Remarks
What China’s Real Estate Market Will Look Like in Five Years
With the government ending its crackdown, values will recover, but the go-go years are gone.
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The Chinese government’s multiyear crackdown on its housing industry is finally coming to an end. An official statement after the latest Politburo meeting on July 24 did not include President Xi Jinping’s mantra that “housing is to be lived in, not speculated on.” The government is calling for measures to encourage home purchases and stabilize the property market.
It’s about time. The real estate industry, which accounts for roughly a quarter of China’s economy, is suffering another downturn after a brief rebound spurred by the lifting of Covid-19 lockdowns. Consumers are penny-pinching. Building starts are falling. Distressed developers are defaulting again.