Housing sales accounted for one-third of the total retail sales in 2009. In recent years, direct tax on real estate has become the main source of local revenue for local governments.
People’s Daily Online reported that no developer is willing to sell apartments at lower prices. Recently, a new wave of housing price increases has appeared in many regions of China.
In many countries, housing is considered a public good like water, electricity and gas. Residents will not spend more money on consumption to enhance their living quality and drive economic growth unless the housing issue is addressed first. In addition, without the provision of social security housing, the living and investment value of commercial housing cannot be fully demonstrated. That the situation is unbalanced is clear. What is not clear is how the situation can be brought into balance again without undue trauma.