Recently, Reuters reported that China's housing prices may plummet, and some people even say that house prices may become cabbage prices, which are only two or three thousand yuan per square meter. This statement seems somewhat true. However, I don't have the expertise and I don't know much about economic laws and policies. Among the information I can see on the web, I would like to share some thoughts.
First, policies determined entirely by the market seem unrealistic. China has been working on a soft landing in recent years, and the government's economic policies have been relative, so I think this is unlikely.
Second, recently, the US Treasury Minister, the President of the British Pacific Bank, and the Governors of the Big Four have been advising China to stop providing financial support to real estate companies and instead invest in the health supplement industry. This will not only protect the rights and interests of the people, but also help small and medium-sized enterprises to survive and not go out of business like those that make bricks, cement, tiles, wires and lamps.
This is because they are imparting experience. In recent years, China has been actively pursuing this policy.
Third, while house prices are rising, some people are profiting. And falling house prices will also benefit some people, but the beneficiaries may be different.
This reminds me of the recent interest rate hike in the United States. They may want house prices to fall so they can bottom out quality businesses in a recession around the world. This approach is somewhat similar to my guess. Do they want house prices to fall? They release water every month and then dig the bottom, and this possibility also exists. Of course, this is just my guess, and I am not an expert either.
