Real Estate Information Network (http://www.9999.cd/) reported ten reasons why housing prices will surely rise in the second half of 09.
1. The recovery of the real estate market is what everyone hopes for.
Any participant in the real estate market wants China's real estate industry to develop healthily. Whether someone is bearish or bullish, they all want China's real estate market to do well. A bleak real estate market is naturally not what people want to see. The reason for the factional disputes is that they have different expectations for the future of the real estate market. Some are relatively conservative, while others are blindly optimistic. Some have foresight, while others have a short-sighted view.
Therefore, after the cold winter, everyone expects the real estate market to rationally return and hopes it can recover. However, there are discrepancies regarding whether the timing is ripe, which also causes fluctuations in housing price increases and decreases.
2. The overall environment has removed the material and spiritual shackles for developers.
3. Favorable policies have also stimulated the release of basic needs among homebuyers.
4. Developers' retaliatory rebound
Undoubtedly, housing prices are influenced by supply and demand, but to a certain extent, they are also the result of psychological games between buyers and developers. The suppressed emotions of developers need to be released. When the real estate market just started to improve, what they saw was how helpless they were in the past year. They, who once thought themselves invincible, carefully planned promotional strategies just to sell their houses without getting stuck with them. Despite this, they still couldn't get the understanding of homebuyers.
5. Speculators and property investment groups make a comeback
Seeing the trend of rising housing prices, speculators and property investment groups naturally wouldn't miss such an opportunity. Under the expectation of inflation, properties are naturally the best products for preserving and increasing value. They rushed into the market to grab properties. Especially since China's real estate market is relatively stable compared to other countries, it also attracted some foreign capital. On one hand, this makes developers confident about raising prices, but on the other hand, it also makes many potential buyers hesitate. In fact, the bubble rises again, pushing the real estate market into another abyss as it gradually warms up.
6. The fact that land prices push up housing prices cannot be avoided
7. Developers must raise prices significantly before new policies are introduced
8. Buyers' psychology of buying when prices rise rather than fall still plays a role
9. Local governments still have many "Xu Zongheng"
Although some local governments now seem to want to distance themselves from developers, we cannot deny that some government departments indeed have清醒recognition. However, there are always some government departments and former Shenzhen mayor Xu Zongheng who say one thing and do another. While they claim to control the rising trend of housing prices to calm the public, they secretly support high housing prices. With such backing, it's naturally hard for housing prices to drop. Therefore, as long as the interest relationship between local governments and developers isn't strictly investigated, the possibility of housing price increases remains significant.
10. The last glow before a housing price decline