Thursday, October 14, 2010

Beijing house prices will not fall into fiveMoncler JassenUGG Knightsbridge

Beijing real estate sector is the recent hot market inflection point occurs. There are well-informed analysis, perhaps in Beijing on June 30 before the introduction of the real estate tax. If the policies issued, means that China's real estate control policies is much more severe than imagined, callback rate prices will be hard to imagine.
many factors affect the market trends,Moncler Jassen, including the fundamentals, liquidity, as well as expected. awash in liquidity, interest, low-cost case,UGG Knightsbridge, asset prices generally difficult to substantially cut . But when the policy inflection point appears, the accumulation of short years under the influence of forces will produce the expected kinetic energy is difficult to measure.
price changes will occur first in the secondary housing market,Chaussures UGG Pas Cher, developers after a short wait, he will join selling the team, the rapid decline in new home prices will then.
market Guaitou early, smart speculators will sell quickly shot hand held housing. Because you do not throw, people will throw. Game Theory, there is a well-known theory called \everyone was worried about another person might run away before their own, so that everyone feel that their best option is to start and. this time instead of individual rationality of collective rationality, we see the situation of fighting for selling price, which led to the Housing rapid decline in prices. The reality is that those who expect highly leveraged real estate by persons of credit, the credit crunch due to become a cast room, \one can predict the final outcome of it.
the formation of house prices once the market consensus, it decreased the rate and magnitude are unimaginable. In my opinion, first-tier cities like Beijing, house prices fell 50% is a reasonable space.
mainly for two reasons. First, if the price is down only two or three into, apparently did not fall through. Even the middle of a rebound, they are all down relay type. because of the past year, house prices rose tier cities more than doubled, while the prices of high prices, driven mainly by speculative demand. In other words, house prices fell in half, just before soaring back to the starting point last year. And house prices only go back to this location, home type of consumer demand can be active in order to expand real estate consumption.
Second, the decline would lead to \,UGG Online Shop, the general common law of the market. If the market in general believe that house prices fell into three, then shot a number of selling as soon as possible, must sell properties at lower prices, so prices fell more than more than market expectations.
course, due to ample liquidity The market also worried that prices will rebound. However, due to increasing pressure on Chinese inflation, interest rate policy may be introduced at any time. Once the liquidity crunch,Moncler Jas, the real estate market will enter a long-term adjustments, real estate development patterns also occur great changes.
Some people think that the Government is afraid of falling house prices,UGGS Kopen, in fact, be seen as early sighted, the so-called real estate kidnapping the Chinese economy and the government's argument is actually a pseudo-proposition. not so much a kidnapping, it is more collusion. when the property the impact of social stability, will break the existing interests of the alliance, investors and developers are doomed to be sacrificed. Besides, the government can use fiscal and financial means to protect the bank safe, secure, banks will not die.
lower prices may lead to decline in real estate investment, thereby affecting the industrial chain of other industries. This will happen in the short term, it is to adjust the price. but positive look, you will find the push for government protection of housing construction, but also led the development of downstream industries. more Importantly, prices fell to a reasonable position, can not afford to buy a house, originally to enter the market, it will restart a new round of consumption and real estate development and investment, not only benefit the healthy development of the real estate itself, but also good for people to live and work,UGG outlet, and then expand consumption and stimulate domestic demand and promote economic growth mode transformation.
So, the short term, the price adjustment cost,UGG Online, but comprehensive income is greater than economic costs. In the long run, house prices return to reasonable price range, but also conducive to the healthy development of China's economy and transition.
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