采访/常春 编辑/黄亿美 后制/孙宁
Chinese Housing Market Cools Down
China’s real estate market has been on a stormy path recently
with price cuts on major real estate.
A number of banks curbed real estate loans to avoid risk.
Subsequently, the stock market has taken a tumble as well.
Experts analyze the real estate market trend in China is not
normal, but a result of a series of policy measures.
Will the real estate market collapse theory take place?
Let’s see our reporter Huang Yimei’s analysis.
With real estate sales in decline in nearly 90 percent
of first tier cities, as well as slashed property prices
in Hong Kong, Hangzhou, and Changzhou, the warning
of a property market decline is getting louder.
However, according to the data from National Bureau
of Statistics on Feb. 24, only Wenzhou real estate prices
declined by 4.3 percent out of 70 cities compared
to the January 2012 data.
Property values have risen in 69 cities.
The housing prices in Beijing, Guangzhou
and Shenzhen rose more than 18 percent.
The housing price in Shanghai has the largest rising
at 20.9 percent.
Recent data from People’s Bank of China also indicates that
this January, Shanghai’s foreign currency property loans have
added another 11.67 billion yuan, hitting a new record high
in the individual monthly property loan growth rate
over the past three years.
CCTV financial commentator: “I went to some counties
and cities in Yangtze River Delta, including Hangzhou, Yiwu,
The property market is really poor,
they are not wanted.
The second-hand property market is a mess too.
Second-hand property in Shanghai accounts for 20 to 30
percent of the market, and no one will purchase pre-owned.
They are still saying that prices are rising."
It is understood that after Chinese New Year,
DeXin-Beihai park real estate in north Hangzhou city
cut prices by 3,200 yuan.
A nearby estate in Tianhong Champs had a 3,400 yuan cut.
Subsequently, eight more properties in Hangzhou
made various price adjustments.
Yang Bin, economist: “In fact, a 50 percent price cut
is still a bubble.
People cannot afford it.
Average housing prices are still the highest
in the world, higher than even New York.
It is a sure figure in Dollar or RMB, it is just high.
As for how much they’ll cut prices, it depends.
I think a 20 percent cut is very likely."
A recent Internet post titled, “Five Pieces of Proof
of the Real Estate Collapse", has gained popularity.
The author believes the Chinese housing market has collapsed
or is on the verge of collapsing.
The five pieces of proof are that the high season for selling
is running low, there is no market for real estate
in third or fourth tier cities, Chinese banks have tightened
housing loans, more houses are for sale, and moguls
have withdrawn their investments in real estate.
The Communist mouthpiece Xinhua commented, “Regardless
if these five pieces of evidence are true, one fact
is that real estate market in 2014 has been
looked down upon by many."
People believe that even though the National Bureau
of Statistics showed an overall growth in real estate,
the 2014 prospects look bad.
The series of advantages the Chinese real estate market
is enjoying now could likely become the cause
of a later collapse.
While the real estate market in China is wobbling,
Renminbi also appears to have quickly depreciated
along with significant capital outflow.
Hong Kong real estate prices were down by 30 percent,
Li Ka-shing’s selling of his assets in China and other cases
have reminded the Chinese of the real estate risk.
For more than 10 years, the real estate bubble in China
has been large with increasing prices.
A burst is anticipated.
The hard working labor class should watch their wallets.
Interview/Chang Chun Edit/Huang Yimei Post-Production/Sun Ning