Zhang Xiaoming's Views on Rising Housing Prices Draw Criticism and Support from Netizens
Reining in real estate speculation is a critical issue for China's economy. According to Zhang Xiaoming, director general of the Institute of Finance and Director General of the National Financial Development Laboratory of the Chinese Academy of Social Sciences, a significant drop in housing prices may not be beneficial for the public.
31 October 2023
Zhang Xiaoming expressed his views during an interview with @Finance Magazine at the fifth edition of the Shanghai Finance Summit this year. He argued that many middle-income and low-income families would feel a decline in house prices is a blessing, as it would allow them to purchase homes earlier and potentially at a lower cost.
His views differ from those who wish for house price falls so they can buy properties at bargain prices. However, Zhang pointed out that over the past decade, the better the economy has performed, the higher housing prices have risen. Conversely, during economic downturns, house prices have tended to fall. Therefore, in order to prevent people from suffering losses, it is advisable for housing prices to continue rising.
On Weibo, netizens expressed various reactions to this opinion. Some users felt that Zhang's perspective was sensible and logical, as high house prices often lead to the wealth gap widening between the rich and poor. They also noted that rising house prices can act as a barometer for economic health and stability.
Others, however, were more critical of Zhang's stance. Some netizens argued that housing prices should be allowed to fall in order to make homes more affordable for ordinary citizens. They felt the government's efforts to control house prices could potentially result in widespread property speculation and a lack of availability of affordable housing options.
In addition, some netizens were concerned that the real estate policies implemented by the government may not be effective enough to address the situation. They pointed out that previous measures taken during financial crises had resulted in upward trends in house prices, but warned that these tactics might only provide temporary solutions and fail to tackle the root causes of the problem.
Buying a house is indeed a significant event for first-time buyers who lack experience. They may face confusion when trying to interpret real estate advertisements, choosing the location, selecting room types, or when visiting on site. Weibo users provided some practical tips and advice, such as paying attention to down payment, contract signing, and home inspection when buying a house.
In conclusion, while Zhang Xiaoming's views on rising housing prices aim to protect the economy from volatility, they also touch upon broader issues of wealth distribution and affordability. As for netizens, their reactions to his opinions illustrate the complexity and diversity of Chinese public opinion towards real estate policies and the issue of house price fluctuations. The effective implementation of new real estate policies will be critical in addressing these concerns and ensuring a stable and sustainable housing market for all.