Originally Posted by
basic
China property price in Shanghai, Beijing, Shenzhen & all major cities have been plunging down in last 1-2 months, down 20-50%, many developers are cutting price to raise fund as their cash flow dry up, there is no other channels to borrow now, banks, stock market, bonds are all shut, only black market lending at 100% interest/yr which some developers has no choice...with such price cutting, response is still no good, volume is still very low, instead many earlier buyers return their units to developers as before completion, already see 30-40% price down, so many riots & unrest in china now on such cases....situation in china property will get worse in next few months as china govt already said, cooling measures for property will not lift, no loosen of credit in property market in next 12 months, govt want to see property price down to affordable level.....
Same to HK, property price already down 15-20% in last 1-2 month, many chinese dump their property in HK to channel funds back to China due to tight credit control in china. Also due to bad experience of 1996/7, many sold recently at 5-10% below buying price in 1996/7, they do not want to go thru' the hardship period of last 15/16 yrs, working for life to pay off housing debt. Negative asset in HK in last 1 month already raised to 2000 cases, the number will keep increasing in coming months with property price continuing to drop due to global debt crisis, trade war, no demand, tight liquidity, rate hike, job retrenchment & deteriorate situation.
Spore too, many developers already giving discount of 15-20% to get rid of their holding as they know, the later they get out, lost will be higher. Resale owners down price more than developers in order to let go their units as tons of sellers out there, >150,000 units now in the market for sales, no buyers now due to property is illiquid investment, any collapse of economy in PIIGS in Europe or further downgrade of USA this month or China local govt debt or Japan debt will immediately turn the world into double dip recession, domino effect to pull whole world down to standstill economy.