China - Housing 01 (May 08 - May 10)

[kennynah]

all that i am concerned with, will be the frequency and vigor of such real estate reports.... the more they become a household topic, the sooner the top will be ....

greed will strangle hold a nation that has never seen such wealth creation in real estate before..and from history...it happens to almost every nation...and the catastrophic decline follows almost always....

ladies and gentlemen, boys and girls, brace yourself for a hard crash landing.... it is not a "if" situation but "when"

[LenaHuat]

1Q2010 property price increases:-
(1) Beijing - 128%
(2) Shanghai - 150%

http://house.ifeng.com/special/loushipaomo/allnews/detail_2010_04/07/512253_0.shtml

[kennynah]

still not burst yet? ok...life goes on as usual...hahaha...

[winston]

Chinese Banks raised 2nd home down payment from 40% to 60%.

[winston]

China Real Estate Is Overheated, Nomura Asset Says (Update2)

April 12 (Bloomberg) -- China’s real-estate market is overheating and investors should stay cautious on developers after the shares fell the most in the main equities index this year, according to Nomura Asset Management Hong Kong Ltd.

“In the first-tier cities, property markets are obviously overheating,” Shen Xiaomin, portfolio manager at Nomura Asset, said in a Bloomberg Television in Hong Kong today. “There is too much money in the economy.”

Property prices in China rose at the fastest pace in almost two years in February, spurring warnings of asset bubbles. Hedge fund manager James Chanos said last week that China is “on a treadmill to hell” and that the land market is a bubble that may burst as early as this year. The SE Shang Property Index slumped 2.8 percent today, the most since Feb. 5.

The property stock gauge has declined 10 percent this year, the worst-performer among the five industry groups on the Shanghai Composite Index, after officials re-imposed a tax on homes sold within five years of their purchase to curb speculation and directed banks to set aside more funds as reserves to cool lending.

Kenny Tang, a Hong Kong-based analyst at Redford Assets Management Ltd., said the real-estate industry is a key part of the economy and predicted tightening measures by the government won’t be “too strong.”

“The government won’t kill the property market,” he told Bloomberg Television.

China housing prices will increase 11.4 percent in March, according to a Bloomberg survey. The monthly data is due to be released this week.

Shanghai and Beijing are among the cities that are affected by so-called “hot money” and speculation, Liu Mingkang, chairman of the China Banking Regulatory Commission, said yesterday. Hot money generally refers to speculative funds flowing into a country to take advantage of higher returns.

The regulator told lenders to reassess their risk exposures and submit reports by the end of June. This follows an order in March to banks not to lend to developers holding land without building houses in a March 26 statement.

“Overall we still need to be very cautious on the property sector,” Nomura’s Shen said.

http://www.bloomberg.com/apps/news?pid= ... _R9tCprSnQ

[winston]

Not vested.

DJ MARKET TALK:China Developers Weak; Ppty Tax Major Overhang-UOB

1515 [Dow Jones] Mainland developers can't hold on to early rebound; China Overseas Land (0688.HK) now down 0.5% at HK$16.58 vs day's high of HK$17.00, Shimao Property (0813.HK) down 3.0% at HK$13.56 as strong FY09 results (out lunch time) largely non-event, R&F Properties (2777.HK) slides 2.5% to HK$13.18.

Sector facing strong policy headwinds, as property bubble keeps brewing in China, triggering tough talk from government officials. UOB KayHian thinks rumored property tax "a major overhang;" if materializes, expects investment, speculation demand to be squeezed as investors would find it difficult to pass on property tax to home buyers.

Also, housing affordability would decline due to higher burden from annual property tax payment, which house estimates could be equivalent to 20% of current mortgage payment.


Source: Dow Jones Newswire

[millionairemind]

April 14, 2010, 10.31 am (Singapore time)

China property price inflation rises to 11.7%

BEIJING - Chinese property prices in 70 cities rose 11.7 per cent in March from a year earlier, up from 10.7 per cent in the year to February, the National Bureau of Statistics said on Wednesday.

It was the tenth consecutive year-on-year rise after seven months of declines, adding to worries that a bubble in property market is forming. Many analysts say the way the index is compiled seriously understates the degree of property inflation.

Investment in real estate in the first three months increased 35.1 per cent compared with the same period last year.

Year-to-date investment in the first two months of 2010 was up 31.1 per cent.

Beijing has repeatedly pledged to curb excessively fast real estate price rises in some cities by increasing the supply of affordable houses while clamping down on speculative purchases. -- REUTERS

[winston]

Property picks poised for pain

Monday, April 19, 2010

The State Council's call to banks to stop lending for third-home purchases will further dampen market sentiment in mainland property and the stock markets, analysts are warning.

Property experts said real estate transactions have dropped as much as 30 percent since the Cabinet's move on Thursday to tighten both downpayment and mortgage rate policies.

The action on third-home lending was revealed on Saturday.

Delta Asia Financial's head of equity markets, Conita Hung Lai-ping, said Hong Kong-listed mainland property stocks may have another 10 percent downside as the new measures will have an impact on developers' cash flows.

"I take a gloomy view and believe property shares will underperform the whole market this year," she said.

Locally, the Hang Seng Index may test 21,500 points today, with a potential support level at 21,300 points, Hung said. The benchmark fell 1.32 percent on Friday to close at 21,865 points.

Beijing is trying to rein in soaring home prices. On Thursday, downpayments for a second home were hiked to 50 percent from 40 percent and the mortgage rate to at least 1.1 times the benchmark interest rate rather than 80 percent.

Two days later, the State Council warned banks to be cautious when extending mortgage loans to non-locally registered third-home buyers, especially in cities where prices are very high.

Property transactions in eastern China dropped 20 percent to 30 percent immediately after Thursday's announcement, said Clement Luk Shing, deputy managing director of Centaline (China) Property Consultants.

He added that home transactions declined more in Beijing and Shenzhen - where turnover and home prices rose in March and the first two weeks of April.

Source: BETH YE, The Standard HK


http://www.thestandard.com.hk/news_deta ... 00419&fc=1

[kennynah]

Chinese state media reportedly said - Chinese property market correction a necessity

[millionairemind]

Chinese state media reportedly said - Chinese property market correction a necessity

If it is a necessity.. those who bot in March will be crying now....