Stabilizing China’s Housing Market

April 13, 2018

Preview Citation

Format: Chicago

Richard Koss, and Xinrui Shi. Stabilizing China’s Housing Market, (USA: International Monetary Fund, 2018) accessed September 20, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The sharp rise of house prices in China’s Tier-1 cities has fostered a great deal of commentary about the possibility of bubbles forming there. However, China’s unique housing market characteristics make it difficult to assess the macroeconomic severity of bursting bubbles, even if they exist. These include the setting of land supply and prices by the government, among many others. The presence of overbuilt “ghost cities” greatly complicates the ability of traditional macroeconomic policies to address these concerns. This paper looks at proposals to shore up the mortgage underwriting and legal infrastructure to help China withstand the impact of falling prices, should this occur.

Subject: Banking, Financial institutions, Housing, Housing prices, Land prices, Mortgages, National accounts, Prices, Residential mortgages

Keywords: Borrower default, China, Default insurance, Delinquency rate, Global, Government mortgage guarantee system, Guarantee company, Guarantee sector, Housing, Housing prices, Interest rate, Land prices, Monetary policy, Mortgage, Mortgage enforcement, Mortgage guarantee company, Mortgage guarantee sector, Mortgage guarantor, Mortgage lender, Mortgage terms, Mortgages, Residential mortgages, Supply and demand, WP

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2018/089
Stock No:

WPIEA2018089
ISBN:

9781484348550
ISSN:

1018-5941

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