Tycoon Explains Why 'Collapsing' Beijing Prices Are Fake And The Result Of Government Manipulation

Ren ZhiqiangRen Zhiqiang

It turns out that Beijing property prices may not be actually collapsing as reported a few days back. A Chinese tycoon has accused the government of manipulating the market in order to give the appearance of falling prices — they want to show that the market is ‘cooling’, when in fact it remains red hot.The chairman of Hua Yuan Real Estate, Ren Zhiqiang has accused Beijing property regulators of twisting the way market data is release in order to make the ‘average price’ come down.

China Daily:

“China Central Television reported a piece of good news this morning, saying Beijing’s house prices have fallen 8,000 yuan per sq m,” Ren wrote in his micro blog on Tuesday.

“It appeared that the new policies were making significant progress, but they didn’t know that Beijing has suspended the issuing of sale permits for high-end properties. Without them, the average price is easily going down.”

The authorities have obviously denied the charges, saying that some companies with high end properties have simply failed to qualify for permits. Still, whatever the exact reason for their delay, it explains the apparent price drop for ‘average selling prices’ in Beijing. Zhang Dawei of property research firm Centaline China describes the current Beijing prices as ‘bei jiangjia, or being artificially dragged down’.

(Tip via Sinocism)

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