Nowadays, The housing prices turning point refers to whether the real estate prices continue to increase in the future or reverse. Simply put, the turning point of the housing prices refers to whether the future real estate prices will maintain the current growth trend or fall. In recent years, the phenomenon of housing prices turned points has become increasingly prominent in worlds developed countries.
In China, the turning point of housing prices is a major concern of the various parties concerned,especially since the housing prices have been rising in recent years. As more and more cities face the risk of overheated housing prices,governing the real estate market has become one of the most intense fiscal tensions in China. As the crisis deepened, the government began to intervene to maintain the real estate market and prevent a complete collapse of the entire housing sector.
The issue of housing prices turning points is no longer simply a matter of economic research interest, but also has become a concern of ordinary citizens of various countries. As housing prices continue rising in certain cities, some purchasers hesitate to buy houses, choosing instead to rent. This has an impact on the rental market of those cities, leading to an increase in rental costs and a decrease in rental housing availability.
In order to stabilize housing prices, the Chinese government’s intervention has been rather effective. For example, the government banned speculative activities such as flipping houses, implemented a property tax, and lowered the pre-sale restriction for housing projects. Besides, the government has also reimbursed some tax for households’ purchasing their first houses. Such measures reduce the transaction cost and make property more affordable for people.
The Chinese government has also developed monetary policy tools to restrict speculative housing behaviors. For example, they have increased the threshold for loan approval and its interest rate, raised the deposit rates, and encouraged financial institutions to increase short-term loan supply. It not only ensures the secondary housing transaction operated in compliance with related regulations and laws, but also limits the speculative activities of some buyers.
Overall, while the real estate market is still cooling off, the Chinese real estate market certainly seems on the mend. The market will continue to develop under the guidance of relevant government policies, enabling it to better serve its citizens in the future.