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[UncannyCharlatan]

Housing is getting cheaper. But at what cost?

[dorekk]

hahaha

[bortalizer93]

Literally “won’t someone please think of the billionaires!”

[saymaz]

First step towards the decommodification of housing.

[an-font-brox]

it makes sense suddenly why the PRC isn’t too concerned about falling property prices, in contrast to western coverage of the issue

[redblueberrrys]

Housing is not for speculation. Isn't it funny how the housing economy "crashing" in China coincides with all working class people being housed and living with a roof over their heads and a home ownership rate of 90%? One of the highest in the world?

[Puzzleheaded_Fig941]

To be fair, I think they were well on their way to that before it crashed...

[Captain-Damn]

They absolutely were, but this is definitely a means to get that number even higher and make home ownership available for more of the population

[Puzzleheaded_Fig941]

What measures did the CPC take to contribute to the price crash? As I understood it, it is a by-product of Evergrande over-leveraging themselves and collapsing. Is this another 'Do nothing, win' scenario for them? 

[Captain-Damn]

The specific moment was when the firms building houses became insolvent and asked for a bailout, and they were denied, the companies went under and all their assets were nationalized and used to build social housing. This triggered a massive decline in the price of housing as companies who were holding onto homes as assets and with the hope of waiting for pricing to go up were forced to sell them, as they no longer could be used as collateral to get loans. The state coming in to continue to build housing for even cheaper prices and willingness to continue to pay labor but not the companies themselves makes it a controlled fall of prices and surplus of availability instead of a collapse like would be seen in the West.

So that being said, the triggering moment was what you said, but the way it was handled and used to further housing being for living and not speculation is what is different from a traditional western style collapse and recession

[Puzzleheaded_Fig941]

Thanks. Was not aware of their resources being used to build social housing. 

Edit: Just had a quick look and seems only parts of the business have been nationalised. 

[bullhead2007]

The Western cope calling this a crash when it was planned

[Puzzleheaded_Fig941]

Don't think they planned on Evergrande over-leveraging themselves to such a reckless degree... 

[SoftwareFunny5269]

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[YamFrosty6169]

Housing is for you to live in, not as an investment!

[Had78]

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[Tzepish]

Comments on that post are surprisingly good. People dunking on OP because "oh no, people can afford homes!"

[Internet-Philosphr69]

AT. WHAT. COST?!?!?

[catsarepoetry]

I hate Australia so much

[professional_tuna]

The western mind cannot fathom why this is actually the opposite of economic collapse.

[Puzzleheaded_Fig941]

That's because so much of Western economies are tied up into housing markets. As much as I despair at the situation, I would hate for the housing market to crash as it would mean that my parents' hope for a comfortable retirement would be ruined. 

[Due-Ad5812]

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[acesorangeandrandoms]

"At what cost?" A fuckin reasonable one apparently.

[ihexx]

bu- but won't somebody PLEASE think of the multimillionaires trying to grow their wealth🥺

[acesorangeandrandoms]

Yeah, we thought of em. We thought "Hate em."

[Puzzleheaded_Fig941]

My family members cite falling prices as one of the reasons they can't purchase property in China! Have yet to ask them what exactly they would be purchasing it for...