Covid-19 in China: the pandemic exacerbates the speculative mechanism in residential real estate
Auteur : Natacha Aveline-Dubach, directrice de recherche CNRS (UMR Géographie-cités), spécialiste des questions urbaines en Asie orientale.
Production : Blog Cybergeo conversation, espace participatif et interactif autour des publications de la revue Cybergeo
Diffusion : Sur la plateforme hypothèses (https://cybergeo.hypotheses.org/)
Date : 27 octobre 2020
One of the striking effects of the Covid 19 pandemic has been the dramatic increase in the disconnection between finance and the real economy in the United States and Europe. In China there is a similarly growing disjuncture between house prices and economic fundamentals. Both cases show a process of asset inflation driven by a frenzy of investment in a context of deflationary pressure. But the comparison ends there, because the dynamics of real estate investment in China respond to the logic of a sui generis capitalist regime that has placed the extraction of land value at the heart of its economic model.
Source : Natacha Aveline-Dubach, “Covid-19 in