China's real estate market reform and development path

Authors

  • Hongxiao Yu

DOI:

https://doi.org/10.54691/bcpbm.v25i.1845

Keywords:

Real estate market, Development path, China

Abstract

China's real estate market has made an important contribution to economic and social development and has attracted widespread attention. The real estate market is not only concerned with housing problems, but also closely related to finance, residents and public services, and has become an important factor affecting economic and social development. This paper analyzes the main reasons driving the development of China's real estate market and discusses the possible problems. The results show that China's real estate market is in urgent need of reform and innovation to solve some existing contradictions, so as to promote high-quality economic development. Finally, this paper provides some suggestions for real estate development.

Downloads

Download data is not yet available.

References

Bayoumi, Tamim and Zhao, Yunhui (2021). “Incomplete Financial Markets and the Booming Housing Sector in China.” IMF Working Paper 20/265, Available at https://doi.org/10.2139/ssrn.3710338 [Accessed on June 25, 2022].

Bloomberg (2016). “Chinese Cities’ Expansion Plans Could House 3.4 Billion People”. Bloomberg News. Available at https://www.bloomberg.com/news/articles/2016-07-15/chinese-cities- expansion-plans-could-house-3-4-billion-people#xj4y7vzkg [Accessed on June 25, 2022].

Bloomberg (2022). “China Urges Banks to Boost Property Lending on Default Fears”. Bloomberg News. Available at https://www.bloomberg.com/news/articles/2022-01-07/china-urges-banks-to- boost-property-loans-as-default-fears-grow [Accessed on June 25, 2022].

CNBC (2022). “China cuts borrowing rate again, seeking to revive housing sector” China Economy. CNBC. Available at https://www.cnbc.com/2022/05/20/china-cuts-borrowing-rate-again-seeking- to-revive-housing-sector.html [Accessed on June 25, 2022].

Ding, Ding & Huang, Xiaoyu & Jin, Tao & Lam, W.. (2017). “Assessing China's Residential Real Estate Market.” IMF Working Papers. 17. 1. Available at https://doi.org/10.5089/9781484324813.001 [Accessed on June 25, 2022].

Feng, Yanchao (2021). “Examining the determinants of housing prices and the influence of the spatial–temporal interaction effect: The case of China during 2003–2016”. Chinese Journal of Population, Resources and Environment Available at https: // www.sciencedirect.com / science / article / pii / S2325426221000139 [Accessed on June 25, 2022].

Farrer, Martin (2021). “Evergrande: ‘Everyone bet on inexorably rising Chinese property prices’”. Chinese Economy. Available at https://www.theguardian.com/business/2021/dec/31/evergrande-chinese- property-sectors-debt-crisis-to-intensify-in-2022 [Accessed on June 25, 2022].

Gao, Liangping & Woo, Ryan (2022). “China's property market woes expected to worsen in 2022, Reuters poll shows”. Reuters. Available at https://www.reuters.com/markets/rates-bonds/chinas-property-market-woes- expected - worsen - 2022 – 2022 – 05 – 24 / # :~ :text = The % 20 property % 20 market % 2C%20a%20pillar,down- payments % 2C % 20 and %20 subsidies . [Accessed on June 25, 2022].

Gill, Chris (2021). “Chinese officials begin crackdown on real-estate speculation” Available at https: // www.asiafinancial.com / chinese-officials-begin- crackdown-on-real-estate-speculation [Accessed on June 25, 2022].

Han, Fei & Jurzyk, Emilia & Guo, Wei & He, Yun & Rendak, Nadia. (2019) Assessing Macro-Financial Risks of Household Debt in China. IMF Working Papers. Available at https://doi.org/10.5089/9781513516073.001 [Accessed on June 25, 2022].

Hoskin, Peter (2022). “Evergrande: China property giant misses debt deadline”. BBC News. Available at https://www.bbc.com/news/business-58579833 [Accessed on June 25, 2022].

