I am fear
Posted on Jul-08-2009· by china investor
I must recognition, I am FEAR.
Why, I read paper today, the price of a house in suburbs rose up 100% in recent 6 moths !! In many city the price of real estate rose up more than 30% in recent 3 months .
I read a report wrote by Social Sciences OF China, in China , nearly 40% small and medium-sized company closed , I watching CCTV , the press said in Bei Jing Train Station , a worker just eat 1 YUAN for his dinner. Official said there are more than 20,000,000 migrant workers lost their job. I hear some old woman said to another old woman, her grandson had graduate more than 1 year but can not find job.
So rapid increase in prices of real estate make some business owners do not work, they use their money to invest real estate , I think it is a big error. I think the most important things in current China is not GDP, I think the most important things in the current China is Employment Rate . If business owners use their money to invest in real estate, that means more worker will lost their job.
And, many reporter said in china, most of people can not support the price of real estate . So who are buying and help to rising the price of real estate.When the price of real estate rising 30% in 3 months, the price of chummage drop down 20% ~ 30% too ,Why the strange thing happened in the same time? A paper reported that one personal buy 34 house in 2 months , he can use a low loan rate get many money, and in 3 months, he got 30% profit , there called “investor” , these people not only get profit from difference of prices , when they buy a house , they rental the house in the market, but many worker can not find a job, so one hand there are many house push into the market , but in the other hand , lower people need these house.
I think there are many people in china need a house, but the price of real estate had make a family must use their 70% income to support the loan more than 30 years , it is really make many people FEAR.
Last month, there are 100,000,000,000$ unexplained funds come in china, I really warry about the store of “South-East Asian crisis” or the story of “Vietnam” happened in China.In last 6 months, there are 6,800,000,000,000 loan been put in the market , this is a record in china , if these money can not been use Stimulate factory begin working , but let factory closed and “invest ” real estate , that will create CRISIS.
I had to say, I am fear , for a long time in recent 3 months.
No time, just write a short note, hope somebody can read it and hope china have a good future.
Tags:
China, loan, real estate
December 28th, 2009 at 9:52 pm
[...] six months ago, I wrote a listing: I am fear , I reported the price of real estate department rising craze, Now, Six months later, the price [...]