Real Estate Now A High Risk Industry

High risk because the crisis is inevitable: real estate buying restrictions will make life miserable for most developers diving into the high-priced land market.

Has it become a "high risk" market?

Where will prices go from here?

Gu Yunchang predicted that by 2017, real estate sales or slowing down, or even negative growth. Sales fell mainly because of the early demand overdraft, but the property market downturn period is precisely the stage to get the purchasing power of their savings back, then prices rise again.

In fact, the soaring house prices in the first half of the industry is, in essence, financial.

Since 2016, credit continued expanding. In the first quarter of this year, the new RMB loans 461 million yuan; which new individual housing loans to 1 trillion, hit a record high since 2010, the central bank began publishing loans from financial institutions to invest in the report.

Beijing new record high to help accounting firm responsible for Huang believes that in addition to the expansion of credit, tightening the real economy, investment, stock market tightening, as well as first-line property market credit crunch, it is the main reason for the sudden increase in second and third tier property market.

Duan Shuhuai believes that chaos is only appearance, the root causes are complex, housing prices need to be analyzed from the land market (land supply side), real estate (real estate providers) and buyers (demand) three aspects to analyze.

"Analysis of the land price trends can 'raise the overall level of development of urban planning of Beijing City' from June 13 Beijing municipal government documents discerned: promoting urban planning and construction to pay more attention to the reduction and quality and change, within the Fifth Ring Road prohibited new construction sites, and strictly control the scale of construction, it is easy to conclude that 2020 Beijing land supply is only possible tighter impossible volume; therefore, the Beijing housing prices would continue to rise "section of quieting said.

Duan Shuhuai also believes that the real estate industry now belongs to "high risk" industries.

"Unless Beijing continues to attract high-income groups to enter the city, cannot rely solely on qualified buyers who can not afford the current prices, but Beijing strict restriction policy makes this possibility of reach..."
iFeng: 房地产已成高危行业:都在赌会不会接到最后一棒

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