‘Houses should be for living in, not for speculation,’ President Xi said one year ago. But he finds status quo is hard to change.
China’s private property sector exploded, made possible by the market reforms and opening up policies that began in the late 1970s, and the countless millions of people who started moving from the countryside to cities.
Tight capital controls and painful memories of the 2015 stock market crash reinforced people’s belief that property is the best nest egg.
a bias toward male children during the one-child era has left a skewed sex ratio, parents and grandparents often pile their savings into a home to boost a male child’s marriageability chances.
In addition, school options are closely tied to home ownership, leading parents to buy “school district homes” – xue qu fang – whose purpose is not to live in, but to get a child into a top school.