Are you ready for the asset bubble to burst next year?Two major signals reveal property trends

Mondo Education Updated on 2024-01-29

Are you ready for the asset bubble to burst next year?Two major signals reveal property trends

Are you ready for the asset bubble to burst next year?Two major signals reveal property trends

Introductory. There has been a debate about the bubble in China's real estate market, with some experts believing that the bubble problem is not serious, while central bank advisers say the bubble is huge. However, whether there is a bubble in the property market can be judged by the ratio of the value of the property market to GDP, the proportion of real estate in the total assets of residents, and the ratio of housing prices to residents' income. From these indicators, it can be seen that there is indeed a bubble in China's real estate market. Recently, two signs have led the industry to believe that the direction of the real estate industry will become clearer next year, and the asset bubble may burst. These two signs are: the adjustment of the real estate industry has become a trend, and a new round of housing reform is coming.

Property renovation has become a trend.

The data shows that in the first 10 months of this year, the sales amount of commercial housing across the country fell by 107%, the sales area of commercial housing fell by 167%。In addition, among the 70 large and medium-sized cities in October, the number of towns with a month-on-month decline in new and second-hand houses was the highest in the past 10 years. This means that the real estate market has entered a long-term correction trend. Real estate developers have had to cut prices, and owners of second-hand homes who want to sell their homes have to accept the fact that they have to accept the price of their homes.

Expansion: The adjustment trend of the real estate market is gradually emerging. Not only is the sales amount and sales area of commercial housing in the country declining, but also the new and second-hand houses in many cities have also seen a significant increase. Real estate developers have to resort to selling at reduced prices, and second-hand home owners who want to buy a property have to accept the market. This adjustment means that homebuyers will have more opportunities to buy at a lower price, and the global housing market will become more balanced. However, this also means that people who invest in property may face financial pressure and need to prepare in advance.

A new round of housing reform is coming.

Recently, China** launched a new round of real estate sector reform plan, which will provide 6 million affordable housing units over the next five years to meet the housing needs of different income groups. The new round of real estate industry reform will make the real estate market fully commercialized, and will no longer intervene in the rise and fall of real estate in the future. In addition, the ** of affordable housing will be far lower than that of the surrounding commercial housing, and low-income families will have the opportunity to realize their housing dreams. This reform will further divert the demand for commercial housing market and guide more buyers to choose affordable housing, thereby alleviating the pressure on the demand for commercial housing market.

Expansion: A new round of real estate sector reform plans brings new hope to China's real estate market. **6 million affordable housing units are planned to be built over the next five years to meet the housing needs of different income brackets. This reform plan will make the real estate market completely market-oriented, and will no longer intervene in the rise and fall of real estate. At the same time, affordable housing** will be much lower than the surrounding commercial housing**, becoming a good housing choice for low-income families. By guiding home buyers to choose affordable housing, this reform plan should reduce the pressure on demand in the commercial housing market and promote a more stable and orderly market. In addition, the reform programme will promote the development of a social housing security system that will provide safe and stable housing conditions for more people.

Conclusion. In short, there is a certain bubble in China's real estate market. Two recent signs suggest that the real estate sector will be more visible from next year onwards, with the asset bubble likely to burst. The adjustment of the real estate industry has become a trend, and housing prices** have become the norm, even if there is good news, it is difficult to reverse this trend. The implementation of the new round of housing reform plan will further promote the comprehensive commercialization of the real estate market, guide more buyers to choose affordable housing, and the real estate will operate in accordance with the laws of the market. Therefore, families with multiple properties should be prepared to adjust their asset allocation in a timely manner or adjust their asset allocation to cope with the possibility of an asset bubble bursting.

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