• IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here.

    The OTHER forum is HERE so please stop asking.

Property sales dive 70% in Beijing and Shanghai

Watchman

Alfrescian
Loyal
Property sales dive 70% in Beijing and Shanghai
Published June 2, 2010
<--- http://www.businesstimes.com.sg/sub/news/story/0,4574,388566,00.html?

Developers delay launches on govt tightening measures

(BEIJING) Property sales in Beijing, Shanghai and Shenzhen fell as much as 70 per cent in May as developers delay sales following government tightening measures.
Pulling the brakes: China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for second-home purchases

In China's capital Beijing property signings slumped nearly 70 per cent to 3,357 in May from April, the Shanghai Securities News reported, citing data from bjfdc.gov.cn. In Shanghai, the nation's financial centre, transactions may have dropped about 70 per cent to 2,550 signings, the paper reported, and in the industrial city of Shenzhen, sales fell 62 per cent.

China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for second-home purchases. The government is trying to peel back a stimulus plan and US$1.4 trillion lending binge that revived economic growth while raising the risk of asset bubbles.

'The government should have put in tougher enforcement earlier to prevent the high prices,' said Lu Qilin, a Shanghai- based researcher at UWin. 'If the government doesn't stop this soon, the bubble will burst.'

An index tracking 34 real estate firms traded in Shanghai fell 2.2 per cent as of 1:13 pm yesterday, extending this year's loss to 30 per cent. China Vanke Co, the nation's biggest listed developer, dropped 1.3 per cent to 7.12 yuan. Poly Real Estate Group Co declined 3.9 per cent to 10.62 yuan.

Copper, aluminium and zinc also declined on concern slumping property transactions and slowing manufacturing growth in China, the world's biggest metals consumer, may hurt demand for commodities. Lead, nickel and tin fell.

Real estate prices rose a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on May 11. Transactions for new homes in Shanghai fell 56 per cent in the month to May 16 from a month ago, to 520,000 square metres (5.6 million square feet), Mr Lu said.

Most developers are postponing project launch dates and are waiting to see market developments before finally pricing new projects, said Oscar Choi and Marco Sze, Hong Kong-based analysts at Citigroup Inc in a report distributed yesterday.

China's property market problems are worse than in the US or UK before the financial crisis, the Financial Times said yesterday, citing an interview with Li Daokui, a member of the Chinese central bank's monetary policy committee. The country's housing market problems combine a possible bubble with the risk of social discontent, he said.

China's State Council approved the National Development and Reform Commission's gradual property tax reform, according to a statement on the Chinese government website on Monday.

Shanghai's plan to begin a property tax on residential real estate has been submitted to the Chinese central government for review, the China Securities Journal reported on Monday. The city may impose the tax on people without residence permits and those who do not file income tax declarations for three years or more, the report said, citing unidentified people.

Shanghai developers have delayed sales of new residences because the municipal government hasn't announced its property policy, the Oriental Morning Post reported on Monday, citing unidentified developers. Only 46 of a scheduled 96 developments were put on sale for the month as of May 28, the newspaper reported, citing Soufun.com, a real estate data research website.

'We expect more measures to be introduced on developers, especially those to monitor construction schedule and restrict cash flow, thus pushing developers to cut the price earlier,' the Citigroup analysts wrote.

Shi Weijian, an analyst at Jianghai Securities, said Shanghai's government may announce a property tax as early as this month, which will likely be implemented at the end of the year. Shanghai home prices may fall between 25 per cent and 30 per cent from the introduction, he said.

Gao Jian, a Shanghai-based analyst at Northeast Securities, forecast a drop of prices of about 20 per cent should a property tax come into effect.

'We've seen downward pressure of housing transactions and prices, and the correction is likely to continue in the next one to two years,' he said. -- Bloomberg
 

longbow

Alfrescian
Loyal
What Beijing is looking for. They want to slow down the price increases. Down 70% from the crazy high numbers is pretty good.

And the various taxes on property in a way is good for the Gov as it broadens the tax base.
 
Top