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China’s Property Sector

Author

Listed:
  • Alexander Cooper

    (Reserve Bank of Australia)

  • Arianna Cowling

    (Reserve Bank of Australia)

Abstract

Property development, especially of residential property, represents a sizeable share of China’s economic activity and has made a considerable contribution to overall growth over recent history. Residential property cycles in China have been larger than cycles in commercial real estate, and may pose risks to activity and financial stability. The current weakness in the property market differs somewhat from previous downturns as there are indications that developers may be much more highly geared than in the past, contributing to financial stability risks. Although urbanisation in China may provide support for property construction in coming years, weakness in the residential property market is likely to persist. Policymakers have taken actions to support activity and confidence in the market, and have scope to respond with further support if needed. However, broader concerns about achieving sustainable growth may limit the scale of any stimulus they are willing to provide to the sector.

Suggested Citation

  • Alexander Cooper & Arianna Cowling, 2015. "China’s Property Sector," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 45-54, March.
    • Handle: RePEc:rba:rbabul:mar2015-05
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2015/mar/pdf/bu-0315-5.pdf
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    References listed on IDEAS

    as
    1. Zan Yang & Jie Chen, 2014. "Housing Reform and the Housing Market in Urban China," SpringerBriefs in Economics, in: Housing Affordability and Housing Policy in Urban China, edition 127, chapter 0, pages 15-43, Springer.
    2. Kaiji Chen & Yi Wen, 2017. "The Great Housing Boom of China," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(2), pages 73-114, April.
    3. Zan Yang & Jie Chen, 2014. "Housing Affordability and Housing Policy in Urban China," SpringerBriefs in Economics, Springer, edition 127, number 978-3-642-54044-8, June.
    Full references (including those not matched with items on IDEAS)

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