http://www.charlierose.com/view/interview/10960
- excerpt - "50% of china CGP related to construction"
http://vreaa.wordpress.com/2010/04/27/chinas-re-trading-volume-collapses-recent-mortgage-restrictions-may-be-having-an-effect-after-all/
China’s RE Trading Volume Collapses – “Recent mortgage restrictions may be having an effect after all.”
China’s RE and stock markets have some direct effects on Vancouver RE in that a small number of local sales are to wealthy foreign investors from China. More important, however, is the psychological link between the two markets. Many Vancouver locals believe that our market is buoyed by China, and thus speculate on local property based on that premise. For the latter reason, this story is particularly important. It comes at the same time as ballooning inventory in Vancouver, and mortgage debt that is growing more expensive by the week. More on the Vancouver-China relationship HERE. -vreaa
From businessinsider.com 27 Apr 2010 -
“China’s property transaction volume collapsed last week. Property trading volume went down 64 percent last week from a week earlier in Shenzhen, down 45 percent in Beijing, down 38 percent in Shanghai, and down 2 percent in Guangzhou. In China’s 35 main cities where housing market data was monitored by the newspaper [China Daily], 21 saw their trading volume go down last week, with the figure in Hangzhou going down 73 percent.
China’s recent mortgage restrictions may be having an effect after all. Obviously this is just a week’s worth of data, but if this weekly data turns into a longer-term trend, one has to imagine it could be bad news for prices.”
http://vreaa.wordpress.com/2010/03/27/china-vancouver-is-the-coming-crash-in-vancouver-re-going-to-coincide-with-the-coming-crash-in-chinese-re/
China & Vancouver – “Is the coming crash in Vancouver RE going to coincide with the coming crash in Chinese RE?”
Here at VREAA we have always been of the opinion that the impact of wealthy Chinese buyers on Vancouver RE prices has been more indirect than direct. By that we mean that local speculators have been the major leveraged purchasers of our RE, and the ‘wealthy foreign buyer’ story has fueled these local gamblers. After all, foreign buyers are responsible for less than 5% of local purchases. However, having said that, we do know the anecdotes of wealthy Chinese families flying into Vancouver for the weekend, and, while here, purchasing multi-million dollar condos or SFHs on the Westside. And we were impressed, very impressed actually, by the way in which the beginning of what-would-have-been-our-crash (the price drops in 2008) followed quite remarkably the topping and dropping of the Shanghai index. Of course, we were bailed out by the free money that followed the fall 2008 crash of world markets, and we’re now back at those 2008 highs. So, here is the question: Is the coming crash in Vancouver RE going to coincide with the coming crash in Chinese RE? As grist for the mill, we give you two charts, and a generous excerpt from today’s ‘Barron’s’. “Surging credit has revived the animal spirits of Chinese investors”; “The property market looms so large in the Chinese economy”; “Housing has become a national obsession.” Ring any bells? -vreaa. [Update 28 Mar 2010 - For the record, this does not mean that we think that a RE crash in China is necessary for a serious collapse in Vancouver RE prices to occur.]
- excerpt - "50% of china CGP related to construction"
http://vreaa.wordpress.com/2010/04/27/chinas-re-trading-volume-collapses-recent-mortgage-restrictions-may-be-having-an-effect-after-all/
China’s RE Trading Volume Collapses – “Recent mortgage restrictions may be having an effect after all.”
China’s RE and stock markets have some direct effects on Vancouver RE in that a small number of local sales are to wealthy foreign investors from China. More important, however, is the psychological link between the two markets. Many Vancouver locals believe that our market is buoyed by China, and thus speculate on local property based on that premise. For the latter reason, this story is particularly important. It comes at the same time as ballooning inventory in Vancouver, and mortgage debt that is growing more expensive by the week. More on the Vancouver-China relationship HERE. -vreaa
From businessinsider.com 27 Apr 2010 -
“China’s property transaction volume collapsed last week. Property trading volume went down 64 percent last week from a week earlier in Shenzhen, down 45 percent in Beijing, down 38 percent in Shanghai, and down 2 percent in Guangzhou. In China’s 35 main cities where housing market data was monitored by the newspaper [China Daily], 21 saw their trading volume go down last week, with the figure in Hangzhou going down 73 percent.
China’s recent mortgage restrictions may be having an effect after all. Obviously this is just a week’s worth of data, but if this weekly data turns into a longer-term trend, one has to imagine it could be bad news for prices.”
http://vreaa.wordpress.com/2010/03/27/china-vancouver-is-the-coming-crash-in-vancouver-re-going-to-coincide-with-the-coming-crash-in-chinese-re/
China & Vancouver – “Is the coming crash in Vancouver RE going to coincide with the coming crash in Chinese RE?”
Here at VREAA we have always been of the opinion that the impact of wealthy Chinese buyers on Vancouver RE prices has been more indirect than direct. By that we mean that local speculators have been the major leveraged purchasers of our RE, and the ‘wealthy foreign buyer’ story has fueled these local gamblers. After all, foreign buyers are responsible for less than 5% of local purchases. However, having said that, we do know the anecdotes of wealthy Chinese families flying into Vancouver for the weekend, and, while here, purchasing multi-million dollar condos or SFHs on the Westside. And we were impressed, very impressed actually, by the way in which the beginning of what-would-have-been-our-crash (the price drops in 2008) followed quite remarkably the topping and dropping of the Shanghai index. Of course, we were bailed out by the free money that followed the fall 2008 crash of world markets, and we’re now back at those 2008 highs. So, here is the question: Is the coming crash in Vancouver RE going to coincide with the coming crash in Chinese RE? As grist for the mill, we give you two charts, and a generous excerpt from today’s ‘Barron’s’. “Surging credit has revived the animal spirits of Chinese investors”; “The property market looms so large in the Chinese economy”; “Housing has become a national obsession.” Ring any bells? -vreaa. [Update 28 Mar 2010 - For the record, this does not mean that we think that a RE crash in China is necessary for a serious collapse in Vancouver RE prices to occur.]
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