China’s RE Trading Volume Collapses – “Recent mortgage restrictions may be having an effect after all.”

China’s RE and stock markets have some direct effects on Vancouver RE in that a small number of local sales are to wealthy foreign investors from China. More important, however, is the psychological link between the two markets. Many Vancouver locals believe that our market is buoyed by China, and thus speculate on local property based on that premise. For the latter reason, this story is particularly important. It comes at the same time as ballooning inventory in Vancouver, and mortgage debt that is growing more expensive by the week. More on the Vancouver-China relationship HERE. -vreaa

China Skyscraper Village

From businessinsider.com 27 Apr 2010 -

“China’s property transaction volume collapsed last week. Property trading volume went down 64 percent last week from a week earlier in Shenzhen, down 45 percent in Beijing, down 38 percent in Shanghai, and down 2 percent in Guangzhou. In China’s 35 main cities where housing market data was monitored by the newspaper [China Daily], 21 saw their trading volume go down last week, with the figure in Hangzhou going down 73 percent.

China’s recent mortgage restrictions may be having an effect after all. Obviously this is just a week’s worth of data, but if this weekly data turns into a longer-term trend, one has to imagine it could be bad news for prices.”

One response to “China’s RE Trading Volume Collapses – “Recent mortgage restrictions may be having an effect after all.”

  1. There is “concern” the Chinese authorities will implement a US-style property tax, forcing investors without cash on-hand to liquidate. It’s unclear if the crimping of mortgage loans had significant impact.

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