Property stocks in China have dropped as a result of the new restrictions.

Property-related equities fell to their lowest levels in five years today as a result of a new wave of government rules aimed at stifling China’s fast-growing property market. qatar houses

China’s government enacted new laws on Friday, stiffening the 20% capital gains tax on home sales and imposing new curbs on home purchase and second-home loan rates. For several years, the government has attempted to reduce property speculation in China, although with only minor success.

The new measures, on the other hand, have teeth. They also send a strong message that the administration is not giving up on efforts to halt price increases in many cities.

“Depending on how the new policy is implemented, it may have a severe or negligible impact. However, the wording is rather harsh “Reuters spoke with Yao Wei, a China economist at Societe Generale CIB. “The effects could be negligible after three months. However, it has sparked a lot of negative anticipation.”
Initial reaction to the announcement was a 9.3% drop in equities tied to real estate.

“Related ministries, including the People’s Bank of China (central bank) and local governments, will announce more detailed measures, so markets should definitely take the edict seriously and be prepared for falling prices of related financial assets,” said Ting Lu, chief China economist at Bank of America-Merrill Lynch.

Wang Shi, the chairman and founder of China Vanke, China’s largest developer, said there is a property bubble in China in an interview with CBS’ “60 Minutes” that aired Sunday night. To buy an apartment in Shanghai, the average buyer would have to pay more than 45 times his or her annual wage, he claimed.

He did, however, express confidence in the government’s ability to deal with the crisis. “I believe that top leaders have the necessary intelligence to cope with this. I sincerely hope so! “he stated

Hotels are the next big thing in China.
According to a new research, more than 211,000 hotel rooms are under construction in China, representing a 13.9 percent increase above existing supply.

According to the STR Global Construction Pipeline Report, China has nearly four times the number of rooms in development as India, the country with the second largest hotel development pipeline. There are 54,478 rooms in the pipeline in India, which is a 29% increase over the present supply.

The STR pipeline report tracks hotel projects that are under construction, in final planning, or in the planning stages, but not in the pre-planning phases.

In terms of percentage rise, the Philippines is predicted to rise by 35.7 percent over the next few years, with 14,048 rooms in the pipeline.
Other markets in the region are predicted to expand at least 10%:

Indonesia (with 30,942 rooms, up 24.2%)
With 8,500 rooms, Vietnam has increased by 18.7%.

With 14,245 rooms, Malaysia is up 12.9 percent.
With 1,755 rooms, Cambodia has a positive growth rate of 12.3%.

According to STR data, the region’s overall hotel development pipeline consists of 1,788 hotels with a total capacity of 385,043 rooms.