Shenzhen's Credit Driven Housing Bubble; Shanghai Psychology Shifts

First, the evidence can be funded, the average mortgage into several. Shenzhen Branch data show: to December 2015, the Shenzhen LTV is 65%, much higher than the "Beijing-Shanghai-Guangzhou" three cities, up 3.2 percentage points higher, with 70% of the maximum loan limit to just under 5 percentage points almost has leveraged loans use to the extreme.

Secondly, buyers are willing to borrow, Shenzhen Homelink data show: 2015, Shenzhen 91.2% of home buyers choose a loan, setting the highest value in recent years, an increase of 3.9%.

By the end of 2015, the balance of individual housing loans in Shenzhen more than 700 billion yuan, an increase of nearly 40 percent over 2014, higher than Beijing and Shanghai by 120 billion yuan and 130 billion yuan respectively.
Full year rental income from a 100 sqm flat might be about 35,000 yuan. Profit from the sale after 1 year? 1.7 million.
Had by buyers of second-hand housing in Shenzhen in 2014 to calculate the average price of 35,000 yuan of investment income, the conclusion is: invest in a 100-square-meter house, earn at least a year to about 1.7 million.
In Shanghai:
"Psychology has changed, so everything has changed."

"If I knew earlier that prices would rise so suddenly, I would have borrowed everything to buy houses."

...Second-hand housing market chaos, real estate, owner price jump freely, almost equal to the price of the new home market. New home is hard to find a room, frequently millions of dollars in real estate development is not clutching his land, or to change the nature of the land to increase housing supply. Supply side in the real estate market for sale, no one knows to what extent will rise, they are convinced that the prices will rise all the way. Supply led to a serious imbalance between the demand side like a lamb to be slaughtered, only to let the owner hike.

...In this context, the Shanghai land market soaring. Over the past six months, the land auction market appeared frequently high premium land in the 73 land transactions, the premium rate of more than 50% on 25, more than 100% on 11. Share compared to last year were higher by about 15%. Floor price is higher than the average price of sale of real estate in the surrounding common occurrences, which stimulate the customer's buying mood in a considerable extent.

Tight supply and rising prices of new homes also contributed to the second-hand housing market, second-hand housing skyrocketing further push up new home transaction price, market sentiment has become stimulate circulation under abnormal high.
iFeng: 楼市疯涨调查:地产政策被投资避险逐利需求扭曲

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