BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/04
The trends on China’s real estate markets have long raised concerns among observers. Further fuelling uncertainty is the wide coverage of the financial struggles of some major real estate developers. Real estate markets have a significant effect on local governments, which earn considerable revenues from the sale of land use rights. Demand for land use rights has been hurt by the slowdown in growth of the real estate sector.