Media Blames Govt Real Estate Controls For New Speculative Bubble

As discussed in Central Planning 101: Housing "Shortages", Price Distortions Appear as Cities Limit Prices, China's latest real estate controls are causing extreme distortions in the housing market, such as excessive demand and a wide gap between new and existing home prices. It's also leading to a new speculative fervor as housing lotteries cause anxiety on the part of home buyers and the population of speculators expands (just as people entered license plate lotteries with no intention of buying a car). Credit restrictions are having some affect and will have the biggest impact if continues, but should those measures be curtailed the seeds of the next housing rally are already forming.

iFeng: 媒体评"摇号炒房"：这不是抢房 分明是"抢钱"

Therefore, multiple cities took measures to purchase houses to respond to inventory emergency.

Ever since, Shenzhen has been tens of millions of people to buy a house, but also can only find a corner and other shakes, allegedly 5 million sincerity gold has become the lowest number of shakes the threshold of the project; Hangzhou, there are even ten thousand people competing for 100 house shakes Some people fainted and some people fought. Wuhan was also madly robbed of new houses because they were 10% to 40% lower than second-hand houses .

This is not a room to grab, it is clearly "grabbing money"! If you have the privilege of shaking your house, you can easily earn 1 million to 2 million at the right time. The ultra-low winning rate and high premium of “Yaohao purchase (fried house)” is very similar to the new stock market . Some netizens compare this phenomenon with “the property market hits new”. In many places before the introduction of the house-shaking policy, the market has also appeared in the developer's dish of reluctant sellers, speculation in the number of rooms, relationship households, number charges, tea fees and other chaos.

The Yaohao policy is conducive to alleviating the pressure of housing purchases by the just-needed groups. This is the original intention of these cities to launch the new house shake policy. But what's the result? However, it sends the market a signal of “supply short of supply”, allowing the real estate speculators to germinate the “buy it is to earn” mentality. This can not be said to be a satire, but also seriously deviated from the central government's control of the property market and promoted the “domestic housing is not fried "intention of.