| Who is the mastermind behind the skyrocketing house price? | |
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| Jun 25, 2007 02:39 |   |
 | The rising house price has become one of the biggest concern of both average people and governments at all levels. According to sources, the house price is increasing in the whole China. However, what are the factors that trigger the constant increase in house price? The main cause is speculation. According to a survey on Shenzhen's real estate market, speculation domoinates the marketplace. Many real estate developers and investors make a Faustian bargain.Some investors buy the houses at a low price, while resell at a quite high price. In other words, some developers maliciously manipulate the real estate market.In this way, the real estate developers and investors achieved a win-win situation, whereas, the grassroots have to fall victim to their bargain. The banks should also be blamed for the violent rising price. The banks lent a large amount of money to real estate developers without careful and strict scrutiny. The large amounts of loans is improperly used in expanding real estate industry. There is quite a strange phenomenon that where the house price increased at a more rapid rate, where the more money will pour in. It seems that banks are bullying the weak and back the strong! |
| Jun 25, 2007 03:22 | #1 |
| That is why the government is intervening in adjusting the house price. The market law is not almighty. To solve the problem thouroughly, administrative means is needed. |
| Jun 25, 2007 04:39 | #2 |
| It is said that only the CEOs, high officials and senior managers can able to afford a house if the price keeps on roaring in ten years. Most of citizens living in big cities will have to hire a house, or else they will be homeless. Is that true? |
| Jun 25, 2007 19:44 | #3 |
| Will we become refugees? " Drifting involve least living" |
| Jun 26, 2007 06:58 | #4 |
| Buy low, sell high. What is wrong with that? When nobody will pay the high price, the price will come down. Easy. |
| Jun 26, 2007 19:50 | #5 |
| When nobody will pay the high price, the price will come down. Easy. Good idea. Hoewever, the rich have a lot money and they could afford the house. |
| Jul 2, 2007 20:50 | #6 |
| "Nobody pay the high price" Impossible, at present, average Chinese have the mentality that Keeping up with the rich is their ultimate goal. That is to say, the rich has the money to buy luxurious house, while though we are not affluent enough, we try to borrow money to buy an appartment, just to appear rich in front of others, |
| Jul 13, 2007 23:03 | #7 |
| Who is to blame ? The buyers & to an extent the Govt. Despite the complaint about rising prices, these units are well sold I heard. Basically & generally one has choices - obviously people choose to buy even at that sort or prices. Only you cannot afford !! Will you buy if you could afford ? This will be a normal feature of a capitalist society which China is moving towards. The days of free/subsidised housing ( or most other bread & butter items ) are over. Banks are there to make money - they are not there to gain popularity by trying to make less. They are not there to help the customers who have no money/collaterals(for loans). They can only provide better services to attract customers which mean more business/more profit to them. Even when China opens up to foreign banks, I cannot see any basic difference these banks will be from local banks. Be prepared. |
| Jul 15, 2007 20:47 | #8 |
| GRYOKAN, thanks for your valuable opinions, China is changing. Market economy is characterized with least interference of government. Businesses are profit-oriented, but they should also have social responsibilities. State-owned banks are also being commercialized. They cares about nothing but profits, hence bullying the weak and back the strong. |
| Dec 3, 2007 00:36 | #9 |
| GUESTCHRISTINA | hehe, I just love this topic. you know what? I am doing an english expository essay on it. My reasons for this phenomenon: 1.the urbanization of the modern China result in the flood of population in the cities who need accomodations 2 the speculation(overheated investment) 3.the government help generate it : the unreasonable house supply structure the government fail to control it : lack of laws which regulates the unheathy investments lack of providing the economical houses for the poor |
| Dec 7, 2007 02:38 | #10 |
| GUESTHOUSE | GUESTCHR, Is it the result of your research? Where did you conduct your survey? |
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