China's Concrete Empire

The Chinese housing market has boomed, overwhelming the economy's rapid growth itself. That's how the links between households, local authorities, banks and developers work. rent
One of the largest and most important centers of leverage and economic activity worldwide is a Chinese assets market which barely existed three decades ago.

The property sector in the country has developed rapidly, construction and asset prices have grown and the leading real estate developers in the country have been made one of the world's largest companies.

The Chinese National Statistics Bureau figures show that real-estate investment has outstripped GDP growth for most of the last two decades, except for short financial stress periods in 2008-0 9, 2015- 16 and the first quarter of 2020. This means debt has mounted both on developers and families who purchase the properties with negligible foreign investment.


In China, virtually no housing was owned privately in 1978. Strong experimental reforms led to the wholesale privatization of the stock of public housing in 1988. The real-estate giants of todayóand their future billionaire ownersówere born in the early and mid-1990s.

In December 1987, Shenzhen held his first land use rights auction, a practice imitating selling in Hong Kong, still under British control a few miles south. The model would eventually become a major source of funding for cash-strapped local governments throughout the country.

Homes for sale disappeared in housing markets like Cape Cod and the shore of Jersey.
During the coronavirus pandemic, a number of high-end markets saw the number of homes for sale decline dramatically. A thorough examination of why, plus an interactive stock tracker for buyers and sellers
He bought this house on 5 acres in Fall City, Wash, with Kristian Erickson and his girlfriend Cori Walters. It was listed at 1,182 million dollars. There were 13 bidders, Mr. Erickson and Ms. Walters for 1,451 million dollars.

The US real-estate market was essentially shut down to an unprecedented rally in the past whipsaw pandemic year. Increased demand in many areas has now worsened the supply of homes on the market. The result is a serious shortage of inventories across much of the country.

The Wall Street Journal partnered with to analyze the inventory of luxury immobilized markets across the country in this year's real estate guide. (The Wall Street Journal's owner, News Corp, also operates under a National Association of Realtors licence.) Our data examined more than 1000 ZIP codes for an average price of $750,000 and more and we compared average monthly inventory levels in March 2020 to February 2021 from the beginning of 2017 through the end of 2019. The results showed that in holiday destinations such as Cape Cod and the Jersey Shore and exurbs of major cities were the most dramatic inventory drops for commuters.

On the other hand, there have been substantial increases in the number of homes for sale since the pandemic in some luxury markets. They are mostly dense urban areas with a large proportion of condos and co-ops or homes for single families on small lots: Several districts in Los Angeles, as well as areas of New York City, San Francisco, Silicon Valley, Seattle and Boston, were witnessing large inventory upticks.

In the many sectors in which inventory has declined, buyers are creative to distinguish themselves from the pack. Some buyers write a love letter to the seller, including pictures and an explanation of the offeror's plans for the house.

DJ and Lauren Bowser found a single family house in the Miracle Mile neighborhood of Los Angeles with this strategy. After being overbidden on three properties, they bid a house for 1,299 million dollars. Together with their $1.485 million offer they sent pictures of their dog Bear and a letter stating that Bear was an apartment dog who loved a backyard. It worked: They got a $1,4815 million house (they had some seller's loans) in the form of seven other offers, one higher than theirs. According to the real estate agent of Bowsers, Stephen Katz, the seller loved the photographs of Bear, who said that he also had a very strong offer.

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