The crazy increasing rate of Chinese house prices
For most Chinese, real estates, like houses and apartments, are the most important part in their assets.
Recently, an recovery about the fanatic customers who made a panic buying in Shanghai’s Real Estate Market attracted my attention. It’s said that these expensive apartments were sold out in a few hours after the new year opening. And most buyers immediately listed these estates for sale at a price which is commonly about 10% to 30% higher than the original one. The similar cases also happened in Beijing, Shenzhen and other metropolis in China.
It’s obvious that these customers didn’t purchase apartments for living but investment. And this is not secret for Chinese that investing real estate has became a low-risk and high-return investment since the year of 2009.
The superficial reason of the skyrocketed price is the growing population in Shanghai, Beijing and Shenzhen. I though the newly formed families’ demands should be the straight incentive of this. But actually most young people can’t afford their first apartment or house if their parents won’t support them with money. In Chinese traditional thinking, the husband or husband’s family of the married couples should pay for their home property. I’ve heard many stories telling about dispute over home property ownership and some other troubles like this. That’s to say, the conduct of investment indeed caused a lot of problem to young men.
Candidly speaking, I’m really envious of these people who own their apartments and these who have enough money putting into the real estate market. I’m learning the Subprime Mortgage Crisis of America. Will this be another housing bubble?