China’s housing prices are increasing day by day, whereas lots of ordinary people feel at loss as they not only spend lifetime money or even three generations’ savings (from grandparents, parents, and theirs), but also loan a lot of money from bank to purchase just a house. What causes the increasing housing prices in China? Everybody knows it.
Here we want to discuss will China’s real estate collapse or will China’s housing prices reduce? The key is “of course, it will”. Now, we list the following reasons:
First of all, the housing number is increasing. China is crazy. When you travel in every city, you can find construction companies, commercial houses under construction, enclosed areas for building commercials houses, etc. There are filled with money, desire and greed. When the housing quantity reaches the upper limit, will they stop?
Secondly, birth control and aged tendency of population: China strictly observes family planning policy, whereas ratio of old people is larger and larger. Under such situation, birth rate is declining and aged rate is increasing, so how can we deal with so many houses when more and more old people died?
Thirdly, low-rent houses and affordable houses: Chinese government greatly building low rent houses and affordable houses, as it is said the building houses in three years could meet one hundred million people’s requirements. Moreover, after three years, what will Chinese government do? We believe they will continue to provide low rent houses and affordable houses.
Therefore, even if China’s real estate will not collapse, the housing prices in China will certainly decline!
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