Zhengzhou China Real Estate
Wang Shi's Vanke company is a multibillion-dollar real estate empire that builds more homes than anyone else in China, but its ambitions are modest. Wang Shi, founder and chief executive of China's largest real estate company, has long dreamed of buying a house in Zhengzhou, a sprawling provincial capital of 10 million people, where he attended college. He is one of the few who can do it and is owned by people like him - people in China's rising middle class who now have enough money to invest. In the last ten years, the city of Zhenghou has had a taste of this Chinese dream.
Indeed, income inequality in China is growing quite rapidly (see Xu Jin, 2015), and the speculative component of China's real estate market must be considerable. Chinese local governments, real estate, and fixed-asset investment will suffer, as tax revenues decline, making them dependent on income from real-estate and land investments. GDP growth will face increasing downward pressure, as the bubble housing market would collapse, and a reduction in property sales would weigh heavily on economic growth in both fixed investment and private consumption.
In this report, we are trying to assess whether or not the current situation is healthy, and we must consider this as a special report. We do this by assessing whether there is a bubble in the housing market that is growing at the moment, and also the long-term effects of such a bubble.
We have chosen to take this into account by assessing whether there is a real estate bubble that is currently growing, and also the long-term effects of such a bubble.
Our analysis suggests that several Chinese cities are facing a real estate bubble that is contained in these figures. London, Stockholm and Hong Kong are all in the property bubble territory. Our results suggest that there was, is or is at least a low risk of a bubble in London and Stockholm.
China's housing market has an exceptionally high affordability index, indicating that housing costs are above average. We arrive at this ridiculously high figure by linking a simple "affordability index" to monthly household spending and disposable income in a Chinese city.
To answer the question of whether or not China has a real estate bubble, we need to define what a bubble actually is. Because China's rental market is very immature and house prices are very high, both prices and income levels need to be considered.
The following screenplay is from "China's Real Estate Bubble," which originally aired on March 3, 2013 and was rebroadcast on August 3, 2014. The Diaoyutai State Guesthouse, co-organized by the Chinese Academy of Social Sciences and the China Institute of Economic Research, is located in the Chinese capital Beijing.
After the meeting, it was officially stated that people in Central China and the rest of the world share a new kind of lifestyle in the form of real estate. At the same time, we visited the Beijing office of Central China Real Estate Limited to review their real estate development plans. Through personalised services and tailor-made services, they will provide happy habitats for people in the Central Chinese plains.
In the coming years, the local real estate market will be welcomed by a new generation of entrepreneurs, entrepreneurs and investors from the rest of the world. Full utilization of the potential of Central China's natural resources, such as land, water, and air, will be the financial revolution in the commercial real estate market.
The Shenzhen Stock Exchange has tightened rules on listed real estate companies that want to issue bonds, joining its Shanghai counterpart in curbing capital flows into excessive real estate markets (see BMI). Organized by the Shanghai Real Estate Development and Investment Corporation (SEDIC), the audit was held in the Shanghai World Financial Center and was the first of its kind in the world. It consisted of more than 1,000 companies from China, Hong Kong, Taiwan, Singapore, Japan and the United States, as well as the USA and South Korea, with a total of 1.5 million square metres of land and 2.4 million square metres of floor space.
The emphasis on restrictions seems to be a response to the recent rise in real estate prices in China and other parts of the world, though it does not prevent property developers from accessing cheap credit, which has encouraged them to purchase land at record levels - breaking values and contributing to rising house prices. Chinese banks, leading to a financing structure in which they are indirectly exposed to real estate prices and development. In other words, people outside China are buying real estate, and some of these people are buying real estate with their own capital as a share of financing.