Why China’s Property Downturn Has a Silver Lining for Consumption
Some economists argue falling home prices allow families to save less and spend more. But a lack of confidence in growth may be holding back spending.
The One Avenue shopping center in Shenzhen, China.
Photographer: Gilles Sabrie/BloombergThis article is for subscribers only.
For Kim Li, a school teacher in a southern city in China, the decision to delay buying a house has freed up cash for spending on tourism.
“I have seen the quality of life of my friends drop significantly after they bought houses,” the 28-year-old said. “Now we are more willing to spend money on traveling, to see the world and not let housing tie our lives down.”