Stabilizing China’s Housing Market
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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.
Series:
Working Paper No. 2018/089
Subject:
Banking Financial institutions Housing Housing prices Land prices Mortgages National accounts Prices Residential mortgages
English
Publication Date:
April 13, 2018
ISBN/ISSN:
9781484348550/1018-5941
Stock No:
WPIEA2018089
Pages:
33
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