China’s real estate market occurs vicious policy awkward Real Estate News and Tips

In this round of real estate regulation policy, the No. 4 bearing the brunt of that “increasing supportability housing and efficient supply of common goods housing” is the first priority, and stressed that “to the appropriate increase affordable housing-building efforts, expanding affordable housing supply range. Commodity prices are too high, rising too quickly, it is necessary to increase the limit item housing, affordable housing Louis Vuitton public rental housing supply. “At the same time, the 4-man favour with differentiated credit policies and differentiated tax policy to” reasonable guide housing consumption, inhibits investment in speculative purchasing needs. The text requires the end of 2012 the “strive, basic resolution 1540 million low-income housing difficult family housing problem”.

However, very funny is the implementation of the new deal: after 6 months, in addition to the turnover of atrophy, national rates remained firm. This regulation results, let the experts forecast the collapse of the glasses, so some of the media and academics anger to ping. So they turned to the optimistic, pessimistic by anger turned negative: “If you do not use price dozen freely, the consequences will be disastrous!” it is clear that this is not a scholar’s academic attitude, more is not a so-called “experts” academic standards! Since Central No. 4 and 10, are clearly pointed out that the regulation’s objective is to “prevent excessive rise in prices,” and “stability” and the market is expected to promote the Chanel Bags healthy development of the real estate market is stable, then these so-called experts, academics and why forcefully to the Central spiritual misinterpretation misleading. Those who advocated for the price of one hand crushed to individuals will impose Central spirit, on the other hand is obstinate, misleading and suit taste.

Of course, this is wishful thinking naive, both from the immediate or long term, the price of crushed incompatible with economic laws, nor realistic. From the future, in the long term, the next 20 years, that is as of 2030, China will have at least 4 million peasants into the city settled by that time, China’s population urbanization rate will reach 65%. This is the national development and reform of official reports, of course is not a joke. The next 20 years of rapid urbanization, who can stop people from huge demand on real estate and who also have the ability to rate real play.

However, now there are some local government getting ready to send rates crushed, however, is it really crushed, or false to play it, we have no way of knowing. However, the Central Government has never advocated to beat the price. Since local governments is the high price of the first beneficiaries, so that they really want to fight house price. 7 October, also in the national day in Shanghai has introduced market regulation rules, of which, the most dazzling of the two provisions: one is the sales order, this interim policy, provides residents of other provinces of Shanghai each household can only buy 1 set of commodity housing; the second is preparing to introduce the so-called real estate retains tax.

October 11, Hangzhou city also study launched on further strengthening the city’s real estate market regulation, to speed up the implementation of the Replica handbags housing construction, and tentative opinion in Hangzhou, and other provinces households only in Hangzhou new purchase of a product on housing. Obviously, the local Government to do so, just to expand to sell the effective supply of commercial houses, but it cannot solve the effective supply of support in housing.

In fact, China’s real estate market occurs vicious policy awkward, because the Government and the market boundaries of ambivalence and confusion. Because the House is a pure market, and supportability housing is a common product, therefore, the issue should be referred to the commercial market, and supportability of housing should be undertaken by the Government.

The two cannot confuse low-income or disadvantaged groups of the housing problem, should be determined by the Government addresses the protective housing; and high-income housing problems should be referred to the housing market. You cannot mix the two, the Government is not possible to resolve by suppressing rates of low income populations of housing, more is not possible to suppress the price to shirk the Louis Vuitton Bags government should provide protective housing of social responsibility. Taking a step back, even if house prices fell by half, and low-income families can afford it? of course can’t afford it, because they even with low-side, side are still waiting for the Government of the support in housing.

Even if there is excessive speculation in commodity markets, the conclusions of the phenomenon is still “broken” as sparse. Because the Chinese investment channels too little, too narrow, or even the stock market is not investing only speculation. Real estate is a market, and is an important investment market, you can say “do not allow investment real estate you can claim the suppression or against property investment. If you do not have investment real estate, money can only be placed on the Bank the devaluation forcefully confronted; real estate since is a capital market, should allow investors to choose only the Government can do is “indirect” macro, for example, to expand the effective supply of support housing interest rates, credit policy deposit system, tax policies such as capital income, real estate retains tax to effective regulation of real estate market, but the Central Government or local governments but should not be administrative provisions sales or purchase is not allowed.

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