Revival In China’s Property Market Buffers Economy
China’s housing market is finally picking up after a two-year downturn, and it’s just in time—the housing recovery is helping counter a continued slowdown in the broader economy.
Looser lending policies have led to a rise in property prices and sales in recent months, and new construction is advancing. From January to April housing sales jumped 61.4% to $369B from a year ago and construction starts rose 21.4%, according to the National Bureau of Statistics, the Wall Street Journal reports.
But all this building could be leading to a property bubble, economists warn. The country wants to boost its property sector enough to reach its 6.5% growth target this year without making its overcapacity and debt problems too much worse—and that’s a tough balancing act. [WSJ]