65 million flats in China are vacant

[TradeMetal]

Quote from coolweb:

You are the same guy topticking YHOO @ $600, "Its the new economy!" , but you are a necessity in markets.


The reality is , the markets need retards like you to offload their crap assets , like property in shanghai or beijing.

Can he please get into Forex, I need guys like him.

 

[heech]

Quote from coolweb:

1. Property tax implemented now on #2nd homes in china.

2. Home asset values drop 3% per year regardless of what might happens in 70 years.

1989 built apartment in the same block = 9k RMB per sqm
2010 built apartment in the same block = 16k RMB per sqm

"Wikipedia"? I lived in China during both the 80s and recently, and remember the real estate market from both. (If you can even call the 1980s a "real estate market"... there were minimal so-called "commercial" residential properties in urban areas; that period was only the start of danwei-subsidized housing construction. It wasn't until 1994 that my extended family were amongst the first in our city to have our old 1930s home torn down and replaced with a 4-story walk-up apartment.)

First of all, good luck finding the same block in China that has apartments built in both 1989 and 2010. Second of all, good luck finding the same buildings that have remotely the same construction.

Since you are obviously based in Hong Kong, let's just talk about the Shenzhen market. (By the way, I own an ocean-view 465 sqm apartment on the 33rd floor in Futian.) I bought it at 9000 RMB/sqm back in 2005, and market value is currently around 15000-25000 RMB/sqm.

Are you claiming that in Shenzhen, the buildings built in 2010 are automatically 20%-30% more expensive than well-maintained buildings with *identical* amenities built in 2000? Do you want to start talking about specific property names?

 

[newguy05]

heech, why do you waste your time. The guy is just some redneck that never left his state his whole life, talking out of a google search engine. Dont bother, not worth it.

 

[coolweb]

Quote from heech:



Since you are obviously based in Hong Kong, let's just talk about the Shenzhen market. (By the way, I own an ocean-view 465 sqm apartment on the 33rd floor in Futian.) I bought it at 9000 RMB/sqm back in 2005, and market value is currently around 15000-25000 RMB/sqm.

Are you claiming that in Shenzhen, the buildings built in 2010 are automatically 20%-30% more expensive than well-maintained buildings with *identical* amenities built in 2000? Do you want to start talking about specific property names?

a) 2005 property bought for 9k rmb, now 15k rmb,

As I mentioned, during market uptrends, everything goes up and you do not see the -3% depreciation per year when the property prices are jumping 25% per year annual. Now, market price has "stablized" and is downtrending, you will see the -3% annual depreciation VERY clearly.


b) If I were you , I'd be selling that futian apartment, that and nanshan (suburbia) .
The property prices in suburbia is going down at least 50-60% over the next few years.

- Speculation taxes on #2nd property instituted 2 months ago.
- Sales volume dropped 40-50% immediately after that law came into place.
-There is no support or ability to support from the local residents for these prices.
- Prices can not be supported by thin air or people from HK , factory owners in dongguan , or expats in shekou.


c) The only areas I can see areas dropping LESS (40-50% ) are the properties in 5 block vicinities of every single metro stop, from louhu to SZ University.