rogerluli Posted January 11, 2008 Report Share Posted January 11, 2008 I predicted it would happen and here it is... Tony did you bail out in time??? HOUSE prices in Beijing dropped 19.67 percent in December from the previous month, China's Central TV reported. The average residency price dropped to 12,180 yuan (US$1,676) per square meter from 15,162 yuan. Prices in Dongcheng, Xicheng, Chongwen and Xuanwu, the districts with the highest house prices, slumped to 18,401 yuan per square meter from 23,467 yuan, the CCTV report said yesterday, quoting SouFun Holdings Limited. Many local property companies had to sell homes with free decorations and appliances due to the slump in sales, according to a Beijing property company, which sold only 10 percent of its new houses in Zhaoyang District since October. Transactions in Beijing's secondhand house market shrunk 8.2 percent in December, Beijing's official online real estate trading Website said, which described the slump as abnormal. House prices in Shenzhen and Guangzhou began to drop in October. Transactions shrank more than half in October, the biggest drop in three years. The average price in Guangzhou plunged 20 percent in December. Link to comment
tonado Posted January 11, 2008 Report Share Posted January 11, 2008 Same here in USA. Link to comment
ameriken Posted January 11, 2008 Report Share Posted January 11, 2008 They didnt mention Shanghai......I wonder if that means it is holding, if not still growing? Link to comment
Corbin Posted January 11, 2008 Report Share Posted January 11, 2008 Real Estate is always an up and down market. The key is to buy in an area that will grow in value. Of course markets will change over the years and you want to pick an area that has traditionally gone up in value with few lost in values. I won't pretend to totally understand all of this, but this is my view point. Link to comment
Shenzhen K-1 Posted January 11, 2008 Report Share Posted January 11, 2008 I predicted it would happen and here it is... Tony did you bail out in time??? HOUSE prices in Beijing dropped 19.67 percent in December from the previous month, China's Central TV reported. The average residency price dropped to 12,180 yuan (US$1,676) per square meter from 15,162 yuan. Prices in Dongcheng, Xicheng, Chongwen and Xuanwu, the districts with the highest house prices, slumped to 18,401 yuan per square meter from 23,467 yuan, the CCTV report said yesterday, quoting SouFun Holdings Limited. Many local property companies had to sell homes with free decorations and appliances due to the slump in sales, according to a Beijing property company, which sold only 10 percent of its new houses in Zhaoyang District since October. Transactions in Beijing's secondhand house market shrunk 8.2 percent in December, Beijing's official online real estate trading Website said, which described the slump as abnormal. House prices in Shenzhen and Guangzhou began to drop in October. Transactions shrank more than half in October, the biggest drop in three years. The average price in Guangzhou plunged 20 percent in December. Rog any other info on Shenzhen?? My feng works for a very large real estate company there. The company did just switch management! Mark and feng! B) Link to comment
rogerluli Posted January 12, 2008 Author Report Share Posted January 12, 2008 I predicted it would happen and here it is... Tony did you bail out in time??? HOUSE prices in Beijing dropped 19.67 percent in December from the previous month, China's Central TV reported. The average residency price dropped to 12,180 yuan (US$1,676) per square meter from 15,162 yuan. Prices in Dongcheng, Xicheng, Chongwen and Xuanwu, the districts with the highest house prices, slumped to 18,401 yuan per square meter from 23,467 yuan, the CCTV report said yesterday, quoting SouFun Holdings Limited. Many local property companies had to sell homes with free decorations and appliances due to the slump in sales, according to a Beijing property company, which sold only 10 percent of its new houses in Zhaoyang District since October. Transactions in Beijing's secondhand house market shrunk 8.2 percent in December, Beijing's official online real estate trading Website said, which described the slump as abnormal. House prices in Shenzhen and Guangzhou began to drop in October. Transactions shrank more than half in October, the biggest drop in three years. The average price in Guangzhou plunged 20 percent in December. Rog any other info on Shenzhen?? My feng works for a very large real estate company there. The company did just switch management! Mark and feng! B) That's the whole story Mark...everyone knew that prices in the largest cities were poised for a fall... Link to comment
GDBILL Posted January 12, 2008 Report Share Posted January 12, 2008 I predicted it would happen and here it is... Tony did you bail out in time??? HOUSE prices in Beijing dropped 19.67 percent in December from the previous month, China's Central TV reported. The average residency price dropped to 12,180 yuan (US$1,676) per square meter from 15,162 yuan. Prices in Dongcheng, Xicheng, Chongwen and Xuanwu, the districts with the highest house prices, slumped to 18,401 yuan per square meter from 23,467 yuan, the CCTV report said yesterday, quoting SouFun Holdings Limited. Many local property companies had to sell homes with free decorations and appliances due to the slump in sales, according to a Beijing property company, which sold only 10 percent of its new houses in Zhaoyang District since October. Transactions in Beijing's secondhand house market shrunk 8.2 percent in December, Beijing's official online real estate trading Website said, which described the slump as abnormal. House prices in Shenzhen and Guangzhou began to drop in October. Transactions shrank more than half in October, the biggest drop in three years. The average price in Guangzhou plunged 20 percent in December. Rog any other info on Shenzhen?? My feng works for a very large real estate company there. The company did just switch management! Mark and feng! The real estate reality check and drop in prices began in Shenzhen. The biggest real estate company in Shenzhen lost almost all of their liquid assets (estimated, if I remember correctly, at about RMB 12 billion) when the owner ran off with everything. The trend nationwide now is for prices to drop in those markets where increases have traditionally been fueled by speculation. Shanghai prices have started dropping in certain sectors of the city and in others there are signs of prices going stagnant -- possibly a prelude to decline. Link to comment
