Housing Lottery: 20,000 People Show Up to Buy 866 Apartments in Hefei

The Epoch Times likens Hefei's houses to lottery tickets: 合肥买房如买彩票 二线城市楼市持续疯狂

Recently, Anhui Hefei City, a real estate opened, as were so many people buy a house, forced businesses to draw way up to qualified buyers, and buyers choose Housing unit 1 minute only.

According to official media reported that China, Hefei Lake District Cloud Valley project May 29 opening, the introduction of 866 suites source, the results attracted nearly 20,000 buyers. Due to the large number of buyers, so the developers rely on "Seven-color" lottery numbers before identification chips, buy a house just like buy "lottery", opened a national precedent.

...Qualified buyers and also through layers of screening, to bring customers there are at least 300,000 yuan savings card, plus after verification by credit, with the last digit on the verification agreement, in line with "Seven-color" lottery numbers only identification chips may be eligible to buy a house.

It is now a gambling atmosphere:

Reported that, Zhang Hongwei, director of research, said buying a house is just like buying a lottery ticket, the prize is high, the scene is not necessarily able to buy, it actually reflects the entire market does appear the buy the rise or don't buy the drops.

In other words, they're treating houses like stocks. Everyone is rushing in to buy because prices are rising, and when prices fall, they'll all run away.

According to mainland official April 70 city price index, Hefei, new housing prices rose 5.8%, existing home prices rose 6.8%, higher than Beijing, Shanghai, Shenzhen, Guangzhou, four cities 2 percentage points, Hefei New housing and second-hand house prices in April rose MoM mainland ranked first.

It really is a "greater fool" market now. There's already discussion of these land purchases being reversed in future due to the developers being unable to make a profit:

Dean of Zhejiang newspaper media Real Estate Academy Ding Jiangang said:. "The temperature quickly to the property market, land conduction, the land market continues to heat if RATES tier cities and some second-tier cities prices have a certain rationality, the current land price increase already gradually irrational, market risks looming. "

However, mainland financial experts believe Yixianrong, real estate developers on the future sale of the house in which price is not the end, they just expect prices will rise, and now land grab. If in the future the problem of the real estate market in these cities, they are also likely to discuss or bargain with the local government, and even the local government to reclaim these lands have been auctioned. In earlier years, many cities one by one to the king, unless the real house prices rose to profitable real estate developer, the king would not otherwise be developed.