httpv://youtu.be/GVUsIlwWWM8
How about assembling a hotel onsite in fifteen days. Well, they did it in China. When I was there they built a freeway in six months that would take us 6 years to construct.
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For all your real estate needs
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John J. O’Dell Realtor® GRI
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China’s property prices are falling, with potentially far-reaching effects world-wide. And should investors think twice for buying into Chinese firms? Hong Kong’s outgoing securities regulator thinks so. WSJ’s Peter Stein and Andrew LaVallee discuss.
BEIJING — New-home prices plummeted by more than 20 percent year-on-year in the Chinese capital in May, and analysts said other cities will follow the trend in the second half of this year.
In Beijing, the average price of a newly constructed unit dropped to 23,467 yuan (US$3,400) a square meter, a month-on-month decrease of 7.19 percent, and 21.06 percent lower than the same period last year, according to SouFun.com, the largest property website in China.
Prices fell partly because more developers offered discounts to counter the cooling effect of the government’s tightening property policies.
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BEIJING —China announced Wednesday that its exports climbed 46 percent in February from a year earlier. Economists said the data signaled a rebound in consumer demand from the United States and other Western markets after the financial crisis last year.
It was the third consecutive month of increases in Chinese exports and the fastest growth in three years. Orders from the United States, the European Union and Japan accounted for almost half the growth, following a pickup in demand from emerging markets in the previous two months.
Chinese imports also rose 45 percent over the previous year, led by crude oil as factories stepped up production.
Some economists said the figures indicated China’s recovery was well under way. Tao Wang, head of China research for UBS Securities, predicted that Chinese exports would rebound to the level of 2008 before China took a big hit from the global financial crisis.
Source: New York Times
As i mentioned in a recent article, China’s real estate is super hot and may be ready to collapse, well, it looks like Hong Kong and Singapore are in the same boat. Home prices in Hong Kong have risen 25 percent and land prices have doubled. Singapore’s government has stated that because of low interest rates, it is fearful that they may be getting into an overheated real estate market and are going to increase the housing market.
.According to the Wall Street Journal:
“Strong results in a Hong Kong government land auction are the latest sign that the city’s real-estate market is surging higher after a brief lull, as government officials here and elsewhere in the region grapple with how to cool off overheating property prices.
Around the region, easy credit and ample liquidity is fueling fears that real-estate prices may be rising to irrational levels.
Unlike China and Singapore, however, Hong Kong has little control over interest rates because its currency board system, which pegs the local currency to the U.S. dollar, forces it to import U.S. monetary policy.
“Hong Kong property buyers have been in a prolonged low-interest-rate environment, and now they’re behaving like drunken drivers on the road—they don’t think about consequences,” Ms. Wong says, estimating that prices have increased 5% this year. While speculative activity has been subdued, she argues the public is “overstretching” itself, convinced that “prices will go up forever.”
Sounds familiar doesn’t it? What do you think?
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Another building bubble? Yes, but this time it’s not the US that has a building bubble, we are way past the bubble and on the path to recovery. This time it’s China, with banks making as many loans as possible to get the mortgage upfront fees. (Does this sounds familiar to you?)
Flipping properties, factory owners are more interested in buying and selling property then production. Get this, even manufacturing in China is going out of country because of high labor prices!
According to the Star.com:
“Frenzied developers with access to cheap money are creating a glut of premium office space and luxury apartments, priced at about 80 times the average income of the city’s residents. Prospective middle-class homeowners, in panic-buying mode, are snapping up two properties at once, hoping to flip the second one to finance the first. Civic officials are encouraging the building boom.
The sale of vacant lots bolster their municipal coffers.
Banks eager to reap upfront fees are granting mortgages to all comers. Even factory owners are in on the speculation, generating more profit from flipping property than from traditional manufacturing, which increasingly is moving offshore to Vietnam, Malaysia and other nations with lower labour costs.”
Read the full article at TheStar.com
John J. O’Dell
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China may be having the same economic troubles that the United States is having, but groups of Chinese are coming here to buy up some bargains. A trip organized by SouFun Holdings, China’s leading property website company announced a tour to America to buy real estate. The trip was heavily oversubscribed and only 40 will make the tour to buy property in the $300,000 to $800,000 range.
According to the Timesonline: “Mo Tianquan, the chairman of Soufun.com, told The Times that his clients were hardly run-of-the-mill Chinese in a country where GDP per head is about $4,000 a year. “These people are not ordinary members of the masses,” Mr Mo said.He said: “I don’t know how much money these people have. I would say they must have at least a million dollars in cash. That’s cash they can spend any time – not investments fixed already in real estate or shares.”
Mr. Tianquan estimated that at least a third of the group were buying for their children studying in the United States. They are interested in both houses and flats, “properties near universities or high schools and bankrupt homes auctioned by the courts. Usually these houses are only half the price they used to be”
“He said: “I don’t know how much money these people have. I would say they must have at least a million dollars in cash. That’s cash they can spend any time – not investments fixed already in real estate or shares.”
One question is why the Chinese would want to buy in the United States when the yuan is seen as likely to rise further in the long term, thus effectively harming the value of their American property.
Mr Mo said that this was a minor consideration for these members of China’s tiny elite. “They don’t care if the dollar will rise or not,” he said. “They are using pocket money to buy houses. To spend these sums has no impact on their way of life. If it makes a profit, and how much, is not a consideration.”
There is one final hurdle: it is not clear how even the super-rich will get their assets out of China, which limits the amount a Chinese person can take out each year to $50,000.”
Its bargain time in the United State again. Some of you may remember the down turn we had in real estate in the 1980’s The Japanese came over here and bought a huge amount of real estate..They poured nearly $300 billion into high-profile properties like Rockefeller Center in New York and the Pebble Beach Golf Club in California. Do you have a feeling that history is repeating itself? I remember the doom and gloom of those days, everyone thought it was the end of the real estate market. We’ve had several booms and busts in the real estate market since then. The real estate market, like the stock market, will always have it’s up and downs.