DESPITE a multitude of measures, many of them considered decisive and effective, taken by the central government to curb wild property prices, the overheating Chinese home market shows few signs of cooling-off.
Property developers everywhere are competing to break records for the highest land-bidding prices, hence, we see a series of “kings of the land,” referring to lots acquired at the highest bid.
What’s more, the fever for land acquisition is spreading from the major cities, mostly coastal ones, to medium and small cities.
The masses are puzzled.
On the one hand, the authorities spare no efforts to rein in soaring prices. The population, trusting the government, had high hopes that it would bring down the prices in a swoop. Premier Wen Jiabao has several times expressed determination to achieve this objective. On the other hand, developers have never shown a shred of willingness to cave in, and by pushing the prices so high they are protesting their commanding edge.
As a result, the longer people wait, the higher the prices. Frustrated people are even beginning to doubt that authorities have silver bullets, and scrambling to buy before prices rise further. This is a vicious cycle, making it more difficult to control prices.