may now be used to describe the present. Which ever it is, its’ purpose is to present ‘better news’ for those who want to hear it.
Forbes is questioning if the property price collapse in China is a crash.
http://www.forbes.com/sites/gordonchang/2011/11/06/property-prices-collapse-in-china-is-this-a-crash/
What will be the implications for Australia? I assume commodity prices will start to soften.
@BotRot
I read that article probably going to be alot more of that…..
“Also can anyone explain the difference between seasonally adjusted and raw?”.
‘seasonally adjusted’ has salt and pepper added. ‘raw’ doesn’t.
Do not believe for one second what RP Rismark or REIV claim to be house prices. There has been a 10-15% drop since mid 2010. Check out http://www.refindhouseprices.com/ and you will see quite a few people are AGAIN dropping prices by 10-15%.
There are now 51 000 properties on the market in Melbourne and stock levels are going up in a very steep rate. See http://www.sqmresearch.com.au/graph_stock_on_market.php?region=vic%3A%3AMelbourne&type=c&t=1
This is MORE THAN DOUBLE the stock levels for sale during the 2008 Global Financial Crisis.
And the story continues.
http://www.heraldsun.com.au/news/breaking-news/china-property-dip-may-have-global-effect/story-e6frf7ko-1226193881933
Naturally, any Government effort to tinker will ultimately fail. From some Chinese friends, it’s already very ugly and just the tip of the iceberg.
“Over the past 18 months we have reported on numerous attempts by the Chinese Central Government to try to cool their overheating property market, using measures such as restricting citizens from purchasing multiple homes,”
And the Chinese are purchasing properties in te US and here in droves.