Discussion » Nonsense » Housing, my perspective

  • Jimi
    Jimi wrote:

    10 years ago i noticed the increase and said I would never buy a damn thing here.


    who the hell wants to work their life off for a box made of prefabricated shit that is worth about 25-35% of its real cost.


    i hope the bubble breaks soon so i can laugh out loud.


    and if i doesn't well i still will be laughing cuz i can buy 2 house with yards and swimming pools back home for the same price.




    when i die. it will remain in my family.



    dont buy any house in beijing


    protest their developers. you guys are making them very rich and putting yourself in the poor/slave house.


    but i know you don't see it this way.



  • Joakim Lund Rangel

    just curious...why is it better with a house "back home" than it is to have a house in Beijing?

  • 哎呀
    哎呀 wrote:

    I don't think there is a big bubble in China's real estate industry at present. (just my personal judgment)

    So based on my judgment and optimism towards China's economy, I would like to buy as many apartments as I could afford in Beijing, Shanghai and other big cities. (But unfortunately, this is just a daydream)


  • Simen Wangberg

    Housing bubble...yeah. Kinda like the one we had in the States for awhile there. That worked out real nice for everyone now, didn't it?

  • Joakim Lund Rangel

    1. The pressure on the prices is to high, but this problem we see in many big cities around the world, and in Beijing particulary problem is that too many speculants is buying a bunch of houses. The bubble will probably burst at some point, but then we usually see it climbs up again to a higher level next time before yet another bubble explodes. right?

    2. I have no idea what material they use.

    3. I don`t really know how the rules for ownership of property is in Beijing. The way I have understood it, after 40 years you get a new property with the value of x1.5 of what you have now.

    4. Do you even care if the workers have a low salary? If their salary was higher, and maybe in the future they are, then perhaps the todays housing prices is not too high for the future market.

    Please continue :)

  • Minger
    Minger wrote:

    A very small percentage of the people buying real estate in Beijing are doing it because they think what they buy is a good value for the money and they want to own the house and live there.

    The vast majority of people are buying them because they think that the price will increase even more, and that they'll be able to sell them for an inflated price a few years in the future when they finally get their 房产证 (property ownership certificate).

    That's what's called a speculation bubble. Some of the investors are really wealthy and can throw away money on several extra apartments or houses. Some of them are using the life savings of their parents and their in-laws combined with a 30 year mortgage that takes most of their salaries in order to buy these places. I have never met anyone outside the former category who actually wants to own a flat in Beijing at the rate they pay.

    The bubble will definitely burst, and the people who are stuck with real-estate at the end of this game of musical chairs will be in a very desperate situation. If only I knew when it would burst, then I would be a wealthy man.

  • 叮噹叔叔 (令狐叮噹)


    There was a burst in Hong Kong a while back, and then people suddenly realised that they have "negative assets", i.e. the home loan is more than the worth of their home, however, that bounced back very soon ...

    I have "faith" that the property market in China and Beijing will burst, but like Ming had said, no one knows when ... though I dont think it will be as uncontrollable as in the cases of HK and US ...

    What worries me is that when it bursts, people with too many zeros in their bank account will come to sweep the market, making it still very unaffordable, and come to think of it, the market is cooling down right now, but the price had not dropped a lot, and maybe that's what happens?


  • Joakim Berg Solum

    I think perhaps you can judge the value of a home by how much a comparable home costs to rent. It seems to me that rent prices are not growing at quite the same rate as property values. This is a pretty good indicator that we have a bubble going on since the people who actually live in the homes certainly cannot afford to pay for anywhere near what the mortgage monthly payment would cost. Hence, speculation.

    But DD has a point too. When the bubble bursts, why do prices have to fall? The wealthier people still control all the real estate and will just sit on it, using them as low income investments hoping that someday another bubble starts to form. There will just be fewer people buying in the meanwhile.

  • 叮噹叔叔 (令狐叮噹)


    Jon ... that's because:

    ... most investors are interested in profit from sale, not from rental income, unlike the western counterparts, but per the cooling of sale right now, they are shifting focus to rental income, hence rent is moving up now ...

    ... and being that this is China, the rent will perhaps shoot to a level that's insanely high and then god knows what will happen then ...



  • Daniel Westerberg

    How dare you claim that Chinese construction workers dosn't know what they are doing?!?!



  • 叮噹叔叔 (令狐叮噹)

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