Looks like the big one will happen in the second half of this year.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
BEIJING, March 31 (Xinhua) -- A month of heated debate, guesswork and worrying has ultimately come to an end with cities across China confirming details of planned property curbs that have loomed large over the market.
Beating the buzzer at the approaching deadline, municipalities including Beijing, Shanghai and Chongqing, along with Hefei of Anhui Province and Xiamen of Fujian Province, on Saturday announced precisely how they will implement the central government's regulatory plan set earlier this month.
Homeowners who sell will face income tax as high as 20 percent of the profit they make on the transaction. With no firm timeline set for the imposition of the measure, which is designed to cool the red-hot property sector, many are racing to sell.
South China's Guangdong Province was first to detail its implementation of the measures on Tuesday, and the rumor spread that other big cities would publicize curbs on Sunday.
All the announcements basically followed the central measures aimed to cool down the abnormally expanded property market, while the specific plans made by individual cities aroused great public interest.
Beijing ruled that single adults with a permanent Beijing residence registration, who have not made purchases in the city before, are allowed to buy only one apartment.
Shanghai said banks will be banned from giving loans to local residents who are buying a third apartment or more.
The two mega-cities both vowed to strictly implement the 20-percent tax on capital gains from property sales.
Southwestern municipality Chongqing said the rate of growth in home prices will be kept slower than per capita income, and pre-sell permits will be suspended in the case of overpriced houses or those with surging prices.
Hefei and Xiamen also attached importance to stabilizing home prices and slowing increases to a level citizens can bear.
Yin Zhongli, a finance researcher with the Chinese Academy of Social Sciences, spoke highly of the Beijing measures as stricter ways to cool the market and make home and land prices stable.
"The measures, except those of Beijing, turned out to be less detailed but just more of the same," A microblogger with the screen name "Yanghongxu" wrote on Sina Weibo, a Chinese Twitter-like microblogging platform.
Microblogger "Laoaiguancha," a financial columnist of Sina.com, regarded the measures as still too mild, sufficient to fulfil the central government's requirements but not to cut down home prices.
Famous microblogger "Ren Zhiqiang," president of a real estate company in Beijing, stayed true to form in never missing a chance for online discussion, reiterating his opinions against applying administrative tools to interpose the market.
Jia Kang, a researcher with the Ministry of Finance, said the regulations need a clearer definition of how to calculate the property gains from transaction profits.
In fact, the situation in Beijing topped all the topics discussed because of its measures to tackle profiteering, with the capital specifically imposing a limit involving marriage.
"Caijingwang" borrowed a joke about a couple with permanent Beijing residence registration deciding to divorce on Friday, simply so they could buy another house, only to find their bold move in vain when the measure of "allowing a family with a single adult to have one apartment" was introduced on Saturday.
Under the current policy, each Beijing family is entitled to have at most two homes, which has created a "fake divorce" phenomenon every time a regulation on the property market appears.
The official Sina Weibo microblog of the People's Daily worried of the "fake divorce" trend in recent weeks that those "divorced" to take advantage of loopholes will have to remarry as soon as possible.
However, real estate agents like Zhongyuan and 5i5j both said such a phenomenon was rare, and people investing in real estate are unlikely to choose such complicated and risky way to do so.
The curbs may be less than meets the eye. Other than possibly Beijing, it all seems to be enforced through stopping bank loans. Hardly any families are going to want to have more than 2 mortgages anyway, and 20% deposit is not as hard as it sounds because family groups club together to stump up the deposit anyhow (it is not like Australia and the US where lenders look for real savings).
In other words, it is not going to make any difference to the cash buyers in most places.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
The five measures intended to control housing prices issued by China's State Council appear to be incapable of restraining the market in the country. Housing prices in 100 Chinese cities jumped for the fifth straight month 5.34% year-on-year in April, higher than March's 3.9% growth rate, and advanced for the 11th month in a row, according to a China Index Academy report.
Statistics show that average new residential housing price in the 100 cities reached 10,098 yuan (US$ 1,640) per square meter in April. Seventy six cities witnessed growth in housing prices in April, eight less than the number in March, while 24 cities recorded sequential decline in housing prices, with Jilin city scoring a 2.09% drop year-on-year.
In April, the 10 largest cities in the country, including Beijing and Shanghai, scored 1.31% average sequential growth in housing prices, higher than the sequential growth of 1.25% in March, with Beijing recording 3.11% sequential growth, the highest among the 10, and Tianjin registering 0.56% sequential decline, the only city which showed a decline.
Average housing prices in China leaped 7.89% year-on-year in April, with Beijing, Guangzhou and Shenzhen registering over 10% growth, Nanjing, Chengdu, and Chongqing recording 7%-8% growth and Shanghai, Wuhan, Tianjin and Hangzhou increasing 1%-5%.
The report points out that following the rollout of the market reforms in April, transaction volumes for both new and secondhand houses dropped in major cities from their peaks in March and sequential growth rates of average housing prices in those cities were also lower. In addition, the number of cities with declining housing prices was growing.
Property industry expert Ren Zhiqiang however stresses that the five measures will not have much influence on housing prices, as evidenced by the appearance of some plots of land with sky-high prices in first-tier cities. Ren noted that prices will rise moderately this year, citing moderate economic upturn, the urbanization policy expanding housing demand, and lower growth in the supply of new houses.
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