Shanghai Property markets continue to climb up, and a new kind of speculator has emerged
Shanghai’s Real Estate Market climbed another 3.9% in October after briefly slowing down in September this year.
Real Estate investment in the city is up 19% for the year and the total transaction volume is up nearly 50% for the year.
Prices also rose 56% year on year and news about an interest hike have not slowed the run on shanghainese properties yet.
With prices escalating into the clouds and new loan rules tied together with the profit taxes introduced in 2005 it’s become a lot harder for speculators to flip properties for profit in the city.
But, as always, Shanghai’s property people found a way. Several people are getting on the boat to place downpayments on hot new luxury properties like the Bund Summit (or Bound on the Bund now).
I read on sh.focus.cn that speculators make the downpayment, pay the broker and wait for somebody to take the bill of their hands for an “extra fee” of 500k to even 1.2 Million Rmb in one case.
The bet seems to pay off, 43 property transactions and counting for the 60 thousand Renminbi per square meter luxury development on Shanghai’s Bund.
Stay Tuned
1
aquaspace
Tuesday, January 26th, 2010 at 7:31 pm
The rich are become more rich.