21 sats \ 1 reply \ @OT 8 Dec 2023 \ on: China: Real Estate Still Crashing econ
I think the inner cities of Shanghai and Beijing haven't really seen much depreciation. Most of this is happening on the outskirts and "smaller" cities no one really heard of.
The interesting thing is that they are letting it crash. I guess Xi really meant it when he said housing shouldn't be a speculation
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50 sats \ 0 replies \ @xz 8 Dec 2023
I guess Xi really meant it when he said housing shouldn't be a speculation
To consider that the politburo has multi-year plans, downsides of encouraging speculation would have been identified long ago, yet willfully ignored to capitalize on investment until market sentiment shifted and a response became necessary.
True, certain areas will depreciate in a shorter timescale. I guess what will play out is a continuation of an illiquid, overinflated market in larger municipalities. If values drop ~40% that'd be popping the bubble, otherwise it's walking a tightrope to stem stagflation.
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