Two days of regulation effect of Canada and China property market

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Two days of regulation effect of Canada and China property market

In the face of the real estate market bubble, governments of all countries will introduce real estate control policies. However, China’s real estate regulation and control has frequently been used by the government and its momentum has been higher than in one round. As a result, the higher the price controls, the more severe the regulation of real estate speculation. However, in foreign countries, real estate regulation is gently lifted, hands to knife, immediate results. For example, the Canadian real estate market regulates.

For example, on May 21st, a report released by the E-House Real Estate Research Institute showed that in April, the number of second-hand housing transactions in 20 cities in China was about 120,000, an increase of 11% compared with the previous month and a decrease of 18% year-on-year; In April, the cumulative turnover of second-hand housing in 20 cities fell 28% year-on-year. In April, the number of second-hand housing transactions in four first-tier cities was approximately 42,000, a decrease of 4% from the previous quarter and a year-on-year decrease of 23%. The cumulative total at the beginning of the year decreased by 28% year-on-year, a decrease of 1.9% from January to March. The transaction volume of second-hand housing in April was lower by 35% to 15% compared with the average levels in 2016 and 2017. Currently, the downward trend of real estate in these cities is still in progress. However, according to the statistics of the National Bureau of Statistics, the turnover of second-hand housing in these cities is declining, and prices are still rising, or the rate of decline is only a few tenths, and there is almost no decline. If based on 2015, the price of second-hand housing in Shenzhen and Beijing has increased by nearly 50%. Because housing prices in many cities are still rising, the wave of hype over the country is still repeating itself. Hainan real estate, Dandong real estate, Chengdu real estate and so on. This is the effect of the domestic real estate market regulation policy.

The results of the regulation of the Canadian real estate market over the past year have been quite different from those of China. The effect is totally different. From the data recently released, Canadian second-hand housing sales and house prices continued to fall in April, and the Canadian real estate market began to cool down. BMO pointed out that seasonally adjusted statistics showed that sales of second-hand housing fell by 2.9% in April from March, making a cumulative fall of 13.9% in 12 months. Compared with the highest record before the implementation of the new mortgage review in December last year, sales in April even fell sharply by 21.7%, which is the worst April in housing transactions since 2011. The average price of second-hand housing in the country fell to $495,000, a decrease of 11.3% from April last year.

In other words, after the introduction of Canada's real estate control policies, not only the total sales of housing fell, but also with the overall decline in housing sales, housing prices have also fallen.Not that China's sales of homes have fallen, and prices have not fallen. Conversely, many cities are still rising. Market rules completely fail in China. It can be said that if the real estate market regulation policy introduced only to reduce the sales of housing, rather than let prices fall, then the real estate market regulation policy is certainly questionable.

It can be said that China's real estate control policies are massive. There are many real estate control policies that are promulgated. There are all kinds of administrative tools such as restrictions on purchases, sales restrictions, limit prices, limited loans, and restrictions on commercial and residential use. Its pole, but the iron punches on the cotton, did not reflect. In Canada, Vancouver and Toronto only levy a 15% foreign purchaser tax on foreign purchasers. It is only that the Central Bank of Canada increases the pressure on home buyers to purchase homes. Since the Central Bank of Canada announced in May 2017 the measures to apply for stress tests on the economic affordability of home buyers for home loans, the central bank’s interest rate for the mortgage stress test has risen from 4.64% to the current level of 5.34% in the past year. In other words, the Canadian real estate market regulation policy is so simple, so that the Canadian real estate market immediately adjusted. Moreover, the price of the Canadian real estate market has fallen and the real estate market bubble has gradually squeezed out. This has not caused economic shocks and financial market crisis.

The same is true of the real estate market regulation, the same is to squeeze out the real estate market bubble, but Canada's simple real estate market regulation and control policy, you can scratch up, the housing market sales and prices immediately appear to control. China's real estate regulation and control is the government racking their brains, what is the history of the most stringent real estate control policies, the result is the introduction of real estate control policies, the more the price rise, the more real estate speculation, why not?

The most recent fundamental reason is that the real estate market regulation and market rules followed by real estate in Canada can capture the reasons for the rapid rise in real estate market prices. China’s real estate regulation is originally a wave of real estate speculation driven by bank credit, and it hopes to control it in an administrative manner. As a result, the iron fist hits cotton, not only failing to reflect, but also contributing to fueling the oil prices. It is the rise of the control policy. What is more important is that officials of many government functional departments also believe that their own methods are smart. Their introduction of policies can both curb rising housing prices and stabilize housing prices. Market rules or market laws are useless in China. butIn fact, the price of the real estate market is spreading frantically from one city to another. It will surely make China's real estate market more and more dangerous. Stabilizing house prices can only become a joke, or local governments manipulate GDP data from the past to the current manipulation of house prices. Change data. This is the regulation and effect of real estate with Chinese characteristics.


Two days of regulation effect of Canada and China property market