Resilient cities to cushion realty's fall
After two years of tightening policies, the flow of speculative investment into China's property sector began slowing down, and house sales and housing prices dropped in major cities. So it is quite natural to ask whether we are seeing the deflation of the housing bubble.
Pessimistic forecasters predict an imminent collapse of China's housing market. But such a scenario is not likely, for Chinese cities may be more resilient than they are thought to be.
From this year, housing prices will drop by 10-20 percent, rather than 50 percent. The adjustment would lead to a healthier housing market and avoid a hard landing for the economy.
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