"Even as its cooling efforts in the property market show signs of paying off, China is rolling out further measures to rein in the still-growing sector, taking aim this time at developers who snap up and hoard vacant parcels. ... [D]evelopers and investment funds from overseas have ... [bought] real estate [to] hang onto it, sometimes for years before building on it. ... The tax, of 20% of the land's purchase price, kicks in after a year; after two years, local governments can seize the land without compensating the developer. ... If the measure works as planned, it could push more supply into the residential market", WSJ, 9 January 2008.
In effect, China increased developers' interest rate by 20%, as opposed to increasing all interest rates. I expect this will cause Chinese land prices to fall.
In effect, China increased developers' interest rate by 20%, as opposed to increasing all interest rates. I expect this will cause Chinese land prices to fall.
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