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The study will reveal that around 22 percent of apartments in cities in China are uninhabited. That means 50 million apartments are built and not. The nightmare scenario with policy makers is that the owners of these houses will not rush to sell if there are signs of a break in the real estate market. That will make prices soar.
The latest data from the 2017 survey also showed that Beijing's efforts to curb real estate speculation came true. Chinese leaders say real estate speculation is a threat to China's social and financial stability, which could lead to siege or blocking actions.
Professor Gan Li from the University of Southwest Southwest Financial Economics, the report's author, said: "There is no country where the vacancy rate is very high. However, these houses will create flash floods with the Chinese economy."
One solution that Beijing can take to prevent speculation or job vacancies is high taxes. This is a very reasonable measure of policy but according to experts, it is very difficult to determine which apartment is empty. Meanwhile, job vacancies in China remained at 49 million units in 2013 compared to 50 million units in this year's survey.
Home speculation has made Chinese leaders nervous for years. Some cities and provinces choose to tighten their finances by purchasing more homes. However, this only makes home prices rise, worsening the problem for those who want to buy a home to live. In October last year, Chinese President Xi Jinping insisted: "The house is to stay, not to speculate."
According to Professor Gan, the Chinese government can conduct surveys in two or three years. However, like the difficulties faced by researchers, the survey will face many obstacles. The case of Natalie Feng, 27, is an example. Purchased by parents for a villa on the outskirts of Shanghai, his family often goes there for the weekend. However, it was not used all week because Feng found that there were too many difficulties to recruit him.
"We have to drive a car and spend half a day cleaning it so we can stay there for the weekend, and I hope my parents won't buy me that house because the other house I bought will be counted. The second house, which means I have to pay a large amount of money for that, "Feng said.
Bloomberg
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