Real estate in China

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.

[1] As of 2015, the market was experiencing low growth and the central government had eased[2] prior measures to tighten interest rates, increase deposits and impose restrictions.

The phenomenon has seen average housing prices in the country triple from 2005 to 2009, possibly driven by both government policies and Chinese cultural attitudes.

[14] The BBC cites Ordos in Inner Mongolia as the largest ghost town in China, full of empty shopping malls and apartment complexes.

[19] To avoid sinking into the economic downturn, in 2008, the Chinese government immediately altered China's monetary policy from a conservative stance to a progressive attitude by means of suddenly increasing the money supply and largely relaxing credit conditions.

[22] In Australia, Chinese buyers were approved for AU$32 billion of commercial and residential real estate investment in 2015–16, the most of any country.

[25][26] Government agencies continue to pay less than 20% of market value for real estate, and many officials purportedly misappropriate renovation and housing reform funds for personal gain.

[29] The adoption of stricter regulations triggered turmoil in the Chinese real estate market and led to bond defaults by developers and in some cases bankruptcy filings.