China has been tightening housing policies since Mar 2017 to curb speculation demand. While this has cooled skyrocketing home price to some extent,a better approach should be increasing residential land,said cf40 senior fellow Zhang Bin in latest report: mp.weixin.qq.com/s/rTeguhud8-kL…
#China’s financial system,dominated by debt financing and lacking personal pension account system, has intensified the financial features of and #investment demand for houses. The widespread use of housing mortgage loans has been major force driving up #housing price in China.
The main supply-side factor affecting housing price is the supply of residential land. The underdevelopment of #infrastructure and public facilities in #megacities has restrained the improvement of residential land supply in these cities.
Under continuously restrictive housing policies, developers have become more cautious toward the future of housing market, reducing land/house hoarding activities and expediting turnover, which could help stabilize fluctuations of housing price.
More effective measures to address high housing price could be 1) increase supply of residential land in first-tier cities; 2) improve public facilities and services of big cities; 3) provide more basic housing securities measures for low-income people living in big cities.
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