China's thin margin for error in property policies

[StingRoy]

Actually it seems like an Asian culture thing to have keep properties as investments (Is this the same in India?). I know Singapore, HK, Taiwan etc property investments are a non stop topic day in and day out.

It unfortunately is. There are very similar market dynamics driving the housing sector. I believe it is a part of every developing economy and the staggering ROI.
But I am surprised at Singapore in your list. I thought it had a relatively stable housing sector because of the govt involvement in providing housing to all its residents.

 

[Chinese-Dragon]

Actually it seems like an Asian culture thing to have keep properties as investments (Is this the same in India?). I know Singapore, HK, Taiwan etc property investments are a non stop topic day in and day out.

Oh yes, that is so true.

Most properties are bought with cash, legal framework dictates that investors pay a 40% cash deposit and self stay pays 20%. Not sure what heavy loan is this in reference too?

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Exactly. And in hindsight, those high deposit requirements probably saved us from a hard landing in the property market.

Same story with the high reserve requirements for banks. Stability is important, even if we lose out on some short-term profit.

 

[Anonymous user]

It unfortunately is. There are very similar market dynamics driving the housing sector. I believe it is a part of every developing economy and the staggering ROI.
But I am surprised at Singapore in your list. I thought it had a relatively stable housing sector because of the govt involvement in providing housing to all its residents.

Singapore private property market has picked up quite steeply actually, recently the government put in many policies to reduce the property prices. Now foreigners buying property here have to pay 13% stamp duty as opposed to 3 % and locals who buy more than 2 properties have to pay extra 3% stamp duty. The private property market drives speculation on the government housing too. Property craze is still a strongly rooted fundamental am afraid, I am one of them