Real Estate Crash In China: Foreign Funding Down 80%, Land Sales Down 57%, Starts Down 27%

Real Estate Crash in China Underway: Foreign Funding Down 80%, Land Sales Down 57%, Starts Down 27%; Expect Chinese GDP to Plunge Capital Flight From Greece Accelerates, a 5bn in May, Exodus Even Hits Time Deposits; Fed, ECB, BOE, BOJ Balance Sheet Comparison Inquiring minds are reading an excellent report China Real Estate Unravels by Patrick ... (more)

[Cow Dung]

Sure do get the pains, now the Red China can fully understand how does the Economic Inflation of a super pwr China work

Oh BTW China owns the USA as they always say that ?

LOL

[Cow Dung]

Come to see China as RayH's invitation, all you can eat n put on his bills

LOL

[CCPwillcollapse]

"Ray" is frantically posting absurd claims that people in China under the CCP serfdom system actually "own" their homes!

Anyone familiar with China knows NOBODY owns a home----China is a nation of renters and everyone has only leases granted by the owner of all property in China; the CCP.

The regime is falling apart at the seams and the economy is imploding.

Ergo, the lies will get bigger as CCP desperation grows.

[CCPwillcollapse]

Year-on-year sales in Q1, for all real estate, was down 14.6%.
Residential property sales were down 17.5%
Office sales were down -10.2%
Sales in January-February were a disaster, falling 20.9% overall, compared to the first two months of 2011,-24.7% for residential.
Total amount of floor space “for sale” was up 35.5%, compared to the same date last year
Floor space of residential units “for sale” grew 47.4%.
At the end of 2011, total floor space “under construction” was roughly 4.6 times the floor space sold
A year and a half worth of excess inventory is hidden somewhere in the pipeline
New starts in April fell 14.6% year-on-year and 27.0% month-on-month, for property as a whole
Housing starts fell -14.4% year-on-year and -23.4% month-on-month
Office starts fell -21.0% year-on-year in April, and -45.1% compared to March
Retail property starts fell -18.7% year-on-year, and -36.8% compared to March
Land sale revenues in April (RMB 27 billion) were down -54.7% compared to April last year
Foreign funding for property development was down -91.4% in March and -80.8% in April, compared to the same months last year.


Clearly a crash is underway. The above stats also show the soft-landing thesis is written on toilet paper.


Read more: http://www.businessinsider.com/real-estate-cr...

[boondock saint]

That was very good !

'The above stats also show the soft-landing thesis is written on toilet paper.'

[lct]

the number is untrue, but if so it sounds good.

in China, nobody uses his/her housing as ATM machine, so after owning a housing, it doesn't matter how the housing price goes. only if it gets lower enough, so everyone can get second housing as holiday housing.

in China, there are hardly someones over 40 years old still paying mortgage, most people concerning real estate high price is youth. it is good for them because it would be easier for them to own housing.

[lct]

I would love to see the government bailout those developers using foreign fund and turn them into government owned nonprofit developers. How cool that would be!:)

[Cow Dung]

CCPwillcollapse wrote:

"Ray" is frantically posting absurd claims that people in China under the CCP serfdom system actually "own" their homes!
Anyone familiar with China knows NOBODY owns a home----China is a nation of renters and everyone has only leases granted by the owner of all property in China; the CCP.
The regime is falling apart at the seams and the economy is imploding.
Ergo, the lies will get bigger as CCP desperation grows.

Ditto ...ditto ..........

All China Topix readers must understand and know those home properties in every Communist Country are under Red Govt's property owned but the occupant/owner/buyer are just a renter and be convicted at anytime at will

Halleluzaaaaaaaaaaa

[RayH]

lct wrote:

I would love to see the government bailout those developers using foreign fund and turn them into government owned nonprofit developers. How cool that would be!:)

Actually, just let the developers go under and then the PRC government acquire their real estate cheap and give it away as social housing.

