Experts Argue that the Housing Market is Undergoing Natural Adjustment
The slowing down of the housing market in China was prompted experts in predicting the slowing down of the industry even for the country’s macro economy. Although analysts are arguing that the market is just going through a natural and necessary adjustment which they say is good for the economy.
A recent statistical reports is showing proof that the overheated market is cooling down and according to the National Statistics Bureau, 44 of 70 major cities monitored by the government saw housing prices increase in May with the lowest increase seen in January 2013. During the first quarter of this year a leading estate company saw a month on month decrease in the purchase of land volume. But experts still say that the cooling down of the market offered a chance for the industry to release risks.
Experts also say that the housing market need adjusting and the longer the unhealthy development drags more bubbles will be accumulated and created and more imbalance and dangerous he economy will be. And by adjusting housing prices to return it to reasonable levels that can meet the expectations of the average person and is great for the urbanization and social harmony. The housing market is experiencing a rapid but unhealthy development in the past years and the overheated market boosted by speculative investment caused series of problems.
High rents has also hindered development in the service sector and the over investment in the real estate industry impeded industrial upgrading which pushed housing prices and expanded the wealth gap. The problem in housing prices also affected the lives of the younger generation of Chinese residents as well.