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Q: Do these could happen in your country?
you know,now in china some cities the Home prices decline, but the early homebuyers protest the price down ,i wonder wherther the same thing could happen in foreign country ?
It has been in the news lately that the real estate market is slowing down, slowly changing from a sellers market to a buyer's one. Take my city. 5 years ago you could buy an apartment here for 2,000 Rmb a square meter, today is closer to 7,000 Rmb.
Of course those that invested will make noise, butb they have already more than double their money. But there is nothing they can do, just like there is nothing you can do abroad short of venting some steam.
Housing prices in some parts of the US have declined by up to 50%. One of my aunts bought a $400,000 house that had been foreclosed for less than 200k. Side effect of the housing bubble bursting.
It's mainly because in US or in Europe, when you buy a property, you consider to live in it and make it your place until your death (providing you can pay back your mortgage).
In China, people will consider buying a property as a short term investment (to sell the property 5-10 years afterwards) or a long term investment (to rent it and increase the rent almost anually). Living in the apartment is secondary.
People may complain about it, because the value of their investment is not what they expect. But also, many companies (especially state-run companies) will buy properties and rent them as a means to get extra benefits for the company. So, in that case too, if the value of their investment or the rental fees they charge declines, so it's their revenues.
