China’s ‘Golden Era’ for Property Over

[Lux de Veritas]

Plan, i have bought an apartment in my hometown. Just prepare for another small one in SZ with a reasonable price. The 2nd pic is my new 140m2 apartment still building =).

So im waiting for the time of reasonable house price coming, if not i will invest in other place. Anyway increasing personal incomes is the important thing for house market.

Dude, you are so rich.

 

[cnleio]

Dude, you are so rich.

Trust me, im the poor.

I just bought the apartment in another 2nd-line city of East China not 1st-line big city like BeiJing/ShangHai/GuangZhou etc, even for me it's not easy to afford the house price, and i get some helps from my family.

I still did not buy my private car (car is much cheaper than house price), take subway to my office =). Im the POOR !

 

[Lux de Veritas]

Trust me, im the poor.
I just bought the apartment in another 2nd-line city not 1st-line big city like BeiJing/ShangHai/GuangZhou etc, even for me it's not easy to afford the house price.

Just want to ask you guys who stay with parents.

I admit I am staying with parents. My parents are richer than me not because they are capable. But because they manage to bought 3 apartments (still own banks a lot of monies) when the price are low at the time Lee Kuan Yew are not that oppressive against the people.

Then they become landlord and collect S$ 4000 a month, that is 20,000 CNY.

I often say that the high property price transfer wealth from the young people to the old, someone like my parents. When property price is high, the rent will be high, and my parents cheer.

The rent is a tax on us, the young people.

 

[djsjs]

Plan, i have bought an apartment in my hometown. Just prepare for another small one in SZ with a reasonable price. The 2nd pic is my new 140m2 apartment still building =).

So im waiting for the time of reasonable house price coming, if not i will invest in other place. Anyway increasing personal incomes is the important thing for house market.

taiyuan?how much per square metre

 

[cnleio]

Just want to ask you guys who stay with parents.

I admit I am staying with parents. My parents are richer than me not because they are capable. But because they manage to bought 3 apartments when the price are low at the time Lee Kuan Yew are not that oppressive against the people.

Then they become landlord and collect S$ 4000 a month, that is 20,000 CNY.

I often say that the high property price transfer wealth from the young people to the old, someone like my parents. When property price is high, the rent will be high, and my parents cheer.

The rent is a tax on us, the young people.

Around my frineds (20-30age young ppl), i find out few Chinese young ppl to live with parents now, many go to work in another cities of East China not in parent's city.

taiyuan?how much per square metre

NanChang, 9k -10k RMB/m2 for new building residence community now. My house bought in 2011 it's a big residence community will finish whole building at 2015 early. Damn, i didn't work in NanChang =).

I don't know TaiYuan.


NanChang, the captial of JiangXi province

 

[cnleio]

@Lux de Veritas U r the standard rich boy / 富二代, Chinese girls will love u. LOL !


The 1st pic is my parent's residence community, i ever lived there.

This building residence community is mine =) but i was not in NanChang now.

 

[Lux de Veritas]

@Lux de Veritas U r the standard rich boy / 富二代, Chinese girls will love u. LOL !


The 1st pic is my parent's residence community, i ever lived there.

This building residence community is mine =) but i was not in NanChang now.

I am a poor man. Every month I have no monies left. My parents are ok but they are in too much debt because they bought property.

Property crash, they get wipe out.

 

[Jlaw]

Thank your for share, @JIaw. Just ask, how many income for local average family per year (U.S dollar) ?


.

Avg gross family income (before taxes are deducted) is approximately $105,000 CAD/year in city of Toronto. It's crazy a single person making $80,000/year cannot afford a house in Toronto!

Most of the new houses outside of Toronto are purchased by mainland Chinese. New detached houses outside of Toronto in Richmond Hill are bigger but has a smaller lot cost anywhere between 750,000 to 1,100,000 each. Local Canadians are wondering how new immigrants have so much money to spend.

 

[cnleio]

Avg gross family income (before taxes are deducted) is approximately $105,000 CAD/year in city of Toronto. It's crazy a single person making $80,000/year cannot afford a house in Toronto!

Most of the new houses outside of Toronto are purchased by mainland Chinese. New detached houses outside of Toronto in Richmond Hill are bigger but has a smaller lot cost anywhere between 750,000 to 1,100,000 each. Local Canadians are wondering how new immigrants have so much money to spend.

Need cool down China house market, let some Hot-Money flow into foreign. For China economy healthy development, Mr Xi should deal with it.

 

[Jlaw]

Need cool down China house market, let some Hot-Money flow into foreign. For China economy healthy development, Mr Xi should deal with it.

China need to cool down housing market. You do not want to have the same thing like US in 2008. Canada will have a housing financial crisis in the future.
Speculation on housing does not add value to the economy.

 

[Contrarian]

I think it is best for a country to not have high property prices.

These bubbles which keep raising property prices are horrible for the common man on the street who finds it harder and harder to buy an apartment.

The only one who profits from such increase in prices are speculators and investors. Its never very good for an economy to have very high prices of land.

