Author: patricksan

Is it the right time to buy property in China [Copy link] 中文

Rank: 4

Post time 2006-11-8 10:50:50 |Display all floors
The situation in Shanghai is that the earlier the better.

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Post time 2006-11-8 12:12:02 |Display all floors
it's not the right time if investing,policy oriented not clear at present

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Rank: 6Rank: 6

Post time 2006-11-8 12:42:09 |Display all floors

Those that did not purchase property years back are kicking...

there heads in that is.

The rule of the thumb is to understand how the rich works. The money made is not for distribution to the less fortunate so forget about the whole 'let a few man get rich first' faith and concept. At this stage, the rich are investing the money primarily into real-estate AKA hoarding property so property can continue to rapidly or consistently appreciate. With more and more people moving into the big cities this trend and unbalanced 'supply and demand' is not going to go away anytime soon. China has 1.3 billion people and half of them are still striving to move into the larger cities so hoping prices will go down is wishful thinking even with government preventions and strict measures. This is a runaway investment and the snowflake that rolled into a snowball is in no hurry to slow down. The main reason Shanghai has showned a decrease in its price is because prior to, those multinational companies were paying beyond the standard prices in order to hoard whole buildings at a time (also in the hopes and speculation in the appreciation of the RMB).  

The ratio of supply and demand can not be well-balanced in China since the demand is chronically much higher than the supply. (lest ye not forget the waves of Taiwanese and HK people that are snatching them up for 'investment')

[ Last edited by eyeofstorm at 2006-11-8 12:43 PM ]
~All that which glitters is not gold~

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Post time 2006-11-17 19:37:09 |Display all floors
China will slow the economy down by increasing interest rates , that will slow the housing boom and stabilise the cost of housing in the short term, I know china is caucious and will try not to overheat it's inflation rate, after the olympics things will cool down a bit and you will see a lot of these units start to sell, most apartments in Beijing that are empty will start to be rented by people trying to cash in on the olympic shortfall in accomodation, at the moment it would be cheaper for you to tie up a few apartments for the next couple of years and make some money from the olympic tourist accomodation trade.
There are no Ugly women , only those with low self esteem .

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Rank: 8Rank: 8

Post time 2006-11-27 12:16:58 |Display all floors
It was announced today - or yesterday depending on time zone - that rates for "Land Use" will double as of January 1, 2007.

This is not expected to increase prices for apartments since these charges are levied only on the local governments and not the developers, but the idea is to reduce the land grab made by some local governments and the building of aparments that then stay empty until either the developer feels they are valued enough for the developers desired profit margin or until the speculators that bought up the entire apartment complex feel the same way.

The idea is that with less land being grabbed, there will be not only an average similar payment of land use but with less land available to "grab" the developers and speculators will be pushed into selling some of their holdings.

We'll see if it has any effect over the next year.

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Rank: 8Rank: 8

Post time 2006-11-27 12:29:58 |Display all floors

Reply #12 canchin's post

increasing cost for "unuse" buildings will reduce "hoarding" which unbalance the equation of "demand and supply"...

in Singapore, property tax of "hoarders" is high at 17.5% of annual value while Occupiers owners are low with discount up to 80%? ( i cannot recall well)......this prevents hoarding and discourage waste.

I am proud. This was one suggestion that i gave some time back!

Yet again, The Green Dragon strikes another winner!
Another suggestion accepted!


Green Dragon

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Post time 2007-2-1 12:32:15 |Display all floors
i think ,before  2oo8  olympic games,the price will have a upward trend,as government  is impossible to adjust current situation a lot,espicially in big city,such as beijin、shanghai ,etc。the reason is obviously bussiness and spectecular also understand it,they will stand their position.

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