Losers riot over falling Chinese house prices

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Anyone that tracked the last downturn in Chinese property in 2011 will recall that riots broke out as developers discounted. It’s begun again. From MarketWatch:

In one case, scores of property owners surrounded a Shanghai sales office of Greentown China Holdings Ltd. 3900, +7.19% GTWCF, -33.19%  to protest the developer’s 25% cut to prices within a five-day period, according to a report on the NetEase NTES, +2.06%  news portal site 163.com.

Protesters held banners with slogans such as “You cheated us!”…

…In the eastern city of Jinan, banner-carrying owners blocked a street to protest another 25% price cut for a local housing development, this one conducted over the space of two weeks, according to the local-government-run Life Daily newspaper.

The protesters clashed with a group of counter-protestors suspected to have been hired by local developers, injuring some of the demonstrators…

It’s going to get worse!

Comments

  1. We’ve had marxist, and fascist revolutions, crony capitalist people’s armies next?

    This army was brought to you by Meriton, Domain and The Block.

    • Don’t joke.

      If things go south down under and ‘sure bets’ start to look wobbly we will get industrial deafness from the squealing ‘we wuz robbed’.

      Stock up on shares in noise cancelling headphone manufacturers but don’t over do it as we will be told it is a national emergency and you may be asked to hand over even more cash than now to ease the suffering of the greedy ‘capital gain’ roaders.

      • That’s almost a given isn’t it.

        I’d rather laugh than cry about it if I can.

        Who knows how far the scum of this country will go. From past experience it looks like until every stone is bled dry. 1.5-2trillion, maybe more in public debt.

        They’ll well and truly justify it in their minds too and abuse those who disagree.

        And anyone who is right, like us MB’ers are just defenceless babies.

      • that military unit

        Traditional Maoist stimulus – a return to revolutionary fundamentals.

      • Failed Baby BoomerMEMBER

        When I worked in China I was surprised to see a few demonstations and near-riots. They seemd to occur more often in the villages – the rural folk are really fiesty. Usually they were over some land deal or the other where the villagers felt cheated, but occasionally over other matters as well. One riot was over lack of traffic controls after a village child was killed trying to cross the road.

      • >Last year there thousands of ‘reportable incidents’, few make it to western media.

        In a fifth of the entire planet….hold your horses.

      • They had an anti Japanese riot a year or two ago. Some people who had Jap cars had them destroyed. 😀

        There was an interesting story on Foreign Correspondent about how a lot of young Japs are keen to join the military now with their eyes on taking on China.

    • will the chinese riot here too when reality kicks in, as they are being sold the same fantasy here as well, but at least what they buy here has painted walls and running water

      • Hopefully they will be deported…

        We need to remove the threat of fifth columnists before the war with China begins…

        Jacqui Lambie told me so…. 😆

        🙄

      • I’ll do my crash dance in front of them… Just as they did their illegal outbidding dance at too many auctions.

      • It will never happen, because they were paying with money that they never worked for, was never theirs and never existed; their new props can collapse to $1 and they’ll still be laughing.

  2. All these units, millions of units, just empty concrete shells in dirty filthy paddocks, most never traded before, so who knows what they are worth and if there would really be any demand for them.

  3. The protesters clashed with a group of counter-protestors suspected to have been hired by local developers,

    That I’d love to see happen here. Specufestors turning on each other and getting violent.

    In fact you could say the hoo hah over the budget is just that to a large degree.

    • Ironically it is possible there still is – in the sense that many of these so-called housing units are described as unliveable concrete shells, and therefore are not adding to housing supply at all.

  4. Rent Seeking Missile

    Just set a floor price for residential property and outlaw any sales below this price.

    Problem solved, financial system stable, middle classes happy, everyone can go home.

    Don’t think it won’t happen here!

      • Why not? This is precisely what was done in places like Spain and parts of the US where the government and/or banks are sitting on gigantic reams of ‘shadow inventory’ so as to prevent a wholesale collapse. The dreams of buying a price collapse of 50% in this country will not come true precisely because this tactic will be used here.

  5. reusachtigeMEMBER

    See, I hope our government learns from this that house prices must always be forced up, and by the maximum possible!

    • Now that’s just the wrong attitude creeping in. Maximum possible? There is no maximum, house prices is one of the practical items where infinity is the limit.

      • There are numbers so large that there are not enough particles in the universe to be able to write the zeroes. That might represent a limit.

      • Before their paper supplier stopped delivering, Zimbabwe’s inflation rate was generally measured in scientific notation (79.6 billion percent per month, so annual rates were truly large).

        We can of course sustainably achieve this with housing, as it’s not part of CPI, so it doesn’t matter how much hot money flows into it.

        Those who lever-up and buy houses will be rich from the capital gains, while everyone else will be poor as their incomes decline.

        It’s inevitable. Get with the program, buy houses, and get rich!

  6. I am sure Chinese Sydney Weekly is all too eager to get the Sydney Property Show they have organized to be behind them before the news breaks out.

  7. Investors are always happy to screw over future generations and widen the wealth gap. Not so happy when they realise that they screwed themselves over and find themselves on the wrong side of that wealth gap.

  8. Shame they couldn’t have started protesting about 10 years ago. But I guess it didn’t affect them so who cares right.

    Lefties lose their $2.5 public house and protest outside the auction. Wankers.

    http://smh.domain.com.au/real-estate-news/second-millers-point-house-sells-for-256-million-20140826-108jcw.html

    How much would it cost to renovate it? $2m?

    http://www.domain.com.au/property/for-sale/house/nsw/millers-point/?adid=2011319939

    $4m for that so you can be a charddy wanker.

    • I’m hoping the NEW Govt will reverse their decision and allow the remaining Miller Point residents to stay – would make interesting neighbors for the residents of the two houses that have been sold!!!!

  9. Since they’ve never experienced such a market crash in their country, I expect the Chinese will be rather unprepared for it. At least Western countries have seen crashes before (although you wouldn’t think so if you read the MSM).

    It’s going to be truly epic, as will be the flow-on effects to Australia. What did someone (Grantham I think) say about Australia being a CDO squared?

  10. Can’t help but think this headline in 12 months…

    “Boomers riot over falling house prices”

    Will be an interesting time for ‘Straya