Posts Tagged ‘property market’

Beijing Real Estate Association Admits There’s A ‘Big Bubble’…

Beijing Real Estate Association Admits There’s A ‘Big Bubble’, Supports New Measure To Ban Home Buying

beijing, clusterstock photo Courtesy of Vincent Fernando at Clusterstock 

Beijing on Friday announced a ban on families buying more than one home, in addition to other measures aimed at cooling the city’s hot property market.

China Daily:

As of Friday, "one family can only buy one new apartment in the city for the time being," the municipal government said in a statement. The government also ordered the implementation of central government policies that ban mortgages for purchases of a third or third-plus home.

It also instigated a central government ban on mortgages to non-local residents who cannot provide more than one year of tax returns or proof of social security payments in Beijing. The statement called for "resolutely curbing unreasonable housing demand." It ordered the implementation of measures earlier unveiled by the State Council on second-home purchases.

One of these days, property market tightening measures are going to hit the market hard. It’s fat chance that these regulatory efforts can perfectly balance out the market so that prices simply stop rising and all is calm.

The latest measures, more harsh than those released by the State Council, are aimed clearly at curbing speculation and promoting healthy and stable development of the property sector, Chen Zhi, deputy secretary-general of Beijing Real Estate Association, told Xinhua.

Speculation is the main reason behind high home prices in Beijing, Chen said.

"There exists a rather big bubble in the city’s real estate market. Housing has become more unaffordable for many," he added.

So even the Beijing real estate association is worrying about a bubble. At least give them some credit here. Did America’s National Association of Realtors (NAR) ever caution that the U.S. housing market has a ‘big bubble’? If they did, we don’t recall it.

****

See also:  Beijing city limits home-buyers to one new apartment: Media

In The Economic Times

BEIJING: The city of Beijing has issued rules limiting families to one new apartment purchase as authorities try to rein in rampant property speculation and soaring prices, state media reported Friday.  More here.>>


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New home loans up 1,600pc in Shanghai

No bubble here.  You may need to register with scmp.com to read the entire articles. – Ilene

(Thank you, Terry)

New home loans up 1,600pc in Shanghai

Busy Shanghai street

Mainland banks in Shanghai’s red-hot housing market lent 99.58 billion yuan (HK$113.2 billion) in new mortgages last year, up dramatically from 5.8 billion yuan in 2008, as home seekers rushed to buy and prices hit new highs.

The banks lent 38.93 billion yuan to buyers of new residential properties and 60.65 billion yuan to buyers of second-hand homes, the Shanghai office of the People’s Bank of China said yesterday.

Lending soared more than 1,600 per cent compared with 2008, when the property market and overall economy were hit hard by the global financial crisis, the central bank said.

Full article here.>>

Beofre you start worrying, know this. (Classic Chinese oxymoronic title.)

No sign of bubble despite soaring home prices in Shanghai

Shanghai’s residential market shows no signs of a bubble despite a hefty price increase because demand remains strong, according to Jones Lang LaSalle.

Price increases "do not mean that the market has reached extreme valuations that typify a bubble", the real estate service firm said in a report yesterday. "Overall, the policy environment will evolve to keep prices from growing too quickly."..

Soaring home prices on the mainland have sparked asset bubble worries among the country’s top leaders, including Premier Wen Jiabao who promised to take action.

According to Shanghai Uwin Real Estate Information Services, average housing prices in the city jumped 65.3 per cent last month from a year earlier, hitting a record 20,187 yuan (HK$22,930) per square metre.

Shanghai Securities News reported earlier this month that the mainland would probably start imposing property tax in selective cities this year, a heavy-handed move to cool the red-hot housing market…

More here.>>

And rest assured, the non-bubble is going to be curbed.

Mainland to curb lending binge, says chief regulator

Mainland will slow its massive lending spree and step up monitoring of banks as it tries to prevent speculative bubbles in real estate and other assets while keeping the country’s economic recovery on track, a top regulator said on Wednesday.

Mainland’s banking system is healthy despite last year’s explosive growth in credit and regulators could manage the risks, said Liu Mingkang, chairman of the Chinese Banking Regulatory Commission…

After handing out some


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Phil's Favorites

How high will unemployment go? During the Great Depression, 1 in 4 Americans were out of work

 

How high will unemployment go? During the Great Depression, 1 in 4 Americans were out of work

Unemployed people wait outside a government office in NYC in 1933. AP Photo

By Jay L. Zagorsky, Boston University

CC BY-ND

The U.S. unemployment rate climbed from a half-century low of 3.5% to 4.4% in March – and is expected to go a lot higher.

But could the rate, as ...



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Zero Hedge

Mysterious Colorado Doomsday Shelter For When "Law & Order Breaks Down" Sees Spike In Interest

Courtesy of ZeroHedge View original post here.

As the pandemic unfolds across the US, city dwellers are getting the hell out of dodge and escaping to rural areas. We noted this last week, with many leaving large metro areas in California, fleeing for the mountains and rural communities to limit their probabilities of ...



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Biotech/COVID-19

Why wear face masks in public? Here's what the research shows

 

Why wear face masks in public? Here's what the research shows

People have resorted to using scarves and bandanas as face masks to protect against spreading coronavirus. While cloth masks aren’t as effective as surgical masks, research suggests they can limit the spread of droplets. Jens Schleuter/Getty Images

Hector Chapa, Texas A&M University

With the coronavirus pandemic quickly spreading, U.S. health officials have changed their advice on face masks and now recommend people wear cloth masks in public areas where social...



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ValueWalk

Junior gold stocks offer a place of refuge in a falling market

By Michelle Jones. Originally published at ValueWalk.

Junior gold stocks have taken a beating alongside other stocks, but history suggests this could be the time to dive in. The Vaneck Vectors Junior Gold Miners ETF is down from where it was in February, although it’s starting to show signs that it could revive soon.

Q4 2019 hedge fund letters, conferences and more

Crescat likes junior gold stocks

In their March update to investors, Crescat Capital said junior gold stocks retested the lows of a nine-year bear market. ...



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Kimble Charting Solutions

Depression Coming or Is the Bottom Already In? Joe Friday Says Your Answer Lies Here!

Courtesy of Chris Kimble

Are we headed towards a Depression or is the worst already behind us? In today’s world, comparisons to the great depression are easy to find.

Are the Depression concerns well founded or are the declines of late already pricing in a bottom?

In my humble opinion, this chart and the upcoming price action of this index will go miles and miles towards telling us if we are headed towards very tough times or if the huge declines of late are actually in a bottoming process.

This chart looks at the Thomson Reuters Equal Weighted Commodity Index on a monthly basis over the past 54 years. The index has been heading south, reflecting weakness in demand for basi...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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The Technical Traders

Founder of TradersWorld Magazine Issued Special Report for Free

Courtesy of Technical Traders

Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

There is only one article in this special supplement, click on the image or link below to download and read it today!

...

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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

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Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

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Funny but probably true:

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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