Third- And Fourth-Tier Still Rolling Out Policies to Boost Housing

Shenyang has rolled out 22 policies aimed at increase home sales, in an effort to grow sales 10 percent yoy.

For the property market to the inventory, local governments have also introduced "go" of measures. March 28, for the "zero down payment " controversy risk Shenyang in nearly a month after the release of a new version of the New Deal, for individuals to purchase housing urban levels of reward policy; reduce second-hand housing transaction taxes and fees; to encourage farmers into the city to buy a house live support graduates and students in the purchase of land supply in half, etc. 22 new real estate policies.

...Jiangxi Province, a Department of Finance told the "Economic Information Daily" interview, said that from last year, the year before auction and are not linked out. Local tax introduced in some destocking incentives, including lower transaction deed tax and other taxes, although this will affect revenue ten several hundred million, but still want to place these policies so that the real estate market to pick up some.

Sichuan Yibin City of destocking, announced that it will be fully liberalized housing subsidies, to 31 December, in addition to continue to implement the policy of housing subsidies of 200 yuan / square meters outside, Yibin area restrictions will cancel subsidies.

March 29, Sichuan Provincial Housing and Construction Office is issued a circular calling for cities (prefectures) carefully sort, perform the relevant legal procedures, policy continuity, making full use of the strong support of the real estate market housing fund "to reduce inventory."
The article goes on to discuss an article by economist Ma Guangyuan (recently covered here: Ma Guangyuan: Debt Cliff A Greater Threat Than Real Estate Bubble) who says the housing market isn't really a bubble. He argues that first-tier cities like Shanghai and Beijing completed their urbanization before the nation was fully urbanized. The prices will be high there because they will be bought by the wealthy; the demand exists. On the other hand, the real story is the foam in the lower tiers, 13 to 15 billion square meters of housing built, planned or under construction, equivalent to 10 years of sales. With this much inventory, some cities don't need to build any houses for years, and the best way to adjust is for prices to fall. The bubble is therefore not where the prices are highest, but where the inventory is greatest, which is in cities with already low prices.

iFeng: 中国三四线城市才是全球房地产泡沫最大的地方

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