Why has China's real estate been strong and not collapsed?

The most important reason is that the central and local governments in China are strictly controlling the real estate market. The government holds the new construction land supply, development and construction funds, loan policy and tax rate system, and uses measures such as property purchase restriction to heat up or cool down the real estate market, thus playing the role of temperature regulator.

Extended reading:

The value of real estate comes from two parts, one is the value of the house itself, and the other is the value of the land where it is located, so the appreciation of real estate is not the appreciation of the house, but the appreciation of the land where it is located.

With the continuous development of urbanization, local finance is increasingly dependent on land, and there is a potential endorser with the largest house price behind the real estate market in all parts of China: the government. With such a credit guarantee, the purchase of real estate has become a kind of behavior with only income and almost no risk.

In such a low-risk situation, any rational investor must choose to increase leverage and enlarge investment as much as possible, so we have seen the prevalence of high-risk projects such as down payment loans and foreclosure loans in the Internet financial market. This is the rigid redemption of real estate investment in China, because as long as you buy a house, you can get a stable source of income, and real estate stands out in the capital market.