This piece of news is extracted from the businesstimes.
July 19, 2010, 8.40 am (Singapore time)
China to maintain property tightening
BEIJING - China will maintain its tightening campaign to cool real estate prices, the Minister of Housing and Urban-Rural Development said in remarks published on Monday, while urging local governments to build more affordable housing.
As Chinese economic growth slowed in the second quarter, some analysts and investors expected Beijing might loosen its efforts to temper the real estate sector, which accounts for more than 10 per cent of gross domestic product.
But Jiang Weixin, the housing minister, told a meeting of more than 70 mayors that the risks of doing so were too high.
'Once the policy is relaxed, property prices will rebound strongly. Our macro control efforts will then fail overnight, and the government will also lose the trust of its people,' he was quoted as saying by the China Business News.
China's property prices fell 0.1 per cent in June from May, the first monthly decline since February 2009, after Beijing rolled out a slew of measures in April, including higher required down payments and mortgage rates, to curb rapid housing price rises.
Mr Jiang urged the officials to speed up efforts to meet the country's target of building 5.8 million units of affordable housing this year.
His ministry will make a two-week check on the progress of construction beginning on Aug 10, he told the mayors. -- REUTERS
Now for my comments.
Prices of the properties in China as dropped 0.1% in June. It indicates that we have progressed from Phase 1 to Phase 1A. The dropped in property prices in China means that the other countries in Asia will follow suit. It may take a few months or even a few quarters for the Singapore property prices to go down too.
Prices will go down, but when? I do not know. Meanwhile, just need to continue to build our war chest with $$$ ammunition so that we can strike when the price is right.
Disclaimer: The above comments are personal comments. They should not be used to decide if one should buy or should sell their properties.