Well, you are right, few, they cannot put the hammer down too hard on RE or they risk derailing the recovery, something we have talked a lot about. Here is what the city of Shanghai is doing. Does not seem so oppressive to me in the least bit......Shanghai is implementing stricter measures aimed at cooling the city's rising home prices, in a move which might be a prelude to tightening measures around the country.
The Shanghai government will increase the minimum down payment for second-home purchases from 60 percent to 70 percent, the city's housing bureau said in a statement.
Starts tomorrow. Lot of fear ahead of this once a decade meeting. Here are some notes on how they will address property.....Land
SOEs are not the enduring legacy of old-style socialism in China.
The regulatory regime governing land transactions and transfers is in more urgent need of change due to rapid urbanization and an aging population .
In the "383 Blueprint," the spotlight shines brightly on land reform.
UK-based Barclays Bank expects Beijing to define and register land rights for rural residents by next year.
Beijing is likely, according to a report by the bank, to allow rural collective land to be transferred by 2015.
The country will also increase land compensation to farmers and improve planning and usage of urban and rural land beyond 2015, the report speculates.
The land reform - to be the fourth since the Communist Party took the power in 1949 - will be aimed at reducing social tensions, enhancing farmers' income and increasing supply to tame soaring property prices. The country's land - although all owned by the state - is classified into several categories. In rural regions, plots are held collectively but divided into agricultural and rural construction land.
The latter cannot be used for mass residential, commercial or industrial use unless local governments requisition sites and change their usage.
About 6.5 trillion yuan worth of such rural land can be activated and circulated in the market following measures that could be floated at the plenum, according to a recent report.
Around 700 million out of the country's total 1.3 billion people still reside in villages and small towns, occupying 170,000 square kilometers. Land occupied by each rural resident - mostly farmers - is more than triple that taken up by urbanites. Also, land in rural areas is priced at an average of just half of comparable plots in the city.
China Securities Daily has already cautioned authorities that land reform must be gradual because local governments may not be able to handle too many rural sites being released into the market for commercial use.
"Land revenue has been and will be the major source of local government revenue. The proposed land reform should only be tested on a small scale, for example in economically-developed Jiangsu and Zhejiang provinces," the paper urged in an editorial in September.
Gu Yunchang, vice chairman at China Real Estate & Housing Research Association, attributed China's soaring home prices to limited land supply as four-fifths of the nation's land resources are locked away in rural regions - mostly as rural construction land.
"As urbanization continues, China needs to revise its laws to fully realize the value of rural land and truly improve farmers' living standards," Gu said.
Land in urban areas was sold at an average of 3,286 yuan per square meter in the third quarter, up 1.85 percent from the previous three months and the highest in six quarters, the Ministry of Land and Resources said.
Against this backdrop, home prices rose for the 17th straight month in October when properties were sold at 10,685 yuan per sq m in 100 major cities - up 1.24 percent from September and nearly 11 percent higher than a year earlier, according to Soufun, China's largest real estate information platform. Home transactions hit 270,700 in 54 large cities last month - the second single- month high this year, Centaline agency said.
Authorities have vowed to release new measures, such as expanding the property tax to establish a long-term mechanism in the real estate market.
Last week, Xi pledged to meet the goal of building 36 million affordable homes in the five years leading up to 2015.
He assured the public that "the government will focus on providing affordable homes while allowing the market to play a dominant role in housing supply to meet the diverse needs of the people."
Xi's words may have signaled the eventual demise of current cooling measures.
A bit more on this topic. Helps you understand what could be going on here....Mr. Jin believes the government will toughen existing policies to tamp down demand, rather than introduce sweeping new measures without a coherent long-range policy on housing.That means higher down payments for homes and more restrictions on financing and mortgage rates for second homes, as well as slower mortgage-loan approvals. It's likely the government will also increase stamp duties and capital-gains taxes, and broaden the criteria for restrictions on people purchasing multiple properties.There is also a chance China will finally roll out a broader property tax, something that Shanghai and the central Chinese metropolis of Chongqing have already introduced on a trial basis. While smaller cities will likely be spared to encourage investment and growth, a wider property tax for big cities, mainly on the industrialized east coast, will be studied if not implemented at the Communist Party meeting.Media reports have also suggested that China might introduce an inheritance tax. Although those plans are thought to be only at the discussion stage, it could have a serious impact on housing in China, where many families buy property to pass down to their children.China's leadership is set to gather for the less-than-catchy sounding third plenary session of the 18th Central Committee of the Communist party of China in Beijing from November 9 to 12. Despite the lumbering name, previous meetings have been vital in outlining government policy, with Deng Xiaoping using one to deepen agricultural reforms and Jiang Zemin using a 1993 meeting to cement reforms that led to China joining the World Trade Organization.For president Xi Jinping, this meeting is the first clear chance to lay out his plans for reform, a topic he says is key to his administration - and for which he's ready to sacrifice China's economic growth, targeted at 7.5 percent for this year.
