Will China’s “New Real Estate Measures” succeed?

Will China’s “New Real Estate Measures” succeed?

On May 17, 2024, the Chinese government introduced a policy that requires the central bank to provide 300 billion yuan worth of funds to local governments to directly purchase unsold homes that are not being sold with that money

In the meantime, the Chinese government has tried to revive the real estate market by relying on 調節 and indirect measures to boost demand, such as lowering real estate lending rates, despite the downturn in the real estate market following the collapse of the real estate bubble,
Indeed, it is thought to be the first direct home purchase of the “socialist 共産黨” style

Of course, the total amount of unsold homes that remain unsold and in stock across China is estimated to be about 2 trillion yuan, so the 300 billion yuan promoted by the Chinese government is significantly insufficient to completely reverse the market atmosphere

The United States encouraged so-called “Wall Street Landlord” financial institutions to directly purchase about 89 million single-family homes that came to the auction market after the 2008 housing price crash, marking the first time in U.S. history that private equity fund managers such as Black Stone had huge single-family homes. Housing prices recovered relatively quickly

In Japan, on the other hand, the government has wasted time since the bursting of the property bubble, leaving many 草 suffering from a steady decline over the course of about two decades, let alone a recovery in housing prices

In most cases, there is no right answer to economic problems. There is only pain of choice. Korea’s real estate problem is also now the time for painful and dangerous choices