Reuters) BEIJING: China's new home prices grew in January although major cities saw early signs of softening, as the government continued its efforts to rein in speculative demand
to fend off bubble risk.
The left-leaning New Democratic Party (NDP) came to power last year with a pledge to improve housing affordability and its first full budget is expected to include measures to curb speculative demand
, crack down on tax cheats and money laundering, and stabilize housing markets.
In addition, the Chinese homebuilding market continues to be policy and regulation driven, with the government aiming to maintain affordable housing prices for the general public and to curb speculative demand
When the expectation of price increase that prompts speculation comes into serious question, speculative demand
collapses and prices drop sharply.
We've observed that real estate prices would become inflated because of speculative demand
, and developers would typically overleverage themselves to fund their projects.
The global price appreciation of industry metals -- led by physical and speculative demand
from China -- has boosted Iranian investors' optimism towards such domestically-traded companies.
1% rise in prices week-on-week amid a speculative demand
and bets over merger plans in 2017.
Plans to root out illegal practices to curb speculative demand
One of the most important reasons for the recent investment surge was abundant liquidity driving speculative demand
-- and that is hardly sustainable.
The trend clearly indicates that end user demand remains steady to increasing, whereas investor and speculative demand
is sluggish," said Sameer Lakhani, Managing Director at Global Capital Partners.
In such situation, high unemployment will provide high multiplicative public expenditure effect on national income growth and low interest rate will enable high elasticity of speculative demand
for money (case of horizontal LM curve).
In this scenario, portfolio inflows could remain weak and speculative demand
for hard currency high," VTB Capital said.