China is considering two new programs to shore-up the property market, according to a new report from the Wall Street Journal:
One involves the state buying up distressed private-market projects and converting them into homes that the government would rent out or, in some cases, sell. The other calls for the state itself to build more subsidized housing for low- and middle-income families.
It’s a country dealing with a housing crisis so the initial plan doesn’t sound crazy but the details of it are troubling as it says the goal is to get at least 30% of Chinese housing stock in state hands from around 5% today. That also fits into the more-communist leanings of Xi in the last couple years.
The cost is pegged at $280 billion/year for five years or a total of around $1.4 trillion.
The story repeatedly highlights that Xi is bent on deflating the property bubble.
The report is here.