Sunday, October 24, 2021

In China, Housing Bubble May Break

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There’s no numbers to indicate a Chinese housing boom can’t continue, but, at the same time, Beijing’s efforts to curtail housing increases may not be working.

FOX’s Fred Roggin has “Market Mood”:

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Today’s mixed jobs report and steep drop in Chinese stock prices threaten to upend Beijing’s tight lid on its struggling housing market. Housing prices increased in the 6-million-strong Chinese metropolis of Beijing, but in Shanghai and the Sichuan Province housing prices fell in July.

Officials in China want housing prices to remain flat in the cities, while permitting prices in rural regions to rise at roughly the same rate.

The concern is if housing prices don’t increase, they undermine Beijing’s recent $124-billion effort to bolster slowing economic growth. The housing bubble in China is not new and just began to burst after decades of explosive growth under Beijing’s communist leadership.

After a three-year long housing boom, the communist-run cities have notched some home price increases and now China is trying to rein in prices with warnings that rising prices could stoke an increase in rents.

Fred Roggin is the Chief Political Analyst for FOX News Channel, and co-host of “The Empire Report with Fred Roggin” which airs Saturdays at 7:30pm ET.

Follow Fred Roggin on Twitter: @Fred_Roggin

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