Jump to content
House Price Crash Forum

The Connection Between China's One-Child Policy And Its Housing Bubble


Recommended Posts

I found this interesting link about how house price in China are linked to the one child policy. The summary is that there is a shortage of brides and to egt the bride you have to show that you are wealthy and buy a house.

The reason? Intensified marriage market competition, says Zhang. ”The reason is that people have to buy a house in order to get married,” he says, explaining that the mothers of most brides will accept only grooms who can provide a home for their daughter.
If the matchmaker tells them they need to build a taller house, they make it a little bit taller than neighbors,” says Zhang. “Families are building two-story or three-story houses, but if you go to second or third floor, there’s no furniture at all—it’s only to show off their wealth … to make sure their son will get married.

The one child policy drives up prices now, but will ultimately be the downfall of it all.

Because they lack siblings, the vast majority of Chinese couples 34 and younger are the sole inheritors of four parents’ wealth. When they die, their offspring get at least two extra homes (and, given investment trends, likely more). This extra supply will drive down prices, says Zhang, and because of the one-child policy, China will have too few young people to absorb the overspill.

This will sink in by around 2020. But the policy could affect the market even sooner. China’s working age population—the most likely new homebuyers—is about to start falling (official statistics say it peaked in 2012; the UN says 2015).

Here is a full link to the article: The Connection Between China's One-Child Policy and Its Housing Bubble

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.