360° Coverage : Deja Vu As China Enters 2014 With Higher Home Prices

2 Updates
Deja Vu As China Enters 2014 With Higher Home Prices

Deja Vu As China Enters 2014 With Higher Home Prices

Jan 19 2014, 3:06am CST | by

The Chinese will face another year of rising home prices. According to the National Bureau of Statistics, 65 out of 70 cities surveyed saw home prices ending the year higher than they were a month...

Filed under: news

 
 
 

32 weeks ago

Deja Vu As China Enters 2014 With Higher Home Prices

Jan 19 2014, 3:06am CST | by

The Chinese will face another year of rising home prices.

According to the National Bureau of Statistics, 65 out of 70 cities surveyed saw home prices ending the year higher than they were a month prior.  January is unlikely to be an exception, as China  housing remains on performance enhancing drugs.

November data showed prices relatively stable, but up a tad in Shanghai, Guangzhou, Beijing and Shenzhen, China’s busiest cities. Prices are up less than half a percent, however, in the month long period.

High home prices are mostly the cause of higher incomes and lackluster financial options for wealthy Chinese, who prefer to use housing as a store of wealth. But that kind of investor demand has driven up prices in cities that actually lack housing, especially the affordable kind, putting pressure on China’s middle and lower income earners which constitute the bulk of the nation’s population.

Home prices in China have climbed to a level that some say could trigger a financial crisis, though that call has been made for the past five years.  In the meantime, municipal level banks, which also fund developers of real estate projects, have been given warnings by the Central Bank about its non-performing loans (NPLs).  Although the NPLs for municipal banks is not entirely transparent, nor is it clear that the bulk of the NPLs is due to bad real estate deals, the overall NPL number within China’s banking system is within international norms, according to the World Bank.

Still, home prices in Beijing and Shanghai have more than doubled in the past 10 years. Policymakers have tried to curb speculation and added numerous road blocks to housing, including punitive taxation and higher down payment requirements. Nothing has tamed the market.

A big price correction in the Chinese real estate market is unlikely, as this is still a country controlled from Beijing. And Beijing doesn’t want a real estate bubble to burst.

Xin Zhiming, Big Picture columnist at China Daily, wrote recently that, “As people’s hopes to buy an affordable home are dampened by rising prices, they may become less confident in policymakers, which, in the longer term, will prove a problem even bigger than real estate price corrections.”

According to the National Bureau of Statistics report, released on Saturday, all 70 cities except for Wenzhou reported gains in new home prices. First-tier cities continued to record month-over-month price hikes, new home prices in Beijing and Shanghai up over 20% from December 2012 levels.

The Hottest Real Estate Markets On Earth

Source: Forbes Business

 
Update
2

2 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing th ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday.
 
 
Japan to aid connectivity upgrade in northeast India
Tokyo, Sep 1 (IANS) India and Japan Monday decided to strengthen cooperation for improving connectivity and socio-economic development in northeastern states of India.
 
 
Three Ebola cases recorded in Nigeria oil hub
Abuja, Sep 1 (IANS) At least three cases of Ebola virus disease (EVD) have been recorded in Nigeria's oil hub of Port Harcourt, where a fatality was confirmed last week, the country's Minister of Health Onyebuchi Chukwu said here Monday.
 
 
India, Japan to elevate strategic partnership
Tokyo, Sep 1 (IANS) Prime Minister Narendra Modi Monday said relations with Japan were of the "highest priority" for his government and announced a slew of initiatives, including turning the strategic partnership into a "special" partnership and a fast-track channel for Japanese investors.
 
 
 

Latest from the Network

Three executed in Yemen for having US links
Aden, Sep 2 (IANS) Three people have been executed by militants in Yemen Monday for having links with the United States, a military source said. "Suspected Yemen-based Al Qaida operatives kidnapped three local...
Read more on Politics Balla
 
Lena Dunham condemns naked photo leak
Los Angeles, Sep 2 (IANS) Actress-writer Lena Dunham has condemned a mystery hacker who leaked nude photographs of celebrities, including actress Jennifer Lawrence. Lawrence hit headlines Sunday when intimate snaps of...
Read more on Celebrity Balla
 
Three children, teacher killed in China school stabbing
Beijing, Sep 2 (IANS) A stabbing spree in a Chinese school has left three children and a teacher dead Monday. Chen Yanfu, 43, who was upset that his daughter was not allowed to register at the school, rampaged through...
Read more on Politics Balla
 
Jennifer Aniston eases exercise regime
Los Angeles, Sep 2 (IANS) Actress Jennifer Aniston, who admits she's "eased up" her workout regime, says it's important to take time off from working hard in the gym to simply enjoy life sometimes. The 45-year-old,...
Read more on Celebrity Balla
 
Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday. The drug named Favipiravir and developed by a subsidiary of Fujifilm Holdings in...
Read more on Business Balla
 
Miley Cyrus: The internet is more damaging than drugs
Miley Cyrus thinks the internet ''hurts your brain'' more than drugs. The 21-year-old singer believes social media - such as Facebook and Instagram - causes more damage to your mental health than smoking cannabis. She...
Read more on Celebrity Balla
 
Britney Spears in contact with ex-boyfriend from 6 years ago
Britney Spears is reportedly in contact with her ex-boyfriend from six years ago. The 'Piece of Me' hitmaker only split from her beau David Lucado last week after it emerged he'd allegedly cheated on her and now the...
Read more on Celebrity Balla
 
Joan Rivers may end up 'as a vegetable' or in 'wheelchair'
Joan Rivers' doctors fear she may end up ''as a vegetable'' or ''needing a wheelchair'' after she suffered a cardiac arrest last week. The 81-year-old comedienne's relatives are reportedly preparing themselves for the...
Read more on Celebrity Balla
 
Kate Upton will 'pursue anyone' who shares naked photos of her
Kate Upton's lawyer will ''pursue anyone'' who shares naked pictures of her. Nude photographs of the 22-year-old model were reportedly leaked online after her mobile phone's online storage system iCloud was allegedly...
Read more on Celebrity Balla
 
'Ukrainian conflict has escalated into war'
Kiev, Sep 1 (IANS) Ukrainian Defence Minister Valeriy Geletey Monday said the conflict in eastern Ukraine between government troops and pro-independence insurgents has escalated into a "war". "A great war came at our...
Read more on Politics Balla