Accounting and real estate prices in Shanghai

The skyrocketing real estate prices in Shanghai

In the big cities of China, which amounts to 70 approximately, the real estate price increased abruptly last September according to accounting firm SJ Grand. We recorded an increase of 7,1 % on average over one year, according to the report based on the national Office of statistics. This increase is the most important since the year 2011. So, in the regions of the South of the country as Shenzhen and the Canton, we noted an increase of 20 % whereas in the capital Beijing it is 16 %. The increase of the city of Shanghai, as for her borders the 17 %.

Since the central bank and the popular Bank of China continued their thrown in the property loan, the prices of the real estate went up of an arrow. The analysts and the accounting firms nevertheless hoped in more restrictive measures to escape the real estate bubble. The current credits made a jump of 20,9 % at the end of September. The reason of this banking policy is doubtless the fear of a slowing down of the Chinese economy. That is why the government adopts the stable growth of the real estate sector.

A GDP lower than expected

In fact, current Prime Minister of Beijing did not see fit to set of measures to slow down this price. Nevertheless, former Prime Minister has already begun a campaign to reduce the speculation in the real estate. Concerning the risk of increase of the GDP(GROSS DOMESTIC PRODUCT), the Chinese authorities and accounting do not want a rate lower than 7,5 % for year 2013. The job creation depends on this rate according to the government of Beijing. Nevertheless, it did not produce the expected effect. The GDP(GROSS DOMESTIC PRODUCT) of China knew an increase of 7,8 % during the third quarter of the year instead of a deceleration. The situation of September shows that the measures taken to dyke the fit and at the same time continue the dynamism of the country are ineffective.

Business tax to the owners

Another measure imposes business taxes to the owners of real estate new from 0,6 % of its purchase price. This program is already applied in Shanghai and to Chongqing, and can concern also Beijing and the other big cities. According to the accounting agency Xin Hua, the government of Beijing repeats that the control of real estate market is more and more strengthened and underlines that there will be an implementation of a system of long-term control for this business tax.

http://www.ibtimes.com/chinas-real-estate-accounted-dangerously-high-proportion-its-household-wealth-2013-1553421
http://www.forbes.com/fdc/welcome_mjx.shtml