Real Estate
China’s Unworkable Housing Rescue Math Is Prolonging Crisis
- Local cities have made little headway since big rescue in May
- Buying unsold homes will further stress local government debt
To address funding concerns, China is considering letting local governments use special loans to purchase excess residential units.
Photographer: Raul Ariano/BloombergThis article is for subscribers only.
In May, China’s central government urged more than 200 cities to buy unsold homes to ease oversupply. More than three months later, only 29 have heeded the call.
The glacial pace of implementation — driven in large part by the unattractive economics of the plan for local governments — underscores the challenge President Xi Jinping faces as he tries to arrest a record property slump that’s threatening to undermine the country’s growth targets.