China to Allow Control of Home Prices
Nov. 9 (Bloomberg) -- China’s government departments are drafting rules that will allow local authorities to control gains in home prices, the official business newspaper Securities Times reported today, citing people it didn’t identify.I really can't wait to watch this.
Provincial regulators may be allowed to limit the selling prices of homes and cap profits for developers if prices gain sharply, the Shenzhen-based newspaper said.
China’s western city of Chongqing is ready to introduce a property tax, the Chongqing Morning Post reported yesterday, citing the local housing bureau.
We'll see if increasing the holding costs doesn't just drive the investors to flip more aggressively to cover this new expense. Or, since this is happening one region at a time, if the tax is egregious enough, will investors begin to sell out of this area first? And, who are they going to sell to without taking a loss?