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Academic Journal of Business & Management, 2020, 2(7); doi: 10.25236/AJBM.2020.020710.

China’s Overheating Real Estate Market and its Relation to Economic Development


Yumou Song

Corresponding Author:
Yumou Song

Business Administration, University of British Columbia, Vancouver


China’s real estate economy and land economy, with aspects of the environment, law, business finance and resource management, has experienced continuous growth since 2002. Additionally, the fact that China’s real estate market has experienced such changes in a brief period is of interest and even more so in terms of how this relates to the wider Chinese economy. China’s surplus monetary liquidity has also become a catalyst for increases in housing prices. Real estate investment provides an ideal opportunity for investors to counter-balance high inflation and uncertainty. It is also a diversified form of investment, offering higher and stable returns. While investors and some owners benefit from such wealth, implications for others such as financial instability and the overheating of prices must be acknowledged. Negative consequences could be alleviated though the use of government regulations, but the unpredicatable nature of real estates makes the implementation of public polcies an even tougher task.


China, land economy, estate economy

Cite This Paper

Yumou Song. China’s Overheating Real Estate Market and its Relation to Economic Development. Academic Journal of Business & Management (2020) Vol. 2, Issue 7: 84-90. https://doi.org/10.25236/AJBM.2020.020710.


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