The Chinese property pop
The Chinese housing market has missed the inflation memo. New data out this week showed Chinese new-home prices in the country falling roughly 1% in the last year, breaking more than 6 consecutive years of rising prices.
Although a relatively small drop, the fall in new-home prices is just the latest piece of evidence that paints a concerning picture for the largest residential property market in the world. Sales of apartments by the country's largest developers have fallen for 13 months straight and hundreds of buildings that were presold have been left unfinished — leading some homeowners to stop paying their mortgage, a rare show of dissent in the country. All told, the WSJ estimates that billions of square meters of residential homes have been started, but not yet completed, in the last decade.
All hands on deck
Chinese officials are doing all they can with numerous policies aimed at reinvigorating the sputtering sector and keeping the increasingly indebted property developers in business. One Chinese party secretary even went as far as to play the role of realtor, urging the country's leadership to lead the charge in buying property, saying "If you’ve bought one, buy two. If you’ve bought two, buy three. If you’ve bought three, buy four" in a speech yesterday.
