#ChinaRealEstate #PopulationDecline #HousePrices #EconomicImpact
Hey everyone! 🏡💸 Have you ever thought about what will happen if millions of homes in China go empty due to population decline? 🤔 Will house prices fall? 📉 Here are some points to consider:
– Real estate market could face a major shift
– Rent prices may decrease due to oversupply
– Economic impact on construction industry and related sectors
I wonder how this would effect real estate, rent and other prices. 🤷♂️ What do you think? Share your thoughts below!
One possible solution could be to repurpose empty homes for affordable housing initiatives or to attract new residents. This way, not only will the housing market stabilize, but communities will also benefit from increased occupancy. Let’s discuss and brainstorm ideas together! 💭💡
Not too much. China’s population decline rate is pretty gradual, about -0.2% a year. Even Japan which is one of the worst is only -0.4% a year. In the meantime, the average lifespan of a residential building is generally thought to be about 25-30 years, I.e. housing stock has a natural depreciation rate of about -3.5%. There’s no reason to believe that real estate prices will necessarily change dramatically.