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The Chinese regime’s efforts to de-gas its housing bubble appear to be working, according to new home value statistics released this weekend. Only, some economists warn they run the risk of taking it too far. Here’s that story.
China’s real estate statistics for November showed decreasing home values for the country’s 70 most developed cities. Numbers released by the National Bureau of Statistics on Sunday (December 18) showed the price of the average home dipped by 0.17 percent in November.
Home prices in “top tier” cities like Beijing and Shanghai were not immune. The Chinese regime’s economic leaders have been putting the squeeze on lending capital in an attempt to cool-off the booming housing market and drive down inflation. The result has been steadily falling home prices.
Whether or not this continues to be perceived as a good thing remains to be seen. At least some economists are worried that slowing China’s housing industry too much could have a dampening effect on the overall economy during a period of relatively weak global demand for Chinese exports. Home construction and housing-related industries currently account for roughly 25 percent of China’s GDP.