»»China: Demographic Changes Will Cool the Property Market
According to survey by Chinese government, changes in population structure in China will cool the real estate market by 2008.
The study found that:
China’s birth rate, which peaked around 1965, has an influence on the current demand. Many people born during the two decades after 1960 were getting married and looking to purchase their own homes, around 2000.
After 1978 birth rate dropped significantly to 2 percent.
So, after 2008 these people will have all been over 30 and the majority will have been married. The house purchase peak will pass at the same time. According to an analysis, the number of marriages is likely to fall dramatically by 30 percent.House prices are dictated by market demand. With the changes in population structure it seems that the current boom could no longer last after 2008. (source)
Of course, many other factors, including urbanization and economic development, also influence China’s real state market.
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