Hsu, Sara (2022). “China’s Real Estate Slump: Underlying Issues”. The Diplomat Available at https://thediplomat.com/2022/05/chinas-real-estate-slump- underlying-issues/ [Accessed on June 25, 2022].

Huang, Tianlei (2022). “China's looming property crisis threatens economic stability” Peterson Institute for International Economics (PIIE). Available at https://www.piie.com/blogs/realtime-economic-issues-watch/chinas-looming- property-crisis-threatens-economic-stability [Accessed on June 25, 2022].

IMF (2021). “Housing Prices Continue to Soar in Many Countries Around the World.” IMF Blog. Available at https://blogs.imf.org/2021/10/18/housing-prices- continue-to-soar-in-many-countries-around-the-world/ [Accessed on June 25, 2022].

Lau, Yvonne (2021). “China stores 70% of its wealth in real estate. Now, the property crisis is forcing investors to reconsider their favourite means of savings” Fortune. Available at https :// fortune.com /2021/12/02/chinese-real-estate- investing-home-ownership-evergrande/ [Accessed on June 25, 2022].

Qian, Xianhang & Shanyun, Qiu & Zhang, Guangli. (2021). “The impact of COVID- 19 on housing price: Evidence from China.” Finance Research Letters. 43 101944. Available at https : // doi.org / 10.1016 /j.frl.2021.101944 [Accessed on June 25, 2022].

Reuters (2022). “China cuts borrowing rate more than expected to revive housing sector”. Available at https://www.reuters.com/markets/rates-bonds/china-cuts- mortgage-reference-rate-again-seeking-revive-credit-2022-05-20/ [Accessed on June 25, 2022].

Reuters Staff (2013). “Beijing, Shanghai vow to enforce new property cooling measures”. Reuters Financial. Available at https://www.reuters.com/article/china-property-idINL3N0CM02U20130330 [Accessed on June 25, 2022].

Sheng, Songcheng (2021). “Why Chinese house prices keep going up and up”. Ceibs. Available at https://www.ceibs.edu/new-papers-columns/19452 [Accessed on June 25, 2022].

Stevenson, Alexandra & Li, Cao (2021). “What to Know About China Evergrande, the Troubled Property Giant”. The New York Times. Available at https://www.nytimes.com/article/evergrande-debt-crisis.html [Accessed on June 25, 2022].

Sundaram, Narayanan Soma (2021). “China Evergrande: Investors assess risks of likely default”. Nikkei Asia. Available at https://asia.nikkei.com/Spotlight/Market-Spotlight/China-Evergrande- Investors-assess-risks-of-likely-default [Accessed on June 25, 2022].

Tan, Weizhen (2021). “China’s embattled developer Evergrande is on the brink of default. Here’s why it matters”. China Markets. CNBC. Available at https://www.cnbc.com/2021/09/17/china-developer-evergrande-debt-crisis- bond-default-and-investor-risks.html [Accessed on June 25, 2022].

Wang,Ying, (2022). “Trend of lower home loan rates to expand”. Available at https://global.chinadaily.com.cn/a/202203/29/WS62425c03a310fd2b29e53d25. html [Accessed on June 25, 2022].

Yu, Yong Ding (2022). “Commentary: Is there a housing bubble in China's real estate sector?”. CNA. Available at https://www.channelnewsasia.com/commentary/china-housing-real-estate- property-market-gdp-growth-2512321 [Accessed on June 25, 2022].

Zhao, D., Chen, Y. & Shen, J.H., 2020. Mortgage Payments and Household Consumption in Urban China. Economic Modelling, 93, pp. 100-111. Available at https://doi.org/10.1016/j.econmod.2020.07.008 [Accessed on June 25, 2022].

Downloads

Published

2022-08-30

How to Cite

Yu, H. (2022). China’s real estate market reform and development path. BCP Business & Management, 25, 369-373. https://doi.org/10.54691/bcpbm.v25i.1845