There’s been quite a bit of news lately about the Chinese real estate market now that government restrictions on buying property and getting financing for these purchases seems to be having more than a fleeting impact.
The lastest un-China-like report on prices comes from this story in Bloomberg.
Shanghai Average New Luxury Home Prices Fall 13%Another Bloomberg report details the effect on local governments where the land sale boom of recent years appears to have no obvious replacement as a source of government funding. Israel’s Financial Expert provided details of what he thinks is behind the boom, replete with videos of angry citizens and a run on one of the banks.
Shanghai’s average new luxury home prices dropped 13 percent in July from April following expanded government restrictions on the property market, the Shanghai Securities News reported today, citing China Real Estate Information Corp.
The average price fell to 62,439 yuan ($9,212) per square meter in July from April, according to the newspaper.
In Shenzhen, average luxury home prices declined 6.3 percent to 40,370 yuan per square meter in June from April, the newspaper reported, citing the housing market consultant.
Steven Roach’s recent protestation that China does not have a housing bubble is looking a little shakier with each passing day and each new revelation about what’s been going on.
This article has been republished from Tim Iacono's blog, The Mess That Greenspan Made.