Skip to comments.Selling Frenzy In China As Gov't Slams Housing Bubble With Tax Hike
Posted on 03/12/2013 5:04:23 PM PDT by mgist
Selling Frenzy In China As Gov't Slams Housing Bubble With Tax Hike China is determined to poke holes in its housing bubble. Nowhere is this attempt more forceful than in Shanghai, where the government introduced its first-ever property tax last year. Something else is happening now in China housing. Investors who buy homes as a store of value, rather than as a place to sleep at night, are rushing to their realtors before the government implements a 20% capital gains tax on housing sales. Beijing introduced the new rule on March 1, but no one knows when it will go into effect. The new measures will have a significant impact on both demand and supply in the existing home market, Lina Wong, a managing director at Colliers International, was quoted saying in Shanghai Daily Tuesday.
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Smells like desperation.
....Hmmmmm.... How do you say “poooooff” in Mandarin?
This won’t end well, at least for China.
That tangy smell of burning brakes on a long downhill through the mountains.
Maybe the Chinese government can prevail on Obama to lecture the Chinese people on “paying their fair share”. I presume he speaks Mandarin. According to the media and Harry Reid, the Bamster is the smartest guy around.
Building them was the only way they have kept their GDP figures afloat.
This is going to be like musical chairs, with the last person holding the overpriced flats as the loser.
Maybe prices will crash so badly that the average Chinese person can afford to buy real estate.
Maybe it might be time for them to invest in tulip bulbs?
Maybe it is time for those who keep proclaiming China’s inevitable rise to economic dominance, to recognize that China’s economy is a house of cards, built on sand, and there is a wind brewing.
You’re completely wrong. China is a managed economy with harmonious and thoughtful regulations administered by disinterested third parties nothing ever goes awry.
The real dangers occur in spontaneous order where you get unregulated goods and services. In a free market the people are always at risk.