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"Losing 30 trillion" is a very entitled view on decreasing real estate prices. Those 600 million people making 1000 CNY/month or less (and probaly another 300 m
by loglog 2y ago
"Losing 30 trillion" is a very entitled view on decreasing real estate prices. Those 600 million people making 1000 CNY/month or less (and probaly another 300 million making a bit more) will be happy for a respite in being priced out of everywhere. This literally increases their purchasing power.
- alephnerd 2y ago> Those 600 million people making 1000 CNY/month or less (and probaly another 300 million making a bit more) will be happy for a respite in being priced out of everywhere Those 600 million cannot afford to buy real estate even at the crashed price. The going rate for a 2bhk in a tier 2/3 is still $100-300k, which is still unaffordable given that median urban household income is $6k and median rural household income is $3k. And this is the crux of the problem in China - all this "overproduction" isn't necessarily due to some grand strategy, it's due to a lack of consumers because salaries are too low.