| Seven sins for skyrocketing house price in Beijing | |
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| Jun 28, 2007 23:17 |   |
 | In May 2007, the house price in Beijing increased 10.3% compared with the same period last year. Beijing is one of the three cities where the house price rises the most rapidly. China has begun investing the real estate market to find the reasons why the house price rises so rapidly. However, the investigation is still being carried on. Now let's see the seven sins for the skyrocketing house price in Beijing found by the media. No.1 The developpers hold the houses and do not sell them. They are waiting for the higher price. They still believe that the price will continue to rise. Beijing Olympic Games is a oppotunity for those developpers. Some of them say that the house price continues to rise when the Olympic Games is coming. No.2 The land is limited. More and more lands have been developed into commercial houses. There are less and less land can be developed. No.3 People become crazy. More and more people want to buy their house. To some extent, they are not reasonable and 'help' raise the house price. |
| Jun 29, 2007 00:41 | #1 |
| No.4 Those house buyers can be divided into two groups: People who buy a house for living and people who buy a house for investment. The latter buy a house and wait the house price rising and rising. Finally, they will sell the house to make money. Those developers find that the population of the first kind people is increasing. Thus, they raise the house price. Those people who want to buy a house for living have on other way except buying the house. Actually, they have paid too much. No.5 In recent days, China's stock market is not stable, sometime rising crazily and sometimes dropping sharply. When the shares drop sharply, those investors give up investing in the stock market and begin investing in real estate. Compared with shares, investing in real estate is safer and never become devaluated. Thus people choose to invest in real estate instead of stock market. No.6 The land price is another factor. At present, there are less and less land. Therefore, the land price is increasing. An offical in Beijing said that the land price increased 9.8% in the first quarter compared with laste year. However, the house price just increased 5.6%. If there is no land, how can those developers build houses? No.7 The price is decided by the supply. More and ,more people want to buy a house. B |
| Jun 29, 2007 00:50 | #2 |
| No.7 The price is decided by the supply and demand. More and more people want to buy a house. But the supply of the houses is limited. It can not meet everyone's demand. On the other hand, those developers develop the luxurious houses for the rich because those houses can bring a lot of money. On contrary, those economical houses for the ordinary people are less and less. In your opinion, what makes the house price rising crazily? |
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