Investor confidence in the Chinese property market is extremely low ahead of news of further regulations to “curb the exuberance in the housing markets.” Housing prices will apparently take a major hit once these regulations take place that will help shape the housing market that has gotten out of control in Chinese cities. One of the major implementations is a forceable tax on the profits gained through real estate sales. The governemnts main concern over the heating up of the housing market is that if prices keep rising higher, there will no longer be affordable options for lower income families. This threatens a larger economic and social instability to keep growing.
Source: Wall Street Journal