Matthew Zhou, a 30-year-old information technology engineer at a state-controlled bank bought a two bedroom apartment instead of investing in the stocks and while house prices continue to rise. He and his wife plan to leave the home empty while they live with her parents and decide what the next move will be for the financial future.
In China, residential prices have defied a more than three-year-long government campaign to reign them in and among the forces crippling the efforts to control the expanding housing bubble. In fact, new house prices in major cities such as Shanghai and Beijing rose more than 10 percent in July alone from a year previously.
Yao Wei, a China economist at Societe Generale SA, said in an interview in Hong Kong that prices have been rising because China doesn't have developed financial markets to handle such inflation. the Shanghai Stock Exchange Property Index, a gauge that track property shares and values, rose .4 percent at the close last Friday, while the benchmark Shanghai Composite Index fell .2 percent.
The economy in China expanded less than 8 percent for the past five quarters, the first time it had happened since the early 1990s. The last attempt to quell residential price increases was in March, when former Premier Wen Jiabao stepped up a campaign to cool the real-estate market. However, he has since given his reins to current Premier Li Keqiang.
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Mortgage Comparison Site (http://xn--hekm0a443zu0mcl0bv21b.com) provides basic knowledge and facts about owning a mortgage in China. As a blog, it evaluates the different kinds of mortgage choices and recommends several plans for different needs. If you're looking to invest in a home with any of China's major banks, visit the website to learn more.
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