Shanghai Mayor Seeks to Check ¡®Too High¡¯ Home Prices

[N&J]

http://www.bloomberg.com/apps/news?pid=206...id=aHAfpKg7JALU

 

 

hao bu hao?

[GZBILL]

So Shanghai is going to follow New York with price controlled housing?

 

Sweet, capitalism at work.

 

Not going to happen.

 

The Shanghai mayor is always spouting this drivel and, in the end, they can never do anything.

 

They've tried taxation. Failed.

 

They've tried tightening mortgage qualifications. Failed.

 

They've tried property development restrictions. Failed.

 

They've tried restricting sales to expats. Failed again.

 

The methods mentioned in this article sound nice in the press, but even if -- and it's a BIG if -- they can put them into practice, it will take several years AND any impact -- IF there is any impact -- will be minimal.

 

My bet is that the Shanghai mayor is spouting off at the mouth posturing to 1) get more of the Shanghai working poor in line and 2) getting himself a roadside box at the National Day parade within sight of Hu Jing Tao.

Edited August 6, 2009 by GZBILL (see edit history)

[knloregon]

"My bet is that the Shanghai mayor is spouting off at the mouth posturing to 1) get more of the Shanghai working poor in line and 2) getting himself a roadside box at the National Day parade within sight of Hu Jing Tao."

 

China's major east coast cities have sprung right back to major bubble status in real estate---- apparently, China is too new to free enterprise market forces to exercise any restraint in buying and selling real property.. My prediction is that once again (second time in less than two years) ---- real estate will crash----catching not only the purchasers, but also the lenders... someday they will learn on their own---without gov. intervention in price controls...

[Smitty]

I doubt that anyone will learn.

 

We should have learned from the collapse of Japan's bubble economy, but we let the crooks run the show, and the crooks couldn't remember what the smoked last night, much less what happened in a foreign country twenty years ago...

 

I would venture to guess that the same thing will happen in Shanghai, and maybe other Chinese markets.

[Yuanyang]

Let's remember that this is the Chinese Communist Party and they are there to protect the masses. The intent is admirable which is to drive out speculators (think of our gasoline prices last year) and keep housing affordable for the common family. So I give them 2 points for trying... but it ain't gonna work unless the CCP builds units for low income families. (Hey we've done that too).

[knloregon]

"...unless the CCP builds units for low income families..."

 

...and of course, thats exactly where the CCP checked in---- in the 1950's some are still around, drab gray walled monoliths, five and six story walk-ups--- lined up one after the other for what seems miles---my first experience with those was late last century, on the road from Beijing to the Great Wall. I wouldn't be at all surprised if they were one of the early targets for the clean up of Beijing before the 2008 Olympics..

[Randy W]

"...unless the CCP builds units for low income families..."

 

...and of course, thats exactly where the CCP checked in---- in the 1950's some are still around, drab gray walled monoliths, five and six story walk-ups--- lined up one after the other for what seems miles---my first experience with those was late last century, on the road from Beijing to the Great Wall. I wouldn't be at all surprised if they were one of the early targets for the clean up of Beijing before the 2008 Olympics..

 

 

Sounds like Florida

[Yuanyang]

"...unless the CCP builds units for low income families..."

 

...and of course, thats exactly where the CCP checked in---- in the 1950's some are still around, drab gray walled monoliths, five and six story walk-ups--- lined up one after the other for what seems miles---my first experience with those was late last century, on the road from Beijing to the Great Wall. I wouldn't be at all surprised if they were one of the early targets for the clean up of Beijing before the 2008 Olympics..

Yeah, I saw the same ones in the Soviet Union when I was there in the early '70s and the ones in Chicago when I went through there in the '80s. Really monuments of art ain't they? I think all governments use the same models.