Well, you have to know they are going to take some action to cool housing. Once they announce what it is perhaps we get a bounce from that if the new curbs are not too harsh. This is what one guy sees......With China's Communist party preparing for an important meeting due to start on Saturday, many property-market watchers are expecting tougher curbs on real estate sales. Home prices have been moving faster than the government believes is comfortable and, to some eyes, reaching bubble levels.Property sales have rebounded in 2013, and there's been a run in Chinese property stocks. But the prospect of tighter housing policies has been underestimated, according to Mizuho Securities analyst Alan Jin, who downgraded the China property development sector to neutral at the end of October. "We think that the government will be forced to take some action to cool down the market," he said in a report.
250000 sale and then a 150000 sale on SFUN, all within a half hour. Tutes are taking their profits. Perhaps they see a peak? Yikes. The more realistic outlook though is that this is sustainable for the near future (6 months). The Chinese govt starts their policy meeting on Nov 9 and perhaps this is breeding fears so folks are taking the money and running.
kevin, if you look strictly at earnings SFUN just earned 1.15 while EJ is forecast to earn .16. So that is nearly 7:1. In the past it has been more like 6:1 though as far as the stock price goes. Only a relatively small portion of their revenue streams are comparative, however.
pedro, you nailed it with that vivid wording. The stock was down 4.10 as I started typing this and is now down 2.50 as I am finishing. Someone got their price and got out, but based on these numbers, I have to believe MANY others will want in on this as well. Would not be at all surprised if it climbs back to green.
Right now they are SELLING the news. This has happened a lot with EJ the past couple of years as well. Still early though. Tells you NOTHING is a sure bet. Someone sold 340000 shares and the stock dropped 4 bucks. wowowowow
beats by $.29. Are you kidding me??!!
SouFun Holdings beats by $0.26, beats on revenue
SouFun Holdings (SFUN): FQ1 EPS of $1.15 beats by $0.26.
Revenue of $185.0M (+45.4% Y/Y) beats by $11.29M. (PR)
yes, aby, but anytime there is the LEAST BIT OF HINT they will put a wet blanket on things the housing market reacts negatively. The old regime did everything they could to control the market rather than letting the market dictate itself.
Maybe an E House realtor nailed this?
A DUPLEX at Tomson Riviera became the most costly apartment in Shanghai when it was sold for 150 million yuan (US$24.6 million) last week and set a record in the city for a single home.
The 824-square-meter property in the heart of Little Lujiazui in the Pudong New Area was one of the 107 units sold last week across the city, whose average price cost more than 50,000 yuan per square meter, Shanghai Deovolente Realty Co said in a report released yesterday.
“The price beat the city’s earlier record for a home which was set in August 2011 when a 850-square-meter villa in Pudong’s Dongjiao was sold for 135 million yuan,” said Lu Qilin, a Deovolente researcher.
“Robust sales of luxury houses, therefore, helped the city’s average home price stay above the 25,000 yuan per square meter threshold for the third consecutive week.”
The purchases of new homes, excluding government-funded affordable housing, climbed 5.1 percent to 376,000 square meters in Shanghai last week, ending above 300,000 square meters for the fourth straight week. The new homes were sold for an average 25,524 yuan per square meter, up 2 percent week on week, according to Deovolente data.
Meanwhile, Huang Zhijian, a chief analyst at Shanghai Uwin Real Estate Information Services Co, suggests that as long as supply remains tight, the trend of rising prices across every segment of the market will continue amid a sustained strong momentum.
In September and October, the sales of new homes in the city both exceeded 1.4 million square meters.