2015-02-16

4 Sentences For Understanding Chinese Real Estate

An article presents 4 sentences for understanding the Chinese real estate situation in 2015 and whether prices will rise or fall:

1. Market circumstances have changed, regulation fades - deregulation and increased market forces will be the trend in 2015

2. Regulation has changed, "fade out" is the essence of reform - governments will focus on supplying affordable housing, rather than seeking to regulate the entire market

3. Regulation enters a deeper stage, price volatility is inevitable

4. In diversifying (rebalancing) the economy, it is difficult for real estate to fade
First, real estate is not hot enough, and the Chinese economy's downward indeed reinforce each other; Second, China's economic dependence on the real estate industry is gradually reduced; Third, the real estate industry uneven quality from the overall look is still not sharp decline; Fourth, the 2015 deployment of restructuring, tax reform, a number of actions to deepen reform, it is precisely to try to mitigate downstream impacts to local governments to increase the diversity of new stable sources of revenue.

Therefore, the "fade regulation" does not mean "real estate fade", the industry will continue to play a supporting role in the long-term. However, the real estate industry single handedly driving the Chinese economy, is an outdated expectation.

iFeng: 4句话搞懂2015年房价是涨还是跌 该买房吗?

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