Pan Shiyi: The bubble in the first-tier city real estate market is becoming serious

Pan Shiyi, chairman of Soho China, said in a media interview that since March, real estate sales in Beijing, Shanghai, Shenzhen and other first-tier cities have warmed up again, and prices have risen markedly.　　The bubble in the real estate market of the first-tier cities is becoming more and more serious. Pan Shiyi pointed out that "rent and sale ratio" is a measure of real estate investment return of important indicators. In the past 5 years, due to the imbalance of supply and demand caused by the housing sales price relative to rent level, residential and commercial property prices than the overall downward trend. One of the first-line urban residential properties since 2008, began to appear gradually bubble tendency.　　He argues that the main reason for soaring house prices is the scarcity of land, the hoarding of property developers, and the recent signal that the government will release less supply of future land, which will undoubtedly create market tensions and create a vicious circle. According to statistics, from 2005 to 2009, Beijing's residential property prices are 6.42%, 6.11%, 4.83%, 4.59%, 3.81%, the other first-tier cities are generally the same as their rents.　　First-line city residential rental ratio has been less than 5 years of personal housing loan interest rates. Pan said that the real estate market can return to the state of rationality, mainly depends on policy. In this way, the land policy needs to be fully adjusted to effectively increase land supply and to combat hoarding. In addition, the "strokes and hangs" system should also be changed to reduce auctions, more use of "dark standard" mode, while preventing "tailor-made" type of land.