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China’s bold but risky move to address its property glut
Despite financing and execution risks, government purchases of unsold properties could have upsides – but ultimately it will be up to consumers to sustain the turnaround.
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According to official data, China had a combined floor area of unsold homes of around 3.6 billion sq ft at the end of 2023.
PHOTO: NYTIMES
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After more than three years of piecemeal, drip-fed measures to tackle China’s massive property glut, the Chinese government has at last chosen a bolder approach.
Citing Chinese Vice-Premier He Lifeng, China’s state-controlled Xinhua news agency reported recently that Beijing wants local governments to acquire unsold homes and turn them into low-cost housing.
