Over the past 20 years, China's real estate industry has developed rapidly and has become one of the main engines of economic growth. The housing prices in first-tier cities such as Beijing and Shanghai in China are among the most expensive in the world. The ratio of housing prices to residents' income is far higher than that of major cities in the world such as New York, Paris, Tokyo and London.
The World Bank's China job email list Economic Brief, released in June, concluded that by the end of 2021, China's real estate investment accounted for 13% of GDP, compared with only 5% in OECD countries; "If supply chain inputs are considered The real estate industry accounts for about 30% of China’s GDP.”"Therefore, a disorderly adjustment in the real estate sector will have significant economic consequences."
The solution proposed by the World Bank to China to solve the current real estate problem is that the goal of the policy in the short term should be to stabilize the market and create conditions for the orderly reorganization of the market.