So for any developing country, price rise of land must be very slow. I hope that is the case in India as well in the future. The decade of property bubble has made it almost impossible for the middle class to buy a house.

 

[cnleio]

I think it is best for a country to not have high property prices.

These bubbles which keep raising property prices are horrible for the common man on the street who finds it harder and harder to buy an apartment.

The only one who profits from such increase in prices are speculators and investors. Its never very good for an economy to have very high prices of land.

So for any developing country, price rise of land must be very slow. I hope that is the case in India as well in the future. The decade of property bubble has made it almost impossible for the middle class to buy a house.

High price house market is the cancer for a developing country, bad bank loans & less investment in other industries both will hurt economy healthy development. Only left the rich rob the middle & the poor class.

 

[cnleio]

LOL, @Lux de Veritas u got banned ! What's reason,buddy ?

 

[TaiShang]

Home prices post first drop in 23 months


China Daily, June 1, 2014

Home prices in major Chinese cities posted their first monthly decline in nearly two years in May, an independent survey showed on Saturday, providing new evidence the once red-hot market is losing steam.

The average price of a new home in 100 major cities declined by 0.32 percent from April to 10,978 yuan ($1,750) per square meter, according to the China Index Academy, the first fall since June 2012.

Potential homebuyers inspect models of housing developments in Beijing. [China Daily]

Prices dropped in 62 cities and were unchanged in one, according to the academy, the research unit of the real estate website operator Soufun.

The biggest monthly fall was in Shantou, Guangdong province, where prices slumped 3.64 percent compared with April.

"Rising market supply and sharp falls in transactions have put relatively heavy pressure on property developers' sales, leading some to beef up promotions and adjust their pricing strategy," the academy said in a statement.

Year on year, new home costs rose by 7.84 percent in May, 1.22 percentage points lower than April and the fifth consecutive month the increase has slowed, it said.

But, in 31 of the 100 cities, prices fell on an annual basis, with those in Wenzhou - a center of private enterprise and lending in the eastern province of Zhejiang - dropping most, down 8.30 percent.

The survey added to signs that China's property market is cooling, with analysts pointing to factors including stringent bank loan criteria, expectations of falling prices, and financial trouble among developers.

The government has sought for more than three years to contain rising property values, while also promising to add to the supply of affordable housing, as price increases stoke discontent among ordinary citizens unable to afford new homes.

Market control measures have included restrictions on purchases of second and third homes, higher minimum down payments and taxes in some cities on multiple and non-locally owned homes.

But, at the same time, local authorities make much of their income by selling land to developers, and have often rushed to loosen limits on purchases when property prices have fallen.

Among China's 10 biggest cities, Nanjing, in Jiangsu province, saw the biggest fall in May, with prices declining 1.36 percent month-on-month, the statement showed.

Only two places - Beijing and Tianjin - saw new home prices rise, with the average cost in the Chinese capital rising 0.69 percent from April to 33,472 yuan per sq m.

 

[BoQ77]

@Viet @NiceGuy @BoQ77 @Soryu @EastSea What's current situation for Vietnam house market ?


@Peter C @Krueger @gambit What's current situation for America house market ?


@Nihonjin1051 What's current situation for Japan house market ?

Vietnam house market just sufferred a freeze state, but that needed for a reduction in price.

Vietnam house market characteristics as follow :
1. People paid nearly 100% in advance to get the key ( for example: 30% when sign the contract, meanwhile the project still not finish the basement, 30% when finish a half of structure, 20% when finish the structure, 20% before get the key ) .
Some projects last longer than expected or never finished, and the buyers could lose their money if the investors run away.

2. The housing market made some big bubbles when they could always earn money by buying apartments or villas and resell them at higher prices.
But now everything changed, the price reach the reality state. Real demand now could satisfy not too hard.

3. Prices always depends on location, central, downtown, suburb ...
For Hanoi, apartment for low income people ( distance about 12-14 kilometers from city center ) cost about $400-450 / m2, 70m2 apartment cost $28,000-31,500 47m2 apartment cost $25,800 incl. VAT ; buyers could pay during 20-30 years after down payment 30% in advance. As you know average low income in Hanoi for household about $8,000/year, means 47m2 apartment price equal about 3 years of household income.

Apartment in the city cost about : $700-1700 per sqm, total for 70m2 : $49,000 ($700 / m2 ) ( low average household income about $8,000-10,000/year ) , for household go for $1200 - 1,700 / m2 : their income about $12,000-18,000 / year.

I have never experienced the living in apartment before, for my house in city center, it costs from $12,000-15,000 /m2 for land cost. I built up the 8 storey building with construction area about 600m2, we live in penthouse-like top 2 floors. 8 person in the family, under for leasing ... The cost for constructions about $180,000 - 200,000.
I don't have a car, because I have no driving license, and it also hard to keep a car around the city center, really uncomfortable ( parking, traffic jam, accident, police ... ). It's best to use taxi, bus or our own motorbike. For long distance, we rent the car with driver, mentioned that you will never dare to drive in Vietnam by yourself.