An Economist in the U.S., Li Hengqing, told Epoch Times on Dec. 11 that for a considerable time, house prices in China had continuously increased, not decreased.
However, house prices will continue to fall shortly because they need to sell properties quickly to get money to survive in these uncertain times.
The Chinese Communist Party (CCP) authorities have placed many regulatory restrictions to ease the market from reaching floor prices and stop people from selling their investments.
Li Hengqing said that the current profit on real estate is relatively low. The real estate market is chaotic without an average market price. People are racing to reduce costs in many different ways, such as offering gifts.
Because if you can’t sell your house, you can’t withdraw capital, and you can’t pay debt and interest. As a result, the real estate company will face default and have its credit rating downgraded. Then people would sell off that company’s bonds.
Political commentator Wang He told Epoch Times on Dec. 10 that it is reasonable for real estate companies to take capital withdrawal measures to avoid bankruptcy.
However, CCP officials are primarily good at finding ways to please their superiors rather than easing the citizens’ suffering.
For the past few years, they didn’t care. Even if it floods in the future, it has nothing to do with them. They slowly act or don’t work at all. Finally, the CCP’s regime has some doomsday mentality.
Wang He said, as long as the Chinese Communist government maintains economic growth figures, private enterprises will have to bear the cost.
Li Hengqing said, if CCP wants to save the country’s economy from collapse, it must maintain property prices.
Beijing’s efforts will be in vain if people continue to wait without buying. It won’t work this way.
CCP will take a fatal blow if they don’t handle the real estate troubles well.