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Friday, March 24, 2017
Chan Kung: Property value preservation is a myth
ANBOUND

Many common people in China are now placing a lot of money in property. Concerning property price, I would like to point out that now China's urbanization rate is at the limit of what the country can bear, In the future the property price will be like tidal wave; when the tide comes, the price will soar but when the tide recedes, the price will fall greatly or in stagnation. Now the property market will not collapse, but that will happen in the future. When that happens, everything else will collapse, not just the property market. The "rise, regulate, rise, control" way of doing things can no longer be used, and other ways must be sought. If one says property is for value-preservation and value-addition, that is a myth. The economic environment and trend is the one that can really preserve the investment value. Even the most powerful government will have to be restricted by development logic. If the government is unable to do something, neither could the investors do it.

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