Ni Pengfei: Buying Restrictions to Last Thru 2017

State Council scholar Ni Pengfei says buying restrictions won't end in 2017.

iFeng: 倪鹏飞:楼市调整将持续2017整年 房地产利润要平均化
But we are more worried about is that in the long run market supply is expanding, oversupply is increasing, developer investment confidence is falling, which means relying solely on real estate investments to spur economic growth may be over, is unsustainable .
On the current policies end date:
Reporter: Do you think this round of adjustment cycle will continue to how long?

Ni Pengfei: Following the regular cycle and system cycle, typically a three-year period, an increase of half a year, year and a half of the decline, if other conditions remain unchanged the whole year of 2017 will be a period of adjustment.
Real estate started rebounding in summer 2015 so that fits his timeline of 1.5 years up, followed by 1.5 down.
Why does the money flow into the real estate, the fundamental reason is that the interests are too high. Popular, the industry has a monopoly so the interests are not equal, resulting in high monopoly profits, profit averaging is to break the monopoly to compete. In general, this involves three levels of the problem, namely the land system, financial system, fiscal and taxation system, which support the real estate market and land market monopoly, resulting in large-scale investment speculation.

In fact, to establish a market regulation mechanism to curb investment speculation to create the conditions. For example, taxes, the collection of real estate tax, the formation of certain pressure on speculative investment.

In addition to establishment of a sound mechanism of government regulation, the market is changing, especially in the financial sector, real estate is a financial product, even the relatively robust market mechanism USA also had a housing bubble.

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