Once characterized by the prolonged appreciation of house prices, China’s real estate market has stumbled over the past year. According to recent data, it does not seem to be recovering yet. In January, new-home prices rose in only 1 city out of 70 cities tracked by the Chinese government.
I wonder what effect this post-bubble market will have on domestic migration. Barring other factors like government restrictions, cheaper home prices certainly seem likely to spur further rural-urban migration. Of course, slowing growth – the main prick of the recent bubble – lingers on the other side.
The linked article does not mention it, but – from what I have read – the real estate bubble has been most egregious in China’s largest cities (pop >7million). I wonder then what the migratory environment is looking like between the largest cities and those that would seem small only in comparison to Beijing, etc.