My father told me that the properties in the Shanghai-leaded cities around the Yangtze River has already cooled down, when I called him yesterday. "Really?" I asked.
In my memory, the properties in those cities are in a rocketing growth since the beginning of 21st centuries. For example, in Nanjing, a city near Shanghai but more peaceful, the price for the new flat in the downtown has reached 9000 yuan, or US$1100, per square metres, while the average pay for a white-collar is around 2000 to 3000 yuan. It means he or she has to work three months ,without eating or drinking, to exchange for a square meter house.
My father's point is that the central government has already required the provincial ones to make the property price stable, to avoid the property bubble. One of the steps is to add the sales tax on the property sales. In Nanjing, the buyer of a new flat has to pay twice the price of tax, to say, 4 percent of the flat price instead of 2 percent, from June 1st; the selling of a second-hand flat has to afford the tax amount to 5.5% of the whole price, if the flat is only bought in two years. The new regulation discourages many dealers who are trying to make quick money via buying and selling in a short period, according to the report from CCTV.
A group named property price censorship is set up to slow down the price bubble. The standard for the growth speed of the price is to make it lower than the growth of Gross Domestic Product, the normal standard for a country's economy, or the growth of gross income of the people.
Then my point is that the growth is one of the important factors now, but also pay attention to the already-high base price. It is already quite terrible.