Overheated House Market in China

I wonder how long will this continue… Last Sunday I helped my relatives to buy two apartment suites in the peripheral area of Xiamen, and it was not an enjoyable shopping experience.

We went there at 7:30 a.m in the morning and only managed to meet the sales representative at about 11:00 am. In less than two minutes, we decided to buy two sets and rushed to the counter for the paperwork and deposit.
Everyone around me appeared eager to buy and the atmosphere was nothing short of feverishness. The media people came and there were two police cars in the scene. One of the security guards told me some people began to queue up from previous night.

There was a strange festivity in the air and everyone seemed to have a party. But the real winner is the real estate sharks.

I consider this is very abnormal and the real estate companies are making obscene amount of money out of the pocket of common wage earners. How long will this last? I am not sure, but so far the bubble is still growing, at least in Xiamen.

(photo shows people queuing up to buy the apartments)

14 replies on “Overheated House Market in China”

The location is about one hour bus ride from the city center, and the cost per square meter is 6500 Yuan.

Many people think it has a potential to rise to 10,000 in a few years.

What do you think of the house market in China?

Like everyone else, I think it’s too damn expensive. I mean 80% of our generation can’t afford to buy homes even with the help of their parents.

The next question is when it will collapse? Or the G0v can just print money and give everybody a raise for them to pay their mortgage?

I don’t think it will collapse because the government won’t and can’t allow that to happen (if they still want to stay in power).

Print more money, yeah that’s a good idea…..the 100 yuan bank note in my hand will only buy a coke in the future.

Hey, John. Just tried to visit your blog but it is not there anymore. Are you moving your site to a new place? Write back when you setup a new place for your blog or tell me why you stopped writing.

I saw some cat pictures on your site and I wondered what happened. You have always been an aficionado of cats? Good pictures and captions.

BTW, the average housing price in Beijing has dropped 8000 yuan since the government announced measures to curb the overheating in the housing market.

Where will the housing price land in five years? I became very pessimistic about the whole economy and I see a looming inflation heading to this side of the Pacific.

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