Real estate market crashezzzzzzzzz
The economy expanded by 12 percent per year since 1990, house prices rose to 55 times the level of average annual disposable salaries, and more skyscrapers were built in Shanghai than in New York. A 100-square-metre new apartment costs an average of 914,000 yuan ($112,800 US), according to the Shanghai Real Estate Exchange.
The presenters on CCTV 9 have been possibly wetting themselves with anticipation that the "bubble will burst" on real estate prices, and now their bladders may be fully unleashed onto the world, as that bubble is gone baby.
In order to stop the rise of house prices, the government introduced their favourite friend -- "measures" -- the best of which was probably allowing only real residents to buy, rather than companies who stockpiled apartments for future sales.
One way they did this was to limit the number of mortgages people can have. They also ordered local authorities to apply a 5.5 per cent tax on the sales price starting last June. Home sales this year reached 26.8 million square meters by the end of last month -- less than two-thirds of the 34.9 million square meters sold in 2004. The index on second-hand houses is down 0.9 percent. This is really boring news.
The picture above may not be about real estate. But look! A dog having sex with a cat! Look!!!
Also on Shanghaiist:
Real estate agents Arsonists might escape death penalty
There's something happening here ...
How to spend $15,000 in Shanghai ... every month
Shanghai: The world's largest Erector Set
