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Thread: Can property tax ease the high housing prices?
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[quote=DODGER,419052]The use of the term ‘Bubble ’is to presume that the housing market in China is driven by a free market. It isn’t. You cannot buy freehold. At the best you can purchase a 70 year lease. No one can tell me what happens after the 70 years is up. No one that I know has been able to explain how the land is allocated to Developers and at what price. The cost of construction does not relate to the prices that apartments are sold. Developers will not give a discount. It was revealed last year by an electricity company that 70 million electric meters fitted in new apartments remained idle. That effectually means that 70 million apartments sold in the major cities in China remain vacant. That equates to more than the combined population of Australia, New Zeeland and Finland. You will receive a negative return on your money in a savings account when you factor in inflation. In short I believe that housing prices are tightly controlled by the central government to suck back in the vast amounts of baksheesh that is floating around. Add the millions of workers that are employed in this industry, not just in the construction but in ongoing employment, and I see no chance of this ‘Bubble’ bursting soon. Dodger. [/quote]
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