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New-home prices rose in 49 out of 70 Chinese cities in July, the largest number since May last...

  • Monday, August 20, 2012, 5:02 AM ET
    New-home prices rose in 49 out of 70 Chinese cities in July, the largest number since May last year and well above the 25 cities in June. The increases follow two rate cuts and the introduction of incentives for first-time buyers, complicating the government's attempts to boost the slowing economy while curbing property speculation.
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This news story has 3 comments:

  •  
    An addiction to real estate and infrastructure bubbles is very difficult to cure whether it is in China or Spain or the US.
    The illusion of prosperity generated by bad debt and fake money does not dispel easily but when it inevitably does, the consequences for ordinary middle class people are always catastrophic.
    20 Aug 2012, 05:24 AM Reply Like
  •  
    Andy Xie predicted that this rise will not be sustainable, if you are interested, you can hunt down his Caixin article. His preference is to actually cut taxes which I think makes more sense.
    20 Aug 2012, 05:45 AM Reply Like
  •  
    Interest rate cuts do give people a false sense of what they can afford. When this applies to a purchase of a property it must always be done with extreme caution. Steady employment, stable income and sufficient assets are required in order to receive lender approval in China but as we all know, circumstances can and do change.
    20 Aug 2012, 07:00 AM Reply Like
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