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Q: Is it true that the government plans to regulate house prices in Beijing next year?
I heard that they will introduce a cap for house prices within the third ring road, but not sure if this is accurate.
I have heard countless of rummors since coming to China. If I had paid attention to any, I would have gotten on a plane and returned home immediately. Some rummors with time tend to be true, many are just that, rummors with no base.
In my opinion, neither the central government nor the local government will place a cap on all new buildings constructed. Instead, they may force builders into the not so lucrative low end of the spectrum (price range) by requesteing a higher percentage of low income housing built in exchange for some tax consideration or any other such "incentive".
Right now, there is a new development planned on the South China Sea Cost line near BeiJai. Prebuilding phase sales are going at 2,000 Yuan per square meter. You can get into a 223 sq meters penthouse, 4 bedrooms and 3 baths, 2 balconies and facing the South China Sea for about 400,000 Yuan. If you do your homework, there are many places like this right now.
A friend of mine in Guangxi Province bought one at Pinggo also at 2,000 yuan per sq meter. Building is almost finish now, he has a penthouse at 220 sq. meters. He also got an offer to sell for 6,000 yuan per sq meter, TRIPLE HIS MONEY in 15 months. Can't beat that.
