Wednesday, December 25, 2013

Policy logic and the market rules

In 2013 real estate regulation not to relax, but prices are operating outside the control of expectations.Different focus of experts tend to agree that the supply and demand relationship eventually played a decisive role,sch80 carbon steel Round tube suppliers and either positive or negative role in the regulation policy.

If Mr. Ren review as early as in 2012, he was also in the supply and demand prices soaring conclusion is deduced.Just, in the logic of ren, there are many factors that affect supply and demand.

Comprehensive ren speech many times, in 2012 he determine prices soaring for four reasons.First of all, from 2006 in 2005 and the land supply surge decline seen in 2007, 2009 negative growth led to the 2010 land prices rise, and the statistics show that in 2012, the land supply negative growth continues to develop, so, after the round is followed by prices;Second, restrictions on hindered the second-hand housing supply,long radius butt weld 90 degree elbow thus increased the prices soaring.As a specific explanation is that because in 2007, 2009, prices soaring, have a sufficient supply of second-hand housing market, the diluted to a certain extent, the rising cost pressure.But by 2013, by increasing the second-hand housing supply meet the market demand of way also had been blocked by policy;Third, the key problem is that the restrictions on did not restrict housing demand, in 2012, new home sales and ever so until March 2012, when the old land supply of inventory at the termination of the construction of new homes, the sharpening contradictions between the supply and demand, will lead to prices soaring.Fourth, the land price kidnapped house prices.In the words of Mr. Ren, "new (local) government may be more hope prices, or the scale of local government debt in May wipe."

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