The markets of Chinese real estate experienced a long frozen period during the past two years. “China’s new home prices fell significantly in December for a fourth straight month even as year-end sales volumes surged – a somber omen for fourth-quarter 2014 economic growth data due out later in the week.”(http://www.wsj.com/articles/china-month-on-month-december-housing-prices-fall-at-slower-pace-1421548940)The government tried to cool down the markets of real estate to avoid the bubble when China was in a rapid growth progress. The pressure from the huge amount of people with low income was another pressure the Chinese government faced. Many people in China, especially in big cities, including Beijing, ShangHai, and GuangZhou, cannot afford the high price of the house. To be honest, Chinese government presented an effective execution ability. The price and the numbers of the trade were slumped impressively.
However, should this trend be kept? Here is a question mark for this issue as for my consideration. As for us known, China has slowed its pace of development in these years. From various perspectives, like manufacture, service, and industry, China decreased its paces for a sustainable and a long-term goal. But what China really want to see is not sluggish economy and diffident 1.4 billions of people. It means China should be on the track of success but not totally stop its step.
For these consideration, there should be no wonder that we see a slower pace of the falling price of the Chinese real estate. Without any doubt, China made a great achievement by expanding the exports in the past years. As for the biggest exporting country currently, China’s development relies on trade heavily. Nevertheless, no one can ignore the real estate markets for a 1.4 billions of people country. Moreover, house is definitely an essential part for Chinese. People even say “no way to get a wife if you do not have a house” in China nowadays. The real estate also played an important role for Chinese economy. “Policymakers, who are concerned about the slowdown China’s economy, have been injecting liquidity into the market through piecemeal and targeted measures in recent months. Supporting the property market is also on their radar, as the real-estate market is estimated to account for nearly one-quarter of gross domestic product when construction, along with related industries such as furniture and raw building materials, are factored in.”(http://www.cnbc.com/id/102347827#.)Chinese government and Chinese people will not be willing to see a depressed real estate markets for a long time. Therefore, it is a right decision to take some actions to incite the markets to warm up the real estate markets a little bit for China.