“Squeezing the Bubble” rather than “Bursting It” to Solve the Overheated Real Estates in China

DOI

10.2991/aebmr.k.220405.113How to use a DOI?

Keywords

China’s housing market bubble; urbanization; population aging; housing market speculation; Japan’s real estate bubble

Abstract

Real estate sector has been the key engine for China maintaining economic growth. A house has two attributes, one is residential, and the other is capital. China’s high housing prices are due to land supply as well as land system and policy reasons. After 2015, the ratio of land cost to housing price in big cities has reached an average of 40%. For a long time, China’s real estate market has focused on demand regulation, and the regulation effect is not sustainable, which once formed the expectation of unilateral rise in housing prices. Through literature review, this study analyzes the current situation and causes of China’s housing market bubble in terms of limited urbanization space, intensified population aging, and housing market speculation. Compared with the burst of Japan’s real estate bubble in 1990 to predict the future of China’s real estate, it is concluded that housing prices should be stabilized, and the bubble should not be actively punctured.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Zixuan Liang
PY  - 2022
DA  - 2022/04/29
TI  - “Squeezing the Bubble” rather than “Bursting It” to Solve the Overheated Real Estates in China
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 685
EP  - 690
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.113
DO  - 10.2991/aebmr.k.220405.113
ID  - Liang2022
ER  -