China Housing Market On Verge of Chaos: Land Prices Soar 40pc in August

Land sales tapered in August, but prices soared to a record high nationally. According to data taken from 302 urban areas, land prices shot up 46 percent month-on-month in August, to 1591 yuan per square meter. First-tier city prices doubled.

Data shows 5004 plots of land auctioned in August, 133.72 million square meters of land, a decline of 16 percent mtm and 17 percent yoy. Residential land transactions were 1395, an area of ​​43.02 million square meters, up 1 percent mtm, down 5 percent yoy; commercial office space transactions were 1295, an area of ​​18.37 million square meters, a decline of 11 percent mtm and 23 percent yoy.

The four first-tier cities saw 12 residential land sales, an area of 480,000 square meters, an increase of 22 percent mtm and 41 percent yoy. Due to the unceasing high land prices in Shanghai, it pulled the overall first-tier cities land price up to 34,610 yuan per square meter, an increase an increase of 14 percent mtm and 144 percent yoy.

Land prices are pulling home prices higher in China and in many first- and second-tier cities the price of land exceeds to price of homes (flour costs more than bread). Local governments have recently launched efforts to slow the rise in prices, but the spike in land prices suggests they're not having much of an impact yet.

If the governments cannot stop the rise in prices, the central bank will have to step in and crush asset inflation, or risk hyperinflation and currency collapse.

iFeng: 8月份全国地价涨超四成 业内:楼市几近失控(数据)

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