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In need of reality check
Updated: 2010-03-09 08:43
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In need of reality check
Real estate businesspeople should not mislead the public to continue to make profits even if they are CPPCC members, says an article in Huashang Morning Post. Excerpts:
A real estate developer has defended the skyrocketing housing prices at the CPPCC session and suggested Chinese people raise their concept about a house to the "level" of Westerners. Given his business background, he was not expected to say anything different. But he has no right to try to mislead the public by saying government supervision and control of housing prices were a deliberate attempt to reduce property developers' profit.
Most of the youths in the West who are not eager to buy a house do so because they have a sound social security system and an adequate supply of subsidized houses. The average global ratio of housing prices to income is between three and six times. But in many Chinese cities, they are 27 times.
Although real estate developers say they are losing money, they have enough room to maneuver to make exorbitant profits. Housing prices are getting crazier by the day, considering the affordability of the public. How on earth can the government be a blind and deaf bystander to this? And how can the market continue to prosper if it allows greedy investors to complete money-minting plans?
(China Daily 03/09/2010 page10)
