Those with unoccupied property insurance on properties which can’t sell might have some sympathy with what some economists see as the impending housing market collapse in China.
Often it’s falls in the housing markets which leave houses empty, giving rise to the need for unoccupied property insurance, and many believe that China is heading for a major crash.
Others are more sanguine about China’s housing market, saying that although some correction might be in the offing, the crash has been predicted for many years now and, inevitably, doomsayers will one day be proved right. Housing markets cannot keep rising at the pace that China has achieved over the last decade.
But China’s housing market is mirroring the fortunes of the general economy. The country is still achieving double digit growth – compare that with most Western economies which struggle around the 2% market – with economists saying that this cannot be sustained.
That’s true, but China is still a developing economy, so although some slack will have to come, it is still a country some way off yet from a major slow-down. And whereas it used to be a one-way street with China exporting far more than it ever imported, the aspirations of the growing Chinese middle class mean that China is starting to need true trading relationships with many developed economies.
Nevertheless, unoccupied property insurance will undoubtedly become major business in China, because even though it might not be a major disaster, just the threat of a housing bubble burst will be enough to send many owners running to their brokers.
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