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The real estate market in Shanghai enters into another crazy period. No matter how many experts or the government official expected the house price will go down, it continued to raise like crazy.
This weekend is another crowded weekend. Out of my window in the apartment in Pudong, I saw batches of house agents bringing their client to visit one house after another. I guess there are about 20 of them.
In the morning, when I leave my apartment early, the house agents are already standing at the entrance, and distribute their flyers - some rude one just throw it into our car window. At each intersection of our area (Chengshan Road and Jinxiu Road in Pudong), there are house agents occupying each of the four quarters. Some of them layout tables and some layout some bill boards, and others just standing there with their iconic ties, white shirts, or a badge.
Look at the house price, it went on and on and on and on to the north. A recent report I read from the Youth Daily, the second hand house volume in the first half year has been higher than the last year the whole year.
My suspected reasons are:
1) Loans and Morgages are loosened. Most of the restrictions on second and third house loans are lifted, and people can get loans as they wish.
2) The expectation for large scale RMB inflation.
I don't know the reason (and I cannot confirm it), but I can confirm what I saw these days - a crazy market with huge volumes of transaction. Just count how many houses around myself (my friends) were sold out or bought - it is more than the last two year combined.
by Jian Shuo Wang on June 28, 2009 under Real Estate
looks like the rental price going to again... and the rich going to richer in Shanghai... and the middle class will not able to have their own house... sigh...
Posted by: DC on June 29, 2009 12:15 AM1. Seems like you enjoy talking this topics again and again.
2. isn't it a good sign ? China or Shanghai is booming ! Everyone seems to be interested in property investment. Don't you want to jump into the wagon as well ?
3. There is abundance of opportunities in Shanghai. Only the hardworking one will yield the benefits. And the lazy one will be left behind. Grab the oppotunities now !
4. This is new China !
Just like the United States, this too, shall end badly.
On a separate note, did you see the story about that fallen building in Shanghai? Or, rather did you see the 13 story fallen building?
The quality of all of this construction is highly questionable.
Posted by: Давид on June 30, 2009 5:22 AMthe funny thing after the building collapse, all the 13 floors are still intact... in one piece! It didn't break into pieces.
Posted by: DC on June 30, 2009 10:12 AMChina is the equivalent of Japan in 1986 in fostering the largest bubble in human history. I will give it another 3 to 5 years before it crashes and burns. Until that happens, lots and lots of capital, resources and people will be sucked into that vortex of Chinese mania, aided by the government-dominated media propoganda and misleading articles of bloggers such as Mr Wang. Lots of people will ultimately shed tears and even blood for that.
The career path of the two most-idolized sportsmen in China, Liu Xiang and Yao Ming, vividly symbolizes the future trajectory of that China or Shanghai balloon.
http://sports.yahoo.com/nba/news;_ylt=As8ViSgrrJCLqtcubrGnSbC8vLYF?slug=aw-yaorockets062909&prov=yhoo&type=lgns
http://www.dailymail.co.uk/sport/olympics/article-1046475/China-distraught-Liu-Xiangs-Achilles-heel-dashes-golden-dream.html
hey, i dont think in shanghai a couple can easily afford house down payment about 200K RMB in 6-9 years just depend themselves. BTW, as the 200k rmb for 20 percent down payment you could calculated the house total price and definitely the suburb area.
Posted by: HJ on June 30, 2009 11:15 PMGuess a lot of foreign funds (or even TARP residue or "queasy" money) is coming in since the rest of the real estate & loans market worldwide is practically dead. Talk is cheap but now money is even cheaper!
Posted by: Jet So on July 1, 2009 9:46 AM