Xi (Foolishly) Plans Communist Answers For China’s Property Crisis.
www.forbes.com
Beijing's planned takeover of Chinese residential real estate might cloak the nation's property crisis, but it will surely kill China’s fundamental economic momentum.

If the leaks and rumors are true, Beijing stands ready to launch a new and radical solution to the economy’s property crisis – a government takeover. What the authorities refer to as “a new model” would replace the old emphasis on ownership with more rentals and use government funds to buy up bankrupt properties so that in time the government’s role in real estate would rise from 5% of the market at present to 30%. Such an act would surely take the nation back to its communist roots if not quite the days of Mao Zedong. If it would veil the property crisis for a time, it would in the long run do tremendous damage to China’s economic prospects.

xi-peel

  • betelgeuse [comrade/them]80•4 months ago

    Since US prices are so high, they were salivating at a Chinese housing crisis. That way they could enter the Chinese market and buy up properties for cheap. But since the government is going to buy up the cheap homes, they can't enter the market. So now comes the propaganda tantrum about how there's no way this will work, it's evil, it's authoritarian.

    Problem is that shit only works on Americans. Appealing to Chinese people's sens of individualistic English property rights doesn't really work.

    • context [fae/faer, fae/faer]53•4 months ago

      you nailed it

      also forbes about u.s. commercial real estate:

      Finally, while it will be a tough year or two for the commercial real estate community, I expect the amount of capital on the sidelines will open up the market and create once-in-a-lifetime opportunities. As the old adage goes in real estate, "It is not the first or second but the third owner who makes money on a project." The opportunities will be plentiful, but the buyers will have to view the assets through a new lens.

    • Tankiedesantski [he/him]50•4 months ago

      Since US prices are so high, they were salivating at a Chinese housing crisis. That way they could enter the Chinese market and buy up properties for cheap. But since the government is going to buy up the cheap homes, they can't enter the market.

      Incompetent Chinese property developer: "I consent!"

      Soulless American hedge fund: "I consent!"

      The Communist Party of China: "Was there somebody you forgot to ask?"

      The myth of consensual market entry.