Real estate in China

Real estate in China is developed and managed by public, private, and state-owned red chip enterprises.

In the years leading up to the 2008 financial crisis, the real estate sector in China was growing so rapidly that the government implemented a series of policies—including raising the required down payment for some property purchases, and five 2007 interest rate increases—due to concerns of overheating. But after the crisis hit, these policies were quickly eliminated, and in some cases tightened. Beijing also launched a massive stimulus package to boost growth, and much of the stimulus eventually flowed into the property market and drove prices up, resulting in investors increasingly looking abroad.^[1] By late 2014, the IMF warned that a real estate oversupply problem had arisen that threatened to cause detrimental effects to the Chinese economy, particularly in 2nd and 3rd tier cities.^[2] As of 2015, the market was experiencing low growth and the central government had eased^[3] prior measures to tighten interest rates, increase deposits and impose restrictions.^[4] By early 2016, the Chinese government introduced a series of measures to increase property purchases, including lower taxes on home sales, limiting land sales for new development projects, and the third in a series of mortgage down payment reductions.^[5]