china property market revives despite controls
Last Updated : GMT 14:18:14
Arab Today, arab today
Arab Today, arab today

China property market revives despite controls

Arab Today, arab today

Arab Today, arab today China property market revives despite controls

Shanghai - AFP

After waiting for a year, accountant Qi Youdi has bought a new home in the eastern Chinese city of Hangzhou, among the millions of buyers bringing the country\'s property market back to life. For the past two years, China has sought to control residential property prices with measures including restrictions on second and third home purchases, higher minimum downpayments, and annual taxes in some cities on multiple and non-locally-owned homes. The moves, announced in the first half of 2010, have cooled the once red-hot market, with analysts estimating prices nationwide have risen only four to seven percent since then. But pent-up demand, easing government monetary policy and inflows of speculative funds from overseas betting on a recovery have brought the property market out of the doldrums, analysts said. Sales volumes have jumped, with the total transaction value up 10.4 percent year-on-year in the first 11 months of 2012, the National Bureau of Statistics said. Prices, though, remain relatively stable, with average home prices in 100 cities rising 0.26 percent in November to 8,791 yuan ($1,410) per square metre according to research institute the China Index Academy. It was the sixth consecutive monthly rise, totalling 1.23 percent, after nine months of falls. At the height of the boom prices were rising at an average of 1.5 percent every month. \"We\'ve been looking for a suitable period of time,\" said Qi, who finally gave up waiting for substantial price drops. She was looking to buy a flat for her daughter to live in, with no intention of looking to resell at a profit. \"Since our demand is fixed, it doesn\'t matter whether home prices rise or fall,\" she added, after paying $222,000 for a 90-square-metre (970-square-foot) flat. The property sector has been a key part of China\'s economic boom in recent years, driving demand for materials such as steel and concrete and with ripple effects spreading far and wide. Reflecting the more solid picture, ratings agency Moody\'s recently upgraded its outlook for China\'s property industry to stable from negative. \"While the residential market is policy-sensitive, a sustainable recovery is projected for the next three years,\" real estate services firm Cushman and Wakefield said in a report released in November. But analysts rule out a strong rebound. The new Communist Party leadership is unlikely to scrap policies to make housing affordable, an initiative closely identified with Premier Wen Jiabao who is due to step down in March. The earlier price boom had pushed costs well above the reach of many people in China\'s rapidly emerging urban middle class, sowing widespread frustration, especially as some who bought previously have been able to parlay their gains into multiple acquisitions. The government controls have upset some market players, including developers who reaped riches during the boom years and local governments which earn money from land sales and taxes. \"We don\'t want constant regulation from the government,\" said Wong Chun-hong, chairman of high-end developer Top Spring International Holdings. But price stability is the watchword for government policy. Beijing fears that spiralling housing costs could fuel discontent and possible social unrest. \"Policymakers have little to gain from adjusting their current stance,\" independent research company Capital Economics said in a recent report. \"That means though that a period of stability in real estate investment after the weakness of the past year might be the most we can hope for over the next few quarters.\" Nie Meisheng, head of industry group China Real Estate Chamber of Commerce, said: \"There won\'t be any drastic falls because of the \'iron floor\' of home prices,\" referring to high land costs that support prices of finished homes. But she added: \"There won\'t be any chance of a sharp rebound in home prices as the government will not allow it.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china property market revives despite controls china property market revives despite controls

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china property market revives despite controls china property market revives despite controls

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday