Overseas Homes and Equities Attract Investors, Chinese Home Price May Track GDP At Best

Another article, this time from China Finance Online (CNFOL), argues that price increases will fade in the coming weeks. Developers remain skeptical of a major rebound, with many seeing govt intervention as helpful, but unable to reverse a market that has, in their view, permanently shifted.

From the large market environment, the current property market landscape has changed dramatically. Yu Liang, president of Vanke Group by the end of March in the earnings call, said the property market, the central government introduced policies to boost the market will indeed play an important role, but the policy itself does not change the entire industry, from the "Golden Age" to the "Silver Age" change trend. "Silver Age" of the property, the property market supply and demand structure reversal from the previous shortage becomes localized oversupply, prices lost ground rapidly rising.

And according to the current market circumstances, in addition to a few cities, housing prices in most regions are impossible because of the introduction of the policy stimulus and rising. Eastern Region director of research at Jones Lang LaSalle Zhifeng Zhou pointed out that after the New Deal, the probability of large price tier cities, three, four-tier cities excess supply, high inventories, weak demand situation is difficult to change in the short term, they will not have rising price conditions.

...Based on the above analysis, we believe that prices rebound, just a normal reaction to a weak market, once the policy effect is digested by the market, the market will establish a new equilibrium. We expect that the market will be the extent of trading activity has improved in a few areas such as population import city, because of the substantial increase in demand and prices rose slightly, the rate of increase of about 7%, with the country's economic growth is similar. Some cities, such as supply and demand imbalance, Ningbo, Wenzhou, Dalian, prices rose difficult.

For buyers, do not have to because the individual real estate price and disrupted their purchase plans. At this stage, the market is relatively abundant supply, even if the encounter has a price of real estate, buyers can buy similar properties to replace, rather than panic buying

iFeng: 楼市一大信号证明房价不会大涨 背后原因曝光

A separate article says the developers willing to talk about rising prices have disappeared. At a recent trip to the Beijing Real Estate Expo, a reporter found developers are talking about everything except prices. In recent years, rising prices and the need to pre-order as the main sales point. Now, the sales people are talking about transportation, landscaping, facitilities, etc. Only one out of six agents tried to push investment and rising prices as a reason to buy.

Additionally, although public discussion focuses on rising prices, developers were actually willing to cut prices. In one case, a development in Zhouzhou, a city near Baoding in Hebei (about 1 to 1.5 hours away from Beijing) was selling for ¥7200 per sqm, up from ¥7,000 last year. However, agents said recent homes have sold for ¥7,000 and if you are willing to pre-buy, you can get a new home for ¥6000 per sqm.

The stock market is drawing away speculators:
"For now, the environment does not support price increases." Beijing Organizing Committee Secretary exhibitions Brings the case said, the better the real estate market compared to previous years, and now the country has launched a real estate registration system, to prepare for the real estate tax; On the other hand, a booming stock market, investment funds have more channels to choose from, the real estate investment is no longer a single product.

One area of growth is to convince Beijing city residents with expensive homes, to trade out to a large apartment or villa outside of the city:
"For first-tier city consumers, sell your old house for a big house, the time has come." Brings said, on the one hand, the new policy has been greatly reduced cost wards, on the other hand, in the foreseeable future, the first-tier cities especially housing hot spots will remain stable, not rose nor fell.

iFeng: 北京房展探“水温”:谁还相信房价会大涨?

Home buyers are more willing to buy overseas though: Why Chinese nationals are investing more in overseas properties
Compared with Europe, the cost of living and housing prices in the United States are relatively lower, thus leaving much larger room for appreciation. Because there are a large number of immigrants in the United States, it is easier for foreigners to assimilate into the culture.

Also, the quality of housing construction in America is high, and homeowners have permanent ownership.

In the United Kingdom, London is the primary city suitable for real estate investment, but some investors have complained that the weather in London is not very good and it is more difficult for foreigners to integrate into society.

The greatest attraction of real estate investment in Australia is that the country does not levy an inheritance tax.

The Beijing expo was "bursting" with overseas listings:
As in previous years, the biggest surprise of this year's overseas pavilions are also exhibitions, and a total of 30 countries, more than 140 overseas exhibitors, the conventional participating countries are the United States, Australia, New Zealand, Europe, France, Britain, Germany and Italy, Southern Europe Cyprus, Spain, Greece, etc. Moreover, this will also have a project in Taiwan exhibitors. Project types include luxury apartments, luxury villas, commercial real estate, land investment, the US EB-5 and so on.

China Daily: 北京房展海外楼盘爆棚

No comments:

Post a Comment