Monday, January 24, 2011

Editorial the purchase of second and third tier cities that the key lies in the implementation

 Editorial

Recently, the Ministry of housing construction requirements of the end of 2010, a larger rise in property prices in some cities that introduced restriction rules. And with the purchase of the policy in 2010 introduced the first of 16 cities, the purchase of a new batch of second and third tier cities are cities, these cities is the national property market in December 2010 led to sharp rise in turnover a new round of prices rebound the protagonist.

led the second and third tier cities as housing prices were already inklings. Known as the tier cities, second and third line a little loose control of the city, and these cities in the past few years, housing prices is limited, so there is considerable space. Correspond with the reality of this theory is, the brand real estate companies to accelerate in the second and third tier urban layout, second and third tier cities into Denver real estate more and more investors have also moved to second and third tier cities. Coupled with the rigidity of demand factors, some occupied, thus the birth of a similar accident is the result of Italy, the China Index Research Institute released a hundred city price index report pointed out, the list ranked in December the forefront of house prices are the second and third tier cities.

the face of this situation, different groups in these cities can be described as different mentality. Only a few high-income house prices in the current round of frenzy to get the asset value-added opportunities quickly, as in the second and third tier cities, other economic factors far less active in first-tier cities, most people's income is still a very low level on a meteoric rise, almost shoulder to shoulder with the first housing prices as much about urban life, such as worse. The local government is complex and ambiguous state of mind, on the one hand, the weight of people's livelihood, after all, can not be ignored, on the other hand, the more the more sought-after selling land to the local financial contribution to the remarkable, and the high prices on GDP is even more impetus to carry on.

market regulation in the first-tier cities also no significant effect of the circumstances, the second and third tier cities, When the first-tier cities of high prices, people can throw, may be a sense of comprehensive mental contusion. Line the city's housing prices far beyond the capacity of middle-income groups, planted a widening wealth gap, such as to attract resources to the one-sided focus on the real estate industry, and other consequences of young people wish to kill, second and third tier cities in other conditions present do not match situation, the only housing prices soared, the same consequences of expansion in a geometric manner. If people are worried about a property bubble first-tier cities looks somewhat like a curse, then the second and third tier cities, the threat of the bubble seems to be much more practical. Last December, the Chinese Academy of Social Sciences published

both echoed public opinion, or in response to the bubble may come, will be introduced to some of the purchase of second and third tier cities rated in a timely manner. Nature is not a restriction measures are not defective, the nature of the administrative intervention doomed to escape the controversy, in the long run, the end of fiscal land, to give people more opportunities to add value assets, the government build more low-rent housing, it to return to rational prices is the fundamental approach, but recognized as the best in the most fundamental way in the foreseeable period of time under the premise of not fully launched, the purchase of the suppression effect on house prices is at least practicable period. People are accustomed to look at house prices decreased significantly, the government is the present case, was only slightly higher up the momentum of it? Shrewd real estate developers and investors who have fought in second and third tier cities, in fact, the purchase of the first tier cities is beginning to show that the power of proof.

restriction will certainly be effective, the key is whether the effective implementation. Now clear that the officials of the Ministry of Housing and Urban will put pressure on local officials, Limiting the first-tier cities share the past, there have been softened in many places the phenomenon of lethal control policies, in contrast, have tasted the sweetness of land finance, economy in transition is more difficult second and third tier cities the power and regulate the property market significantly weaker than first-tier cities, the purchase of future implementation of the process, how to prevent a boycott control policy is obviously more pressing issues.

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