Shanghai Property Market
March 18th, 2005While prices on the Shanghai stock exchange have been falling for some time, prices for Shanghai real estate have been escalating sharply, leading central government authorities to try to cool the market.
Mark O’Neill does a good job describing the situation here for the South China Morning Post.
I don’t know how much a square meter of apartment space in Shanghai should cost, but I do know that when the central government orders banks to reign in lending, obtain bigger down payments and raise interest rates, central economic planning is still important in China.
April 3rd, 2005 at 9:12 pm
It is average USD 1K/square meters in Shanghai. The price has almost tripled during last few years, but the average ppl’s salary only increased a little. Central Gov’t definitely has a grasp on the housing bubble, unfortunately Gov’t is also a big beneficiary ( not the tax revenues). Recent measurements and policies only have limited influence on housing speculatons, because many so called “investors” don’t think the interest rate increases, down payment increases and tax increases on house transactions would have significant impacts on the housing market. In addition, a collapse of Shanghai’s housing market will adversely impact the Chinese/Shanghai’s economy. Bubble is there, and time will tell how effective Chinese gov’t is dealing with current housing bubble.