History of Chinese Real Estate : How far we've come

                       

                       "It is essential to find a comfortable corner for yourself" 

                                                        

                                       ---Japanese architect and writer, Nakamura Yoshimitsu

This may be the first feeling we mentioned houses, but when houses are commercialized and market-oriented, our perspective should be more macro.

From 1949 to 1977, real estate had yet to become an industry. In 1980, Deng Xiaoping defined houses as commodities for the first time.

In 1987, the first land auction was held in Shenzhen, which marked the beginning of the commercialization era of China's real estate industry

The welfare housing allocation system ended in 1998, marking the opening of China's commercial housing market. Subsequently, under the stimulation of several major events such as the accession to the WTO and the successful bid for the Olympic Games, real estate prices continued to rise.

In 2008, due to the outbreak of the subprime mortgage crisis, real estate prices plummeted. Lower mortgage rates in 2009 sent real estate prices up again.

Since then, China's central bank has regulated the real estate market by continuously raising or lowering the deposit reserve rate, medium-to-long-term loan interest rates, and the deposit reserve rate.

Commercial housing sales area

（The legends of the three graphs are consistent）

Commercial housing sales price

Commercial housing sales

The source of the above three charts: NBS

In the long years of China's real estate development, it has gradually become a major pillar of the Chinese economy.

However, according to Zhu and Liang(2021), while the real estate industry has boosted economic development, there have also been many undesirable phenomena such as "speculation", soaring housing prices, "real estate bubble" and "triangle debt" 

As China's economic development enters  the "economic's new normal", "there are still scopes for sustained development and large market capacity if advantages are utilized properly"(Hong, Linjun, Tiantian, Vera, June 2016),