Yep, u take the point~!
In China few years ago, some buyers bought the house with much lower price. But before sell it there'r no any real value, i mean it's just the price will be floating anytime not the cash, and they(many house owners including me) need other ppl to take the high house price. But the problem in China is, Is other rich ppl and young ppl stop to buy new house with high price?
No i think they will continue buy house, if they didn't have enough money they can borrow thousands of money from CCP banks and continue boot China house price much higher, at the same time other goods & food price also growing here leads to domestic purchasing power is falling and RMB money is losing its value.
Due to recent years rising prices, 90% normal Chinese ppl believe the house/apartment is the only effective way to save their money, as far as possible to borrow money and throw it into China house market, it also boot the China house price rise up like the ROCKET GO OFF.
I have been there before 2008 China stock market crash. Through 2007-2008 most Chinese normal ppl believe can easily earning money from China stock market, many of them invest money into the stock market when SSE Composite Index reach 6000 point, then "BOOM" it drop to 2000 today still around 2300 point. And China government do nothing for these poor investors let them crying, China government just try hundreds of ways to block the hot money flowed out from China, then Wen and his teams found a good way: M2 and boot China house price up.
Well major China GDP came from housing exchange with high house price, China government need to hold 8% GDP growth (coz to improve 1.3billion Chinese ppl's living conditons need it) , now 2013 1st quarter China GDP growth 7.7%.