Home >

Stability Of The Property Market Is In Line With The Interests Of Most People.

2010/4/22 16:47:00 28

Market Stability

Pull up, panic, sell, the property market has recently staged "last Craziness" and "speculator escape".

The fear of the central heavy punches also appeared in the stock market. The real estate sector plummeted, dragging the market off the 3000 point mark and setting its biggest decline in 8 months.

At present, the impact of these fears on the market continues to ferment.


In terms of property market, speculators and developers are in a state of uncertainty, with cities like Beijing and Shenzhen showing the most outstanding performance.

According to media reports, although the price of Beijing's leading property has been reduced to 4000 yuan or even 7000 yuan, the number of buyers has decreased by 80%, and the number of owners eager to sell property has soared. The phenomenon of selling hundreds of apartments in Shenzhen has been predicted. Insiders predict that the inflection point of the property market may arise.

As for the stock market, as of April 20th, the real estate sector collapsed and fell for many consecutive days.

The stock market is shaded.


It should be pointed out that the real panic in the market is only a small number of people. It is precisely speculators, and most people understand and support the decision and deployment of central heavy punches against real estate prices and curbing the rapid rise in housing prices.


The housing problem is related to the national economy and the people's livelihood. It is not only an economic issue, but also an important livelihood issue affecting social stability.

Too high housing prices and rising housing prices not only increase the difficulty of residents solving the housing problem through the market, but also increase financial risks, which are unfavorable to the coordinated and sustained development of the economy and society.

Market regulation

The introduction of the new deal is the aspiration of the people.


At present, the industry's concern is that the property market may be cooling rapidly, and the fundamental problem has not been resolved, and will inevitably fall into the vicious circle of "regulation - price retaliatory rise - re regulation".

Because the current real estate has "kidnapped" the Chinese economy to some extent, the probability of such reincarnation has increased.


Further, with the introduction of the "ten new countries", the government will also have a series of matching "combination punches" to squeeze out the property bubble, including the levy on property holding links may not be far away, and so on.

That is to say, there may be more stringent regulatory policies in the future, which means that the "panic" in the market will continue and expand, thereby affecting the future trend of the property market.


However, for policy makers or executors, this so-called "panic" can not be ignored, but there is no need to throw away the mouse.

In fact, as housing prices have doubled in the past few years, especially in some of the first tier cities, the past one or two years have risen fiercely. Even if housing prices drop by 50% or even 100%, developers still have money to earn, and most of the first class speculators have already made profits.

What the government departments should pay more attention to is that if the crazy rising trend of the real estate market is not effectively contained and continues to be intensified, it may be more frightening than the panic consequences brought by the fall of house prices.


In any market, prices will rise and fall, which is a natural thing.

The same is true for the property market and the stock market.

In the face of the persistent madness of the property market, we must get rid of the vicious cycle and squeeze out the bubble so as to return to the track of steady and healthy development.


Overall, the possibility of a slump in the property market is unlikely. The main reasons are: first, in the long run, the fundamentals of the property market have not changed. With the continuous improvement of urbanization and people's income level, housing demand is still strong. Two, China has entered a new round of inflation.

RMB appreciation

Cycle, domestic prices, currency devaluation, investment channels are scarce, and the international market.

RMB appreciation

More and more pressure, a large number of domestic and foreign funds, including hot money to continue to enter the property market is still inevitable; three, developers have been earning a lot of money, the carrying capacity is generally strong, the price of a large area of "jumping building" is unlikely; four, the government's basic tone in regulating the real estate market has been "stability", rather than want to see ups and downs, the flexibility of regulation and control policy is very strong.


In short, the adjustment of the property market belongs to the process of defoaming, and moderate adjustment is unavoidable, but overall it will remain relatively stable.

This is also in line with the interests of the overwhelming majority of people.

  • Related reading

Zhang Monan: US Financial Capital "Moral" Credit Collapse

Expert commentary
|
2010/4/22 16:46:00
27

Chen Changhua: Who Paid For The Collapse Of Real Estate?

Expert commentary
|
2010/4/22 16:38:00
16

Zuo Xiaolei: The Strength Of Issuing The Central Bank May Also Increase.

Expert commentary
|
2010/4/22 16:37:00
17

Xie Guozhong: Pressure On Property Market To Curb Bubbles

Expert commentary
|
2010/4/22 15:16:00
26

Ye Tan: Spin Off To Encourage "Monster Stocks" And Speculators

Expert commentary
|
2010/4/22 14:31:00
25
Read the next article

Ye Tan: Real Estate New Deal Is The Precursor Of China'S Economic Structural Adjustment

The new real estate policy launched in April is not only limited to the real estate market itself, but an important part of China's economic withdrawal from the stimulus policy and China's economic restructuring. In the future, China will enter the economic pattern of declining asset bubbles and rising CPI pressure. In terms of the market, the real estate market has launched a tough new deal. The stock market has adopted the gem, pushing down margin trading and stock index futures. Inves