n Tydskrif vir die Suid-Afrikaanse Reg - The Chinese real estate industry with special reference to urban housing and land reform initiatives (part 1)

Volume 2011, Issue 4
  • ISSN : 0257-7747
  • E-ISSN: 1996-2207



The National Bureau of Statistics shows that in 2008 the value added by China's real estate industry accounted for more than 5% of China's gross domestic product. The statistics also show that there were approximately 6 300 real estate development enterprises across the country, employing roughly 1,72 million people. Following the global financial crisis of 2008, the state embarked on numerous policies to stimulate the real estate industry, including tax breaks and interest rate cuts.

While some praise the real estate industry for its positive contribution to the economy, others fear the dangers of overreliance on real estate. The Chinese government worries that rapid growth of the property market in major cities like Beijing, Shanghai and Shenzhen may cause the market to peak and crash very quickly. In a speech Jiabao warned: "Property prices have risen too quickly which deserves great attention." The central government is seeking ways to keep soaring house prices in check in order to keep the real estate market stable and healthy. While the rapid appreciation of real estate yielded extraordinary returns to investors and developers, consumers are bearing the consequences of developer malpractice and high prices. The state is striving to allocate land more efficiently and protect agricultural land from conversion.

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