Vigorous promotional efforts in China’s housing market appear to have had little effect as real estate sales fell far short of expectations in 2014. Some are concerned that the Chinese real estate industry is on the brink of collapse.
CCTV America’s Zou Yun interviewed Zhu Min, the managing director of the International Monetary Fund before the opening of the 2014 Annual Meetings of the IMF and World Bank. Yun asked him whether the slowdown of the industry will lead to a bust in the market.
“Whole industry restructuring is inevitable, but the key issue is whether it will have a hard landing,” he said. “In China, the demand is still there. There’s 100 million people moving to cities from rural areas who are still looking for housing, so demand is there. How do we ensure that this potential demand will convert into real demand for the housing market, I think this is very important… and also we need to look at supply, because industry consolidation is inevitable so we need a policy to facilitate this real estate sector and consolidation.”