Shock: Housing Speculators Are Back

iFeng: 部分城市存在炒房现象：多地严控坚持"露头就打"

As the resumption of production and production continues to advance, the real estate market in many places has begun to pick up, but at the same time, the real estate speculation phenomenon in some cities has "exposed to some extent", and many places have continuously fought against the chaos in the property market.

Recently, a 62-city existing home index increase ranking (157 issues) released by a real estate website shows that Dongguan's existing home price increase exceeded Shenzhen for the first time in May, ranking first in the country, and house prices are about to enter the "30,000 yuan era." Afterwards, various real estate agencies and online media relayed it, following the hype.

In response, the Housing and Urban-rural Construction Bureau of Dongguan quickly pointed out that the data was not true. At the same time, the Director of the Housing and Urban-rural Construction Bureau of Dongguan City, He Shaotian, said that he would resolutely fight against the current chaos in the real estate market, severely crack down on squeezing and selling houses, creating a tense atmosphere in housing, and driving up speculation on housing prices to ensure the stability and healthy development of the Dongguan real estate market.

Recently, Nanjing's housing prices have also increased relatively month-on-month. According to the sales price index of newly built commercial housing in 70 cities released by the National Bureau of Statistics on May 18, Nanjing's March house price growth was the 27th in the country, and soared to the first place in April. "Overall, the real estate market in the Yangtze River Delta has taken the lead in the recent upswing, and the property market transactions have generally been good, which has also caused a rebound in housing prices. More importantly, such cities have also recently seen housing grabs and other phenomena." Director Yan Yuejin analyzed and said.

The article concludes:

Regarding the future property market trend, Shen Xin, a researcher at E-House Research Institute, said that after the outbreak of the new coronary pneumonia, some cities have reduced the pre-sale conditions and accelerated the approval of pre-sale certificates. It is expected that the supply will increase in the coming months. In May, transactions in 40 cities have increased year-on-year, and some cities have boomed supply and sales. In June, in order to sprint half-year results, housing companies will accelerate the pace of launching and increase marketing efforts, and there is a high probability that the property market will continue to pick up. However, in the current economic environment and policy environment, most urban property market transactions do not have the conditions for substantial growth.

Housing speculation (as with stock speculation in the U.S.) only needs one economic condition in its favor: credit growth. Current conditions support sustained growth in nominal home prices until they don't.