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Crash? Can't Beat China: Shanghai Property Down 10%

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http://business.guardian.co.uk/story/0,,1855956,00.html

Fruit of the boom threatens to push China's economy out of control

A glut of villas, shopping malls, steel mills and car plants is raising fears of a crash

Jonathan Watts in Beijing

Wednesday August 23, 2006

The Guardian

Few views of China's spectacular economic growth could be more impressive than the one offered by the property company Tomson Riviera in Shanghai. From the top floor of its sleek, luxury apartment blocks in the Pudong development zone, you can, say the brochures, look out across the Huangpu river at one of the world's most futuristic skylines.

The panorama does not come cheap. At 180m yuan (£14m) for a penthouse, this is the most exclusive residential complex on the mainland. Unfortunately for the developers, it is also the emptiest..../

Even so, analysts say, the price is unlikely to rise for several years. They blame it on an optimistic initial valuation of £8,200 a sq metre. Others blame a housing market swamped with s*****y apartment blocks and luxury villas. In a single week last month, residential prices in Shanghai fell 10%......./

According to the commerce ministry, domestic supply exceeds demand for about 70% of consumer goods. The gap is evident at many of the new shopping centres. In Beijing's Golden Resources Mall, whose owners claimed it was the biggest in the world when it was opened in 2004, sales staff far outnumber the customers. Half of the restaurants have closed, so has the spa and beauty salon. Several chain stores have moved out.

IMF were right--HPC will reverberate around the world once it gets its foothold. OZ-US already crashing. We are next!

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http://business.guardian.co.uk/story/0,,1855956,00.html

Fruit of the boom threatens to push China's economy out of control

A glut of villas, shopping malls, steel mills and car plants is raising fears of a crash

Jonathan Watts in Beijing

Wednesday August 23, 2006

The Guardian

Few views of China's spectacular economic growth could be more impressive than the one offered by the property company Tomson Riviera in Shanghai. From the top floor of its sleek, luxury apartment blocks in the Pudong development zone, you can, say the brochures, look out across the Huangpu river at one of the world's most futuristic skylines.

The panorama does not come cheap. At 180m yuan (£14m) for a penthouse, this is the most exclusive residential complex on the mainland. Unfortunately for the developers, it is also the emptiest..../

Even so, analysts say, the price is unlikely to rise for several years. They blame it on an optimistic initial valuation of £8,200 a sq metre. Others blame a housing market swamped with s*****y apartment blocks and luxury villas. In a single week last month, residential prices in Shanghai fell 10%......./

According to the commerce ministry, domestic supply exceeds demand for about 70% of consumer goods. The gap is evident at many of the new shopping centres. In Beijing's Golden Resources Mall, whose owners claimed it was the biggest in the world when it was opened in 2004, sales staff far outnumber the customers. Half of the restaurants have closed, so has the spa and beauty salon. Several chain stores have moved out.

IMF were right--HPC will reverberate around the world once it gets its foothold. OZ-US already crashing. We are next!

The Shanghai property market crashed quite a few months ago due to regulations the Chinese goverment imposed on foriegn property ownership. If I remember rightly this effect literally halved the demand and caused prices to crash but this is old news. It has nothing to do with a ***.

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The Shanghai property market crashed quite a few months ago due to regulations the Chinese goverment imposed on foriegn property ownership. If I remember rightly this effect literally halved the demand and caused prices to crash but this is old news. It has nothing to do with a ***.

It depends whether China is part of the globe. It seems that speculation in China has led to an affordability crisis and consequential bubble. More exaggerated than elesehwre but all connected to the global bubble network as the IMF suggested. Its the same HPI disease caused by the same virus: accomodative IR and speculation.

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  • 337 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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