South Forest Hill Residences location.A collective bubble in the global property market?After a series of regulation and control since the second half of last year,the trend of house prices in China has been divided.Please Visit:South Forest Hill Residences location to Get Your VVIP Registration Today!
Not only in China,over the past few years,house prices in South Korea,Canada,Australia and other countries have generally risen,and the global property market has collectively ushered in a bubble.
It was reported yesterday that the South Korean government has issued the strictest regulation and control policy on the property market in history,including raising the down payment ratio of loan buyers from 30%to 40%.At the same time,in hot areas such as Seoul,the loan limit is also restricted.the amount of repayment of property buyers cannot exceed 50%of their annual income,compared with 60%previously stipulated.
According to South Korean media reports,housing prices in some parts of Seoul soared by 600000 yuan in one night last October,and even 400 people in Gangnam district of Seoul were bidding for a flat,a sign of the popularity of the South Korean property market.
In recent years,Chinese money has poured into South Korea to speculate in real estate.In Jeju Island of South Korea,Gangnam District of Seoul and other areas,there are a large number of Chinese investors.
The Canadian property market,which is also popular with Chinese investors,has also seen a serious bubble.According to foreign media reports,after a round of sharp rise,Canadian house prices have exceeded those in the United States by 51%,while in the same period last year,Canadian house prices were only 36%higher than those in the United States.According to a survey by Manulife Bank of Canada,the average monthly payment of Canadian house slaves is$1000,and if the monthly housing burden is increased by another$100,most house slaves will not be able to afford it.
According to the international financial times,the average debt of Canadian households accounts for more than 165%of disposable income,which is higher than the debt ratio of the United States before the subprime mortgage crisis.
According to CCTV Finance reported on June 6,the Toronto property market”flash crash”,the greater Toronto area property market volume and prices fell in May,the average selling price of all types of housing is about 4.36 million yuan,down 6.2%from April,or about 300000 yuan.
The situation in Australia is similar to that in Canada,where the red-hot property market shows signs of cooling.
House prices across Australia generally fell in May,down 1.1%from April and up 8.3%from a year earlier.In terms of specific cities,Hobart had the biggest month-on-month decline,with house prices down nearly 5%from April.House prices fell 1.3 per cent month-on-month in Sydney and 1.7 per cent in Melbourne.
According to data released by CoreLogic,Australian house prices rose by an average of 10.9%in 2016,the biggest increase since 2009.Willem Buiter,chief economist at Citi,pointed out that Australia has a”startling real estate bubble”that,if mishandled,could trigger a cyclical recession.
According to the analysis,60%of Sydney’s property market is driven by investors,so Sydney is more likely to be exposed to downside house prices than other cities.Market data show that house prices in Sydney have risen sharply over the past five years,with a cumulative increase of 75%.
In order to limit overseas property speculation,the Australian government has introduced a series of policies,including increasing loan restrictions for foreigners and doubling the stamp duty surcharge for foreign buyers.
Tim,head of CoreLogic research,said the downturn in house prices in May had seasonal factors,the Australian property market would not be in danger of collapse,and long-term strong growth could still be expected.
Some experts believe that at home,bank credit has continued to tighten,with M2 growth falling to single digits for the first time in May;internationally,the Federal Reserve has announced interest rate increases and will start shrinking its balance sheet this year.A series of signs of capital tightening suggest that the world may start the era of”de-bubble”of the property market at the same time.
Chen Sijin,a financial columnist and senior financial risk management consultant,pointed out in the article”the global housing market ushered in an era of de-bubble”that as the Federal Reserve raised interest rates and”shrank the table”more than expected,the private islands of the United States,Canada,Chile,Italy,Greece and Panama also saw a sell-off of luxury homes,and almost the global housing market,which contains bubbles,began to show signs of decline.
The governments of Britain and Canada are also expected to tighten the currency by raising interest rates,taking the initiative to prick the real estate bubble in order to avoid an economic crisis in the future.