China, the country’s economy is broken. A recovery requires a healthier property market

 

By targeting unsold homes, the government believes it can fix some of the economy’s most glaring problems. With so many flats on the market, developers are hesitant to start new projects.

When they halt construction they also stop leasing government land—a shock to heavily indebted local governments, whose main source of revenue is land leasing.

Analysts fear the government’s plan will ultimately fall short of fixing the market.

It does not focus enough on uncompleted flats for which payment has already been received, a nightmare scenario that puts off buyers. 

Households are waiting for over 20m such homes to be finished; the developers of many are bankrupt.

The Economist 31 October 2024

https://www.economist.com/finance-and-economics/2024/10/31/why-china-needs-to-fill-its-empty-homes

Chinese people had nearly 78% of their wealth tied up in residential property

https://englundmacro.blogspot.com/2024/04/chinas-real-estate-boom-developers-home.html

China; the new Japan

https://englundmacro.blogspot.com/2024/10/china-new-japan.html

Tillbaka till WoS 31 oktober 2024

https://englundmacro.blogspot.com/2024/10/wos-31-oktober-2024.html