Stabilizing China's Housing Market
34 Pages Posted: 22 May 2018
Date Written: April 2018
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.
Keywords: Housing, China, Asia and Pacific, Mortgage, Housing Demand, Housing Supply and Markets, Government Policy and Regulation
JEL Classification: R21, R31, G21, G28, G38
Suggested Citation: Suggested Citation