Thursday, March 25, 2010

One way to stop the real estate bubble in China

From China Daily -

BEIJING - The Ministry of Land and Resources has ordered a temporary ban on the sale of land for housing in a renewed measure to ease soaring real estate prices.

Yun Xiaosu, vice-minister of land and resources, said local authorities should not sell land for residential purposes until this year's housing land supply plan is released in early April.


Stop all private transactions and create scarcity value for land. Yes, this will work. Sort of like rationing or placing restrictions on how much you can buy. We have seen this story before. However, if you want to top a bubble you have make it expensive to speculate.

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