Please write your local Chinese Supreme Leader and ask them not to repeat the same mistakes ...2
"We have observed little effect of the policy details thus far," Yao Wei, China economist with Societe Generale SA in Hong Kong, told the Global Times, rejecting that housing prices would cool in the foreseeable future.
The 20 percent capital gains tax, one of the most talked about measures aimed at reining in home prices, inadvertently resulted in spiking second home transactions and prices, Yao stressed.
Liu Ligang, chief China economist at Australia & New Zealand Banking Group in Hong Kong, predicted a 5 percent rise in China's home prices would be likely this year, despite a downward spiral expected for prices in smaller cities, which are commonly seen as suffering a housing surplus.
Liu said many people had last year anticipated government polices would cool housing prices, causing buyers to delay their purchases. However, soaring home prices over the past year persuaded them that waiting any longer might be unwise.
"The situation has become tougher as housing supply has remained constrained. Many property developers have scaled back investments due to the government's housing controls," he said.
Economists' skepticism over the new policy's effectiveness mirrors public frustration about the government's previous efforts to cool the real estate sector, said Yao, adding expectations are high that the new government will take moves to tackle the problem.
"We hope [the government] won't repeat the past when there was also a lot of anticipation that failed to materialize," Yao said.
Instead of short-term measures that claim to deal a blow to housing inflation, policies designed to offer all-round solutions to the nation's runaway market are advised by Liu, who warned a real estate bubble has already been simmering in some big cities.