The Unassuming Economist

“Real estate has rebounded,” is one of the messages of the latest IMF’s economic report on China. The report says, “Real estate investment in 2012 accounted for 12½ percent of China’s GDP, 14 percent of total urban employment, and rising share of FAI. Lending to real estate is primarily for household mortgages and has slowed recently. The real estate market has shown signs of a recovery lately, with moderate growth in prices, investment, and sales and affordability indices have been improving and prices now seem to be broadly in line or even below fundamentals nationwide and in major cities. Over the medium term, residential construction is likely to slow as the market matures.”