2 Reasons Third and Fourth-Tier Home Prices Rise

iFeng: 三四线楼市​房价为什么会涨 背后的两大因素
One is the local government to reduce land supply, resulting in scarcity of property resources; the other is, loose monetary policy cycle, the market too much money, resulting in strong investment demand.

In short supply situation, the house, especially some of the key cities of the house, has become the market competition for each other's goals, prices will be fried higher.

...In the long-term perspective, the three-four-tier cities still have a problem attracting population, local residents purchasing power, industry and other public resources, home buyers are more sensitive to price changes, I think the third or fourth-tiers of the city's property market can boom one to two years, will never appear super prosperous, want in the three or four lines, especially not close to the central city, no significant population increase in the third or fourth-tier Buy a house to invest must be careful to be careful, the property market investment is not short-term flipping, there's also a lot of risk with many buying restrictions.
So what's the strategy? Wait for tighter policy to make prices fall, and then quickly buy before the government loosens policy again:
Can say so this time the property market's strict control, is just the best chance. However, no one knows when the price of the end, so you need to establish a bottom line (such as down 10% or 15%), you can spend 2-5 months to observe the market and the election, once Found to reach the bottom line of the emergence of the time, quickly shot. Rather than follow the policy to go, until the policy is loose, the price will go up again.

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