https://www.reuters.com/world/china/china-new-home-prices-fall-fastest-pace-over-9-years-august-2024-09-14/
China's new home prices fell at the fastest pace in more than nine years in August, official data showed on Saturday, as supportive measures failed to spur a meaningful recovery in the property sector.
I hate how it's framed as a bad thing. Intentional or not, real estate prices falling is a good thing.
Lower taxes is good for home owners, too. It's only those wanting to profit from housing prices in the short term who are hurt. The prices will go back up and as long as you are selling and then buying if you move, and the prices are going down across the board, you won't lose anything.
The only negative really other than for investors is for retirees who need to sell to have money to survive.
And I say this as someone who purchased a home in an overpriced area a couple of years ago. The value has slightly declined and I'd love to see it further decline so I could pay less in taxes. In 15 or 20 years when I'm ready to sell it will be plenty valuable.
This I believe is an intended effect of Chinese government's shift away from depending on housing investment as primary factor in driving growth - to bring home affordability back as home ownership has become a deterrent to marriages and child-rearing, both in severe decline and the biggest long term strategic threat to China.
Uhm, you mean that after the government let the speculators run rampant in the housing market building entire ghost cities while inflating the prices using consumer money.. they cracked down on the building sector and are leaving consumers holding the bag.
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