Chinese home prices in August rose the most in more than six years, indicating local government efforts to avert a housing bubble have failed. Average new-home prices in the 70 cities rose 1.2% in August from July, the biggest increase since January 2010, while the value of home sales jumped 33% last month from a year earlier. At the same time, prices in Tier 1 cities, soared 3.5%, the most on record.
Still, in ongoing efforts to limit speculation in China’s latest housing bubble, cities such as Hangzhou have phased in ownership rules like banning those born outside the city from owning more than one property. Alas, squeezing demand represents a misguided way to tame a bubble, because if anything it leads to bursts of buying, sending prices soaring, followed by just as sharp plunges as the greater fools panic and rush to offload, forcing the initial rule to be undone, resetting the cycle… something which last happened in China in 2013 and is taking place again now.
Nowhere was this seen better than on a surveillance camera recording which captured China’s sheer housing bubble lunacy in its shocking raw intensity.
As People’s Daily reports, a surveillance camera – and the resulting viral video – caught the moment new real estate in east Hangzhou opened for sale on September 24. The resulting spree was prompted by the abovementioned new restrictions launched on Monday, which prevents people born outside Hangzhou from buying more than one property. What is mind-boggling is that despite one of the buying lunatics caught in the stampede literally tearing down the entrance door, all the properties sold out in a matter of hours.
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