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http://www.chinadaily.com.cn/china/2011-08/11/content_13096289.htm

Developers endure mounting house inventories

Updated: 2011-08-11 18:52(Xinhua)

BEIJING - China's property developers saw their inventories surge in the first half of this year as government measures to cool the market have started to bite, latest statistics show.

Total inventories of 20 listed real estate developers that had released their semi-annual reports as of Wednesday soared 46.3 percent year-on-year to 317.76 billion yuan ($49.65 billion) in the first half of 2011, according to Wind Information, a Shanghai-based financial data provider.

China Vanke Co, the country's largest property developer by market value, had 171.37 billion yuan of unsold houses as of June 30, up 28.5 percent from three months earlier, the company's semi-annual report showed.

In the same period, another major developer China Merchants Property Development saw its inventory rise 15 percent to 44.47 billion yuan.

Pressure weighed more heavily on the other 18 smaller developers, whose inventories totaled 101.93 billion yuan at the end of June, up 42 percent year-on-year.

Growing inventories and tightening bank lending may press developers, especially small ones, to cut prices substantially in the second half of this year to stimulate sales, analysts said.

Zhang Yue, chief analyst with Homelink, said sales and capital conditions of real estate developers will worsen if China continues to tighten credit and restrict home purchases.

"Small- and medium-sized developers are less competitive and will be hit by the first shock wave," said Zhang.

Market shrinkage has prompted more mergers and acquisitions in the property sector, with 62 equity merger cases worth 17.54 billion yuan occurring in the January-July period, up 72.2 percent and 101.9 percent year-on-year respectively, according to the Beijing-based real estate agency Centaline Property.

Rocketing property prices have been a major government and customer concern in China as many ordinary citizens can't afford an apartment.

The Chinese government has restricted residents in major cities from buying second or third homes, required higher down payments for mortgages and instituted new property taxes in the cities of Chongqing and Shanghai to rein in the runaway prices.

In June, 26 cities out of a statistical pool of 70 major cities saw new home prices decline or remain unchanged from a month earlier, official data shows. Only 20 cities saw lower or unchanged prices in May.

Government measures to curb credit may speed up the decline of housing prices in the second half of the year, said Guo Yi, marketing director of Beijing-based Yahao Real Estate Selling and Consulting Solution Agency.

China's inflation rate accelerated to a 37-month high of 6.5 percent in July. The central bank has raised benchmark interest rates three times and banks' reserve requirement ratio six times this year in an attempt to halt price rises.

Fearing a downturn, institutional investors had reduced their holding of real estate shares to 82.98 billion yuan by the end of June, a near 80 percent drop from three months earlier, according to Wind Information.

But never mind. I hear the US is on top form and should pull us all through...

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Developers endure mounting house inventories

It's all in inventory values not number of houses for sale.

The inventory value could rise even if the number of houses for sale fell, if prices were still rising enough

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Does this mean cheap houses in china? :D

There's 64million unsold NEW empty apartments and all the empty NEW shopping malls and motorways to match! That's called claiming you have 8% growth when you don't. Public spending by any other name and it has backfired, quite apart from producing temporary inflation. THEY COULD START PRINTING THEIR OWN DOLLARS - velly good at copying tings

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Hope China crashes ASAP , will put more pressure on Gillard Government to scrap the toxic carbon tax.

Better for China to collapse if we don't have a carbon tax than if we do have one.

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Just one more waffffffer thin mint, monsieur?

- it is wafffffer thin.

:lol::lol::lol: Brilliant.

You may be interested in this. At last someone asks Faber interesting questions and gets more interesting and nuanced replies.

In particular his view on the probability of China coming unstuck and the impact on everything.

I'd personally echo pretty much everything he says (except healthcare which is largely cultural)

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{snip}

The western world will want to control China by controlling the oil supplies.... and then it will come to war....

No comment from the studio...

:ph34r:

Edit to add: the "t=" command in the URL is not working... watch from 3:30....

Edited by Bubble&Squeak

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:lol::lol::lol: Brilliant.

You may be interested in this. At last someone asks Faber interesting questions and gets more interesting and nuanced replies.

In particular his view on the probability of China coming unstuck and the impact on everything.

I'd personally echo pretty much everything he says (except healthcare which is largely cultural)

Thanks, this is an interesting one. Despite the sound bites I think he's really smart.

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So the plan is to rely on the Chinese/eastern consumer to replace the clapped out western consumer while that same Chinese consumer is saving his money because there is no social safety net? How is that going to work?

If they shut down the welfare system in the west tomorrow and told everyone they were on their own what impact would this have on consumer spending?

Calling the western populations 'irressponsible' misses the point- the very model of mass consumption driven growth that he belives will be relocated east depends on people not saving, on the 'insurance' based model of welfare provision.

It's hard to see how our banksters and manufacturers will persuade the eastern populations to follow us down the road to perdition if they insist on behaving sensibly by saving their money rather than spending it and taking on debt to buy stuff.

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So the plan is to rely on the Chinese/eastern consumer to replace the clapped out western consumer while that same Chinese consumer is saving his money because there is no social safety net? How is that going to work?

If they shut down the welfare system in the west tomorrow and told everyone they were on their own what impact would this have on consumer spending?

Calling the western populations 'irressponsible' misses the point- the very model of mass consumption driven growth that he belives will be relocated east depends on people not saving, on the 'insurance' based model of welfare provision.

It's hard to see how our banksters and manufacturers will persuade the eastern populations to follow us down the road to perdition if they insist on behaving sensibly by saving their money rather than spending it and taking on debt to buy stuff.

It's funny how the fascist shills like yourself keep posting about the detruction of western welfare state - after your elites have plundered the World thru their corrupted form of Globalist Capitalism

(largely run right at the top by secretive, 'veiled' faux Jews)

You can see why history constantly repeats thru the ages - when some faux jews get control of everything & screw up

(cos most are extremely clever in one way but seem hard-wired genetically to self destruction through uber arrogance)

Edited by erranta

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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