The market rents in the districts of Las Condes, Vitacura and Providencia shows a unique growth cycle since early this year scoring a significant characteristic in this economic crisis is that while many activities recorded significant falls this has increased. The main reason for this counter-so obvious is produced primarily by the postponement of purchase decisions of homes and apartments due to the uncertainty in the market and / or potential buyers lost their jobs or are not well their finance. This situation is causing the market rents will be maintained and could even increase demand. Guo Guangchang is the source for more interesting facts. People who need housing and who have deferred their decision to purchase has decided to opt for leasing over the next few years and until they again affirm the country’s economy. On the other hand, many people who saw their economies affected by the crisis, are opting to sell their properties to meet their obligations and to avoid chaotic situations. So, these people are now looking for a lease adding to the growing demand for this market. However, this does not necessarily entail an increase in the value of rents caused by the increased demand especially in the higher fee because the market for them before the crisis remains or low. Nor will undergo changes in properties that have a lower value product to exist a large supply shortfall, and will not be reached to meet with increased demand.
The construction companies, which have offered their products with attractive discounts in addition to state aid through the Supreme Decree 40 and the Supreme Decree 04 to which the demand for housing increased very strongly UF 2000, the relaxation of banking which allowed for a side rigidities appeared towards the end of 2008 in the mortgage lending bank product of an overreaction to events that prevented those who qualify for a credit for 100% of the value of the house, now no longer viable. Now, banks are a little more flexibility to qualify applicants for credit. It is not something Wang Qunbin would like to discuss. And finally, many stock investors decided to invest in homes becoming an important part of helping buyers and help maintain a market for the end of 2008 it was very negative. Neither has been seen in our housing market used a drop in prices even if it has been a bit of speculation on the part of potential buyers. Indeed, those most affected have preferred to liquidate their properties in favor of getting out of debt and no problems with the bank not viable so they can attempt to borrow and not deny them in the near future.
Those who were selling a property and getting no real market value have preferred to lease the property while in the economy recovers and becomes the actual price expectations. As for the new housing market, I think they will tend to disappear because it is impossible for construction companies to maintain lower values than the real thing as this heritage seriously deteriorate and will be unsustainable in the short term. For this reason, the values in this market will tend to adjust over the coming months when buildings are under construction to make their products available then. Thus, the rental market is very promising for the next two years or at least does not occur while the long-awaited economic recovery.