China coming down hard to control sky high property prices

There was a report yesterday that a property developer is slashing its prices by 15%. This must be the result of pressure from the Chinese govt to bring down the prices. Wonder if this developer is private or govt owned. If it is a private developer then it is wrong for the Chinese govt to make them slash prices. But maybe they can do it in an authoritarian state. But this will interfere adversely with market forces and market pricing. And developers will not be able to make more grotesque profits. The Chinese govt must understand that private developers are only there to make profits. Making them slashed prices is bad. But if this is a state developer, then there are reasons to do so as the govt has to manage the housing prices to make them affordable to the people. The Chinese govt will have to tussle between making housing affordable or pricing as high as possible as long as the buyers can afford to pay. The latter is obviously good as they will have more money to raise their own pay unless they are contented to be paid lesser than the private sector. At the moment it seems that they are willing to suppress the market forces and sacrifice their own pay for the good of the people. Who says authoritarian govt is bad? When they know what is good for the people and act accordingly, even a dictatorship is good. But when the govt acts against the interest of the people, even western democracy is bad.


Wally Buffet said...

China property prices and its effect on inflation is their greatest bugbear. If they do not rein in the excesses the whole country will go down the tube and Mr. Bean please don't say I am China bashing ok? Hehe.

The Chinese have what is now known as the two "C"s, Communist Capitalism.

Yup, some form of authoritarian government is good because most people are naughty children and some nations are stupid PIIGS. Spend more than you earn or have and it's the fastest road to ruin.

Anonymous said...

Maybe when the people in authority in SIN regain their consciences, the state will photostat the Chinese Authority's way of caring for the people as well. Who knows.

Btw, me does not think the bullying can goes on indefinitely. All sensible people know that there is always a breaking point after the last tolerance level. And talents are never that foolish to cause anarchy that will be great danger to themselves.


Anonymous said...

In the face of greed, conscience is but a hindrance to more greed.

It is too late to turn back for them.

Anonymous said...

May i make a point here that is has little to do with this post.

Singaporeans have been hoping and askings for leaders to be honest, transparent, caring and other positive attributes. This is always after they have chosen their leaders.

Me thinks that there needs a change in the way we go about selecting or rather electing our leaders and the strategy that the people must adopt.

For strategy, got to say here that it's not really a great one but one that is almost essential. And that is the people should not put all their eggs in one basket. And that is to vote for all the candidates from one party. Should i say that it is commonsense to do so as there had been too many regimes that proved to have gone waywards when given too much power.

There is therefore a need to have oppositions in any regime for balance. There maybe benign regimes but too few for one to name or recall.

Citizens will always want to elected leaders that are good and caring, invariably we want benign leadership. But how are we to know which candidate fulfills the criterias ? Put in the safety measures first rather than wish for goodness to come.

Let's put some thoughts into the coming election and ask ourselves if we should change our tacts.


Anonymous said...

Dear readers;

'Citizens will always want to elected leaders that are good and caring.......' should read 'Citizens will always want to have elected leaders to be good and caring.....

My apology !