[RayH]

And here's the reality in China:

China Home Ownership Rate Outpaces Rest of World

Nearly 90% of China’s families own their own homes, according to a report published jointly by the Southwestern University of Finance and Economics and the People’s Bank of China. That’s far higher than the average figure of 60% for the world as a whole.

The home ownership rate is 85.4% among urban households, according to interviews with nearly 4,000 families. But due to the large number of apartments owned as investments, on average each urban household owns 1.22 apartments, a much higher figure than the 0.74 units reported in 2010 by China International Capital Corporation.

In rural areas the home ownership rate is 94.6%.

By comparison, the home ownership rate in the US stood at 65.4% at the end of the first quarter of 2012, the lowest level in 15 years due to homes lost to foreclosure, tighter mortgage lending requirements and loss of the investment incentive in owning in light of stagnant or falling real estate values.

The US home ownership rate had hit a record high of 69.2% in June of 2004. The financial crisis of 2008 triggered a steady decline to 66 percent as of the fourth quarter of 2011.

The Chinese home ownership report’s findings were questioned by netizens in online discussions. Netizens, who tend to be younger, pointed out that they and their acquaintances don’t own their own apartments. They suggested that the misleading findings may be attributable to the way “family” is defined.

“A Chinese family may consist of 12 members, but owns only one house,” one poster from Shanghai pointed out.“A family also can be a couple with several houses. So I feel the report is meaningless.” He said he has been an accountant for five years in Shanghai but still can’t afford the down payment on an apartment.

Speculative purchases of second and third homes by wealthy families have been blamed for the surge in housing prices that have put apartments out of reach of many residents of China’s leading cities. In April of 2010 the central and regional governments began implementing credit-tightening measures to curb real estate speculation in an effort to bring down prices and avert a speculative bubble. It also instituted a push to build low-income housing.

In April the average real estate price in 100 cities dropped for the first time on both a monthly and yearly basis since China initiated its cooling measures, according to a report from the China Index Academy.

But the construction boom of the past decade has produced an improvement in living conditions. In Shanghai the average per capita living space reached 17 square meters (183 square feet) in 2011, up from 15.5 square meters (167 square feet) in 2004, according to the Shanghai statistics bureau.

[CCPwillcollapse]

lct wrote:

the number is untrue, but if so it sounds good.
in China, nobody uses his/her housing as ATM machine, so after owning a housing, it doesn't matter how the housing price goes. only if it gets lower enough, so everyone can get second housing as holiday housing.
in China, there are hardly someones over 40 years old still paying mortgage, most people concerning real estate high price is youth. it is good for them because it would be easier for them to own housing.

Nobody in China "owns" a home.

They are all serfs who buy leases from the CCP landlords, you liar.

The state takes all the increase in value and every Chinese tenant is left with NOTHING after 70 years.

"everyone can get second housing for holiday"!

What a joke! Tell that to the hundreds of millions of Chinese living in caves, shantytowns, and mud huts!

[CCPwillcollapse]

RayH wrote:

