The Chairman of China Construction Bank, one of China’s largest mortgage lenders, told investors that “there’s no money to be made” in the Chinese property market due to soaring prices and low occupancy rates, according to the South China Morning Post.
Speaking at a forum hosted by Peking University’s management school, Tian Guoli exhorted that “if you insist on buying a home, aren’t you trapped at the high price level?”
China’s housing market has for decades been a solid investment for families with few other outlets for their savings. However, skyrocketing prices and vacancy rates higher even than the US before the subprime mortgage crisis have cast doubt over the sustainability of the market’s growth.
Furthermore, the government has been in two minds about how to treat the problem. While the threat of a bubble led authorities to introduce curbs to cool the overheated market, a slowing economy appears to be pressuring some cities across China to lift these measures in order to stimulate wider growth.