Chinese property broker Beike expects housing demand to decline domestically over the next decade. In the photo here on June 28, 2022, it is a new commercial residential complex in Nanning, Guangxi Zhuang Autonomous Region, China.
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BEIJING – China’s massive residential real estate market will only see demand decline over the next 15 years, predicts sales and rental giant Beike.
New demand for land-based housing is expected to decline by 2.5% per year between 2021 and 2035, the company’s research arm said in a report shared with CNBC. Beike owns and operates Lianjia, one of China’s largest housing brokerages.
The primary reason for the decline is China’s aging population, according to the report.
Beike’s report said that the support ratio of China’s population dependency – comparing the working population aged 15 to 64 to the sum of those younger or older than that age range – peaked in 2010.
Three or four years after Japan and Korea reached a similar peak, demand for their housing has declined, the authors said.
General real estate and related industries account for more than a quarter of China’s economy, according to Moody’s. Most of the wealth of the home is tied to real estate. In the past few years, Beijing has tried to limit the high use of debt developers and buyer speculation.
Still a giant market
However, Beike expects the value of the transaction to grow slightly, averaging 1. Read also : Heiting named in 2022 Capital District Sportswoman of the Year category.8% per year by 2035, bringing the annual value to 29.2 trillion yuan ($ 4.36 trillion) by then. -time.
Even with a decline in floorspace demand, the level in the year 2035 will still remain large at 1.33 billion square meters (14.32 billion square feet), the report predicted.
For comparison, about 2.2 billion square feet of new single-family homes were completed in the United States last year, according to the U.S. Census Bureau.
Much of China’s new housing demand in the coming years is likely to be met through restructuring or rebuilding existing properties, rather than new developments, Beike said in his report.
Housing demand will also vary by region, with more people interested in moving to major metropolitan areas such as those around Shanghai, Beijing and Shenzhen, said Tang Xuan, a senior analyst at Beike’s research institute.
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China’s debt is more than 250 percent of GDP, higher than the United States.
Can you own real estate in China?
The answer is yes, foreigners are allowed to buy property in China! The essential requirement is that you have studied or worked in China for at least one year on a residence permit. This may interest you : U.S. Diplomats Take Lead in Community Problems Across the United States and the World – United States Department of State. Foreigners are allowed to own only one residential property for housing purposes.
Can you own your own home in China? “There is no private ownership of land in China. One can only obtain land use rights. Land lease up to 70 years is usually granted for residential purposes. Foreigners who have worked or studied in China for at least a year are allowed to buy a home.
Can foreigner own property in China?
A foreigner can only own one property in China, and that property must be residential. There are additional requirements depending on the province and city. See the article : The Philadelphia couple marries their real estate agent. For example, in Beijing, you have to pay taxes and social security for at least five years before you are allowed to buy a property.
Is property ownership allowed in China?
Because China is a socialist country, all land is either subject to government ownership or collective ownership. In principle, municipal land is subject to government ownership and land outside cities is subject to collective ownership. However, one can obtain the right to use the land.
What’s happening with China’s real estate?
The firm estimates that real estate and related sectors account for 28% of China’s gross domestic product. On Tuesday, Moody’s cut its 2022 forecast for China’s GDP growth to 4.5% from 5.2%, based on the impact of Covid-19, the slowdown in the real estate market. and geopolitical risks.
Is there a real estate crisis in China? Unfortunately for Beijing, it was the three red lines that led to the current real estate market crisis. Hit the news in December 2021: China Evergrande Group, one of the country’s largest property developers, has been formally declared a defaulter.
What’s going on with China’s real estate market?
The pain in the real estate market is expected to dampen China’s growth by 1.4 percentage points this year, which is only 0.2 percentage points lower than the impact of Covid-19 control policies. , according to economists at Goldman Sachs Group Inc. This puts the official 2022 GDP growth target of about 5.5% away.
What is China’s real estate problem?
China’s real estate market is in decline, which began last year due to Evergrande’s debt default. Over-indebted developers have been curbed through the Three Red Lines policy, which has tightened leverage requirements.
What is a ghost city in China?
Unoccupied developments in China are the most unoccupied property developments in China, and the most commonly referred to as & quot; phantom cities & quot; or & quot; ghost towns & quot ;. The phenomenon has been observed and recorded since 2006 by writer Wade Shepard, and subsequently reported by the news media over the decades.
Do phantom cities still exist? Built for a population that never arrived, about 50 of these surreal sites were desolate across the country. But still construction continues. These new cities are usually built in rural areas on the outskirts of existing cities.
What characterizes the Chinese ghost towns?
The ghost towns in China have everything – high-rise apartments, lakes, streets, shopping malls. The only thing missing are the inhabitants. Today, China has more than 50 sparsely populated ghost towns. These cities, designed to house millions, are now populated by only a few thousand residents in each.
Does China still have ghost cities?
China’s Phantom Cities Are Finally Shaken to Life After Years of Empty Roads. Large new urban districts that were empty are gaining residents and businesses.
Why do ghost cities exist in China?
According to experts, sometimes these sold homes, buildings, districts, and even entire cities remain vacant for years, due to an imbalance between supply and demand (also believed to be one of the reasons for the crisis of ‘Evergrande) caused by excessive urbanization in China.
Is China’s real estate market collapsing?
The pace of decline in China’s home sales was expected to improve marginally this year as local governments eased the restraint in the interest of supporting growth. But due to the lockdown in Shanghai and dozens of other cities since March, this year’s decline is actually greater than in 2021.
What is China’s real estate problem? China’s real estate market is in decline, starting last year with Evergrande’s debt default. Over-indebted developers have been curbed through the Three Red Lines policy, which has tightened leverage requirements.
What is happening in China’s real estate market?
There have been signs of an improvement in the housing market after local governments reduced some spending cuts and authorities lowered mortgage rates. Sales of new homes in 17 cities monitored by China Index Holdings have risen 89% so far in June from a month earlier, also helped by a loosening of Covid restrictions.
Why is China’s real estate market crashing?
Property sales have declined since last year, as tight credit policies and a weakening economy have reduced demand. This year’s Covid lock has hit the industry harder.
