Sunday, October 31, 2010

Developers publicly stated the significance of housing prices

 Recently, a real estate developer publicly declared that the price of its real estate projects will be fully regulated. There are three reasons for the increase, first, construction materials prices rose sharply; Second, the price of the current real estate market has entered the bottom of a variety of funding into the real estate market, a good time to bargain-hunting; third is optimistic about China's future economic, housing prices is inevitable so.
this phenomenon, the real estate market will be very puzzled why the price at the sound of a national real estate market, do not shouted a small real estate developers in the real estate market in a recession, shouting to the government to rescue the real estate market, yet there are real estate developers to make the price of its project to sell?, of course, in a highly competitive market each condition and a business environment in which will be different, so take the business strategy, operating model will be different. What a business what kind of business model, what kind of marketing strategy are business own thing, outsiders can not know. Only the infinite diversity of enterprises, to be able to form a truly effective market competition. Therefore, the real estate developers to take housing prices either strategy or the strategy of falling house prices are taking their own thing. But The developer comes down out of the several reasons for housing prices, the market seems very different from the actual situation.
because, from the real estate developers for housing prices first reason of view, is his Project construction materials prices rose because of rising prices. In other words, his real estate project is the production cost pricing, production factor costs of housing prices, the housing prices would, of course. Of course, in a normal market, All the ingredients in a fully competitive market and products,UGG boots cheap, the cost-benefit analysis is a business must do every homework. company's products to its cost price of course. However, the Chinese real estate market really is or can be priced up the cost of ? If the Chinese real estate market is cost pricing, then the real estate market will not appear profits model, it will not be a huge bubble in the real estate market, nor will there be in a short period of time to gather the national wealth in a few hands .
Moreover, there are several features of the real estate,UGG boots, one of the real estate property, real estate, unique product, which is easy for the real estate business to facilitate monopoly pricing; Second, China Government land completely mastered by the real estate market of non-market factors will inevitably lead to monopoly pricing of real estate companies; Third, housing is both a consumer investment product, when real estate is the investment goods, its price does not depend on the residents housing supply and demand, but canceled at the risk of investors to enter the real estate market and the expected market price and so on. is the real estate market with such features, the real estate market prices are often not determined by the cost factor, but non-cost factors to decide. If China's real estate market is the cost of decision, then the vast majority of residents Go to order the housing there would be no barrier to insufficient capacity to pay, because the real estate market prices will be lower than the residents ability to pay up.
from the second reason, the current price of the domestic real estate market has reached bottom, all kinds of money can be poured into the bargain-hunting. A few days ago, I wrote a domestic real estate market, buy the dips these funds to go into? the end of the real estate market for the copy, it is funny, the domestic real estate market prices in many parts of which do not fall off, but in the rising process, then how can the end of the market at all. Since not the end, a variety of funds to enter the real estate market, buy the dips? the current situation as well. foreign capital is of course not let them in, it is the policy of strictly limited government. For domestic funds, the enterprise is called a liquidity squeeze in , asked the Government to relax credit policies. In this case, the domestic enterprises to enter the real estate market funds hunters there anything? Moreover, the domestic real estate market is not the end all. Since there is no end, how to find bargain-hunting opportunity.
The third reason, of course, optimistic about China's future economic development, I was in Hong Kong in 1998, . but optimistic about China's economy to that house prices will rise to the ceiling? The key is to see what kind of Chinese real estate development model, depending on whether the income level of Chinese residents grew more quickly and faster rate of increase the rise in property prices. We need only look to the U.S. economy nearly two hundred in the coming year, the U.S. economy continues to boom a hundred years, its financial assets and wealth has increased thousands of times, but the U.S. housing prices go up not only did not rise to the ceiling and will always coincide with the vast majority of the residents ability to pay. What's more, as an industry,UGG bailey button, it can with the rapid economic prosperity, but it also will continue to cyclical adjustment.'s optimistic about economic prospects for the future, does not mean that China the real estate market is not cyclical adjustment. particularly when the housing for the consumer, it must pay income residents can, and if people can not afford to buy houses, then the best prospects for future economic, housing prices to keep the ceiling is not possible.
In short, there is a general in the Chinese real estate market, the cyclical adjustment cases, individual developers want pushed up the price of its projects to reverse this situation is impossible. particularly in the domestic real estate market conditions and the environment, target customers and real estate policy has undergone a fundamental change in the circumstances,Bailey UGG boots, want to change the current real estate market, the domestic consumption-oriented model and the real estate market is cyclical adjustment that is impossible. rapid price up 8-year cyclical adjustment of its domestic real estate market will be a long process.

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