Points:
The property market in China is a bubble - Cause: Chinese government doesn't release land policy, leading to a limited land, but with a great demand of propety.So producers can expliot and influence market.
- but: Investors will refuse to sell if the price of their property does not give them a profit.
- but: The problem is if the profits they earned is too high. If they earn less profits (do not mean losses), the price will be lower.
- but: They need to cover the estate agents and lawyers fees, and taxes, so they must sell for a higher price.
- because: Increasing property prices are fuelling inflation
- because: The Government will try to control inflation by reducing property prices
- because: Increasing property prices are fuelling inflation
- because: Property prices are rising too quickly
- Cause: Some investors, who are not end users, try to make profits by rapid property sales.
- Cause: Land in urban area is mainly controlled by a few developers.
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