Past warnings of a housing-market crash in China have never been borne out, with the real-estate sector always managing to muddle through. But unless the government takes concerted action to address the deteriorating finances of developers, this time may well be different.
BEIJING – In the two decades since China’s State Council officially classified the real-estate sector as a “pillar industry,” the sector has undergone rapid development, propelling GDP growth and inspiring in millions of Chinese the dream of owning their own home. But the sector is now plagued by problems, from high prices to massive debts, and threatens to undermine growth at a time when China can ill afford it.
BEIJING – In the two decades since China’s State Council officially classified the real-estate sector as a “pillar industry,” the sector has undergone rapid development, propelling GDP growth and inspiring in millions of Chinese the dream of owning their own home. But the sector is now plagued by problems, from high prices to massive debts, and threatens to undermine growth at a time when China can ill afford it.