Guest Rob & Jin Posted January 12, 2008 Report Share Posted January 12, 2008 Dropping in the 2nd tier cities as well, for example prices are falling in Kunming too , we going to watch and buy when it hits rock bottom. Link to comment
Guest knloregon Posted January 12, 2008 Report Share Posted January 12, 2008 Second home markets such as Sanya, likely will be hurt the most.. Wednesday the Wall Street Journal had an interesting article about a new Beijing--- (China's State Council) --- law that is directed towards real estate companies which hoard buildable land to keep condo prices high. Land value is reflected in the condo price, less land on which to build, higher prices, allso fewer condos ----exactly the way it works in Oregon, and particularly the Portland metro area, where the regional government has established an urban growth boundary. On paper this is a very strict law, but as always, it may be difficult to enforce, particularly in secondary cities. For years, developers and investment funds, some from overseas have bought up inner city land, and then just sat on it. This new law would make that impossible: "...the government says it will tax and ultimately seize, any land acquired from local governments that is left idle. The tax, of 20% of the land's purchase price, kicks in after a year; after two years, local governments can seize the land without compensating the developer." Man, thats tough...and we thought falling behind in our property taxes was bad... Have to think there will be quite a bit of rapid development in 2008 if this law has teeth. This new move follows on the heal of other more macroeconomic measures that are cooling the market such as raising reserve requirements and slowing lending. Article just mentions Guangzhou and Shenzhen---- that housing values have abated, and that purchase transactions are down---but no specif %.... Link to comment
Shenzhen K-1 Posted January 12, 2008 Report Share Posted January 12, 2008 I predicted it would happen and here it is... B) Tony did you bail out in time??? HOUSE prices in Beijing dropped 19.67 percent in December from the previous month, China's Central TV reported. The average residency price dropped to 12,180 yuan (US$1,676) per square meter from 15,162 yuan. Prices in Dongcheng, Xicheng, Chongwen and Xuanwu, the districts with the highest house prices, slumped to 18,401 yuan per square meter from 23,467 yuan, the CCTV report said yesterday, quoting SouFun Holdings Limited. Many local property companies had to sell homes with free decorations and appliances due to the slump in sales, according to a Beijing property company, which sold only 10 percent of its new houses in Zhaoyang District since October. Transactions in Beijing's secondhand house market shrunk 8.2 percent in December, Beijing's official online real estate trading Website said, which described the slump as abnormal. House prices in Shenzhen and Guangzhou began to drop in October. Transactions shrank more than half in October, the biggest drop in three years. The average price in Guangzhou plunged 20 percent in December. Rog any other info on Shenzhen?? My feng works for a very large real estate company there. The company did just switch management! Mark and feng! The real estate reality check and drop in prices began in Shenzhen. The biggest real estate company in Shenzhen lost almost all of their liquid assets (estimated, if I remember correctly, at about RMB 12 billion) when the owner ran off with everything. The trend nationwide now is for prices to drop in those markets where increases have traditionally been fueled by speculation. Shanghai prices have started dropping in certain sectors of the city and in others there are signs of prices going stagnant -- possibly a prelude to decline. When I talk to feng I will ask her about this?? She did have a management change very recently?? Link to comment
Guest Rob & Jin Posted January 12, 2008 Report Share Posted January 12, 2008 save your pennies guys its going to get cheap in the next year. Link to comment
rogerluli Posted January 12, 2008 Author Report Share Posted January 12, 2008 I would think that the last thing anyone would want to do now would be to buy in an unfinished and especially, unsold development... At the time of the Asian Monetary Crisis of 1997 a whole bunch of houses sat unfinished and empty for many years as developers went belly up... Link to comment
rogerluli Posted January 12, 2008 Author Report Share Posted January 12, 2008 Have to think there will be quite a bit of rapid development in 2008 if this law has teeth. If buyers sit on their hands because of fear of falling prices then developers will be looking for the nearest window to dive out of... not so much worried about losing their leases on land as ending up shining shoes... Link to comment
rogerluli Posted January 12, 2008 Author Report Share Posted January 12, 2008 Dropping in the 2nd tier cities as well, for example prices are falling in Kunming too , we going to watch and buy when it hits rock bottom. Rob could you please post that "ROCK BOTTOM" day here so we can all jump in... Link to comment
Tony_onrock Posted January 12, 2008 Report Share Posted January 12, 2008 A bit too late for me to bail out. Lost a bit of money in the real estate stock and engergy stock and just committed USD$1.2 mm in real estate investment. JUst have to hope that this drop is just temporary. It is a sword that cuts both ways. Last night just signed a contract for 2.3 b RMB for our company to buy a shopping mall and over the next three weeks expect to enter another contract for 1.4 billion RMB. For the first half of last year was not able to buy anything for our company. But since the market started to fall we have committed about 800 mm US. If it drops further, we will raise a third fund to invest. For my own loss on my investment and exchange rate, I just ask my company for a raise and bonus to compensate for it. Link to comment
Recommended Posts
Please sign in to comment
You will be able to leave a comment after signing in
Sign In Now