Real Estate in China

Can China fix its runaway housing market?

‘Houses should be for living in, not for speculation,’ President Xi said one year ago. But he finds status quo is hard to change.

China’s private property sector exploded, made possible by the market reforms and opening up policies that began in the late 1970s, and the countless millions of people who started moving from the countryside to cities.

Tight capital controls and painful memories of the 2015 stock market crash reinforced people’s belief that property is the best nest egg.

a bias toward male children during the one-child era has left a skewed sex ratio, parents and grandparents often pile their savings into a home to boost a male child’s marriageability chances.

In addition, school options are closely tied to home ownership, leading parents to buy “school district homes” – xue qu fang – whose purpose is not to live in, but to get a child into a top school.

That doesn’t sound like a problem at all; it sounds like a great investment opportunity.

If you want to stop any speculation from taking place with houses then the government needs to own them all and just assign them to people, that would stop it.

Govt needs to warn people about the danger of speculation but should not prevent people from doing so. It should also bail people out if things turned south… :rofl:

Rental yield in many Chinese cities are super ultra low. We are talking about even lower than SF. Mortgages can be tricky too. I’d much rather buy in Hong Kong.

You complain about low cash flow and yet you want to buy in the most expensive market of the entire country. Does that make any sense at all?

Rent yield in HK is higher than mainland. Do you plan to rent your Chengdu condo out? What’s the rent yield you are seeing?

I haven’t figured that out yet… I’ll keep you posted :rofl:

But my thinking is that Chengdu cash flow will beat HK hands down. Maybe a 10x difference.

Are you smoking weed again? :thinking:

I think I was! HK cash flow is totally negative, so the difference is not just 10x, but infinity… :rofl:

There’s a reason why Li Ka Shing converted his RE investments in mainland China to non-RE investments overseas. Dude is not dumb.

That’s like saying Einstein is not dumb. Duh.

Our own @dioworld is watching the HK market too I think? It has gone down about 10% from the peak last year.

If you ask me I think Li Ka Shing is smarter than WB, even though his net worth is less.

I don’t think HK market has gone down all that much. The headlines screaming lower sales prices seem to be for the ultra low floors.

The centerline index has gone down, and the new flats are cutting price. It’s around 10%.

Li will be worth than WB after WB gives all his money to BG’s foundation. :smile:

As they should be. Most of them are in the boonies.

May be he is.

Some neighborhood down over 20% already, but not in main areas. still holding pretty well

Are you smoking weed with @wuqijun again? :thinking:

Don’t know Einstein personally, and didn’t read his bio, so not going with popular beliefs, most of the time is post-mortem glorification.

You are the biggest weed smoker here with your delusional Tesla projections.