China's fake economic growth, real estate bubble, China economy growth rate

In 2020, China claims its total GDP reached 101.6 trillion RMB, an increase of 2.3% from 2019, which is the first time China's GDP exceeds the 100 trillion RMB mark (or about $14.7 trillion USD) and reached 70% of the United States’ GDP for the first time. It is three times the GDP of Japan, which ranks third highest in the world, and nearly four times the GDP of Germany, which ranks fourth.
In 2020, China’s total retail sales of consumer goods reached 39.2 trillion RMB, accounting for 38.6% of the total GDP, down 3.9% from the previous year. Fixed asset investment of 51.9 trillion RMB, accounting for 51.5% of GDP, up 2.9%.
Fixed asset investment and real estate development investment alone reached 14.1 trillion RMB, achieving an added value of 7.45 trillion.
It is worth pointing out that in 2020, the number of people employed in the real estate sector in China only accounted for 0.38% of the employed population.
This shows that real estate was one of the core driving forces of China's economic development last year. In fact, the contribution of the real estate sector to China's economy has gradually expanded over the last 20 years.
Over a 20-year period, the value-added of real estate grew at a rate of 78%.
Housing affordability in China.
An important indicator of housing affordability is the ratio of house prices to household income. A special study was completed by Shanghai E-House Real Estate Research Institute in March this year, titled "A Comparative Study on Housing Prices in 50 Cities Across China". The study found that in 2020, the average value of housing price to income ratio in 50 cities was 13.4, up 1.4% compared to 2019. Among them, the four cities of Beijing, Shanghai, Guangzhou, and Shenzhen, have an average house price to income ratio value of 26.6, with Shenzhen being the highest at 39.8.
Housing prices have two main components: the price of land and the price of the house. In China, all land is owned by the state.
Statistics on the revenue obtained from land concessions in 2020 in 44 major cities nationwide reveal that the ratio of revenue obtained from land concessions to tax-based revenue exceeded 100% in 20 cities and 50% in 39 cities.
According to statistics, the average premium rate of land auctions in April reached 25.4%, the highest in the past three years. In particular, Chongqing’s premium rate is as high as 44%.
By pushing up the price of land, the Chinese government has reaped the wealth of society, while pushing the real estate industry bubble bigger and bigger, and getting China's GDP figures better and better.
As land gets more expensive, so do houses. Unaffordable housing and mortgage payments are common among young people in China. Therefore, it is now popular among young people to "lie flat", which means to not buy a house, not buy a car, not get married, not have children, not spend money, and only maintain a minimum standard of living, refusing to become a money-making machine or a slave for others.
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Видео China's fake economic growth, real estate bubble, China economy growth rate канала China Observer