China's Real Estate Market
Since the 1990s, China's real estate market has experienced a dramatic and long-lasting boom across China. This boom has led to substantial concerns in both academic and policy circles that the rising housing prices might have developed into a gigantic housing bubble, which might eventually burst and damage China’s financial system and economy. Motivated by this concern, this paper reviews the historical development of China’s real estate market, describes the real estate boom, and discusses its links to households, local governments, firms and the financial system.
This article is a chapter prepared for “The Handbook of China’s Financial System,” edited by Marlene Amstad, Guofeng Sun and Wei Xiong. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.