Whitepaper
Investment Insights
China’s real estate sector has been significantly impacted by the introduction of the three red lines policy, eventually leading to a liquidity crunch in the sector. The impact of the initial policy measures is considered to be short-lived, as the housing market downturn and developer risks could have been worse than what was expected earlier. However, more concrete measures will be needed for a substantial recovery in the sector.
The untamed rise in housing prices over the years has resulted in unaffordable housing for the people
The increasing thirst for capital by highly leveraged developers looking to cash in on the rising prices and strong demand created a bubble-like situation in the housing sector.
The industry will witness a continued deterioration in the key real estate indicators when additional policy measures are introduced.
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