And here's the reality in China:
China Home Ownership Rate Outpaces Rest of World
Nearly 90% of China’s families own their own homes, according to a report published jointly by the Southwestern University of Finance and Economics and the People’s Bank of China. That’s far higher than the average figure of 60% for the world as a whole.
The home ownership rate is 85.4% among urban households, according to interviews with nearly 4,000 families. But due to the large number of apartments owned as investments, on average each urban household owns 1.22 apartments, a much higher figure than the 0.74 units reported in 2010 by China International Capital Corporation.
In rural areas the home ownership rate is 94.6%.
By comparison, the home ownership rate in the US stood at 65.4% at the end of the first quarter of 2012, the lowest level in 15 years due to homes lost to foreclosure, tighter mortgage lending requirements and loss of the investment incentive in owning in light of stagnant or falling real estate values.
The US home ownership rate had hit a record high of 69.2% in June of 2004. The financial crisis of 2008 triggered a steady decline to 66 percent as of the fourth quarter of 2011.
The Chinese home ownership report’s findings were questioned by netizens in online discussions. Netizens, who tend to be younger, pointed out that they and their acquaintances don’t own their own apartments. They suggested that the misleading findings may be attributable to the way “family” is defined.
“A Chinese family may consist of 12 members, but owns only one house,” one poster from Shanghai pointed out.“A family also can be a couple with several houses. So I feel the report is meaningless.” He said he has been an accountant for five years in Shanghai but still can’t afford the down payment on an apartment.
Speculative purchases of second and third homes by wealthy families have been blamed for the surge in housing prices that have put apartments out of reach of many residents of China’s leading cities. In April of 2010 the central and regional governments began implementing credit-tightening measures to curb real estate speculation in an effort to bring down prices and avert a speculative bubble. It also instituted a push to build low-income housing.
In April the average real estate price in 100 cities dropped for the first time on both a monthly and yearly basis since China initiated its cooling measures, according to a report from the China Index Academy.
But the construction boom of the past decade has produced an improvement in living conditions. In Shanghai the average per capita living space reached 17 square meters (183 square feet) in 2011, up from 15.5 square meters (167 square feet) in 2004, according to the Shanghai statistics bureau.

No source quoted, huh?

China doesn't even rank, dummy:

http://www.nationmaster.com/graph/peo_hom_own...

Your source is phony CCP propaganda, so it is no surprise you are AFRAID to cite it!:

http://www.globaltimes.cn/NEWS/tabid/99/ID/70...

and that is taken from the "Beijing Morning Post"

In fact not ownership at all:"What we have is a 70-year lease instead of life-long property ownership. It's not different from renting a house."

Stupid, scamming CCP liar!

[CCPwillcollapse]

Year-on-year sales in Q1, for all real estate, was down 14.6%.
Residential property sales were down 17.5%
Office sales were down -10.2%
Sales in January-February were a disaster, falling 20.9% overall, compared to the first two months of 2011,-24.7% for residential.
Total amount of floor space “for sale” was up 35.5%, compared to the same date last year
Floor space of residential units “for sale” grew 47.4%.
At the end of 2011, total floor space “under construction” was roughly 4.6 times the floor space sold
A year and a half worth of excess inventory is hidden somewhere in the pipeline
New starts in April fell 14.6% year-on-year and 27.0% month-on-month, for property as a whole
Housing starts fell -14.4% year-on-year and -23.4% month-on-month
Office starts fell -21.0% year-on-year in April, and -45.1% compared to March
Retail property starts fell -18.7% year-on-year, and -36.8% compared to March
Land sale revenues in April (RMB 27 billion) were down -54.7% compared to April last year
Foreign funding for property development was down -91.4% in March and -80.8% in April, compared to the same months last year.


Clearly a crash is underway. The above stats also show the soft-landing thesis is written on toilet paper.


Read more: http://www.businessinsider.com/real-estate-cr ...

[CCPwillcollapse]

Ray! Why did you HIDE your source?

Is it because it is a CCP fabrication?

[CCPwillcollapse]

Ray!

Are you ASHAMED to cite what you yourself know is fake information from the Chinese Communist Party propagandists?

You CCP losers are so predictable!

Good that you are totally reliant on lies and so weak in the head; it will make disposing of the CCP that much easier!

[CCPwillcollapse]

Ray! Stop hiding, you coward!

Are you ASHAMED to cite what you yourself know is fake information from the Chinese Communist Party propagandists?

You CCP losers are so predictable!

Good that you are totally reliant on lies and so weak in the head; it will make disposing of the CCP that much easier!

[CCPwillcollapse]

Come on, "NutlessRay", grow a pair you CCP wimp!

[CCPwillcollapse]

You CCP are so weak!

Ha!

[CCPwillcollapse]

Ray! Stop hiding, you coward!

Are you ASHAMED to cite what you yourself know is fake information from the Chinese Communist Party propagandists?

You CCP losers are so predictable!

Good that you are totally reliant on lies and so weak in the head; it will make disposing of the CCP that much easier!