Sounds great, normalisation is required for many housing markets. Prices of a basic utility inflated due to speculation is the actual dangerous condition we are very comfortable with and viewed as security in many countries.
Unfortunately, in China housing is the only thing they’re legally allowed lowed to “invest” in. There is no stock market, you can’t own land, you can’t buy land in foreign countries (legally). So when their market crashes 20% that’s the equivalent of the NSDAQ, housing, and subsidies markets all crashing 20% in a day, which is like beginning great depression type stuff.
That’s quite exactly the opposite of what’s true actually.
The Beijing Stock Exchange and Shanghai Stock Exchange are in fact stock markets, and they can buy land legally in many countries (there’s no Chinese law prohibiting it at least, local laws in some countries may ban foreigners from buying land). They (their rich, not common people) buy housing in other countries because it’s viewed as a better and safer investment (also because buying a home in China is a 70 year lease)
Good. The way it should be. Housing is not wealth storage, it’s a place to live.
Let’s hope this fall spreads out of China.The kiwis in New Zealand have seen the prices fall by a third iirc
