Categorized | International

China’s Housing Data Tough to Predict

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China’s real estate market is, without a doubt, one of the most important factors in determining the state of the global economy. Experts are worried, however, as the data behind the market is very weak at best.

What troubles experts most about the data from China is the discrepancies that are apparent when comparing the National Bureau of Statistics to the numbers provided by the Chinese government. According to China’s government, prices of new apartments in Shanghai have increased by more than one hundred and fifty percent in the past five years alone. On the other hand, the National Bureau of Statistics has found that prices have only increased twenty percent in that same time period.

While both figures show that China’s real estate market is on an upward trend, the variation makes life very difficult for analysts when trying to gain a clearer picture as to the future state of the global economy. The reason why accuracy in numbers is important is that China’s housing market is incredibly important in building the nation’s economy, as well as the economies of other nations such as Australia and Brazil.

Prices on housing units also are very influential on government policy, as well as the decisions of investors. Increasing housing prices lead high spending investors to jump into the market and fund highly ritzy projects. It also provides for more jobs through construction and manufacturing.

The experts continue to worry that the inaccuracies presented in the data may cause greater problems with respect to the nation’s housing bubble. Inaccurate numbers can lead to misguided policies that could create a bust on a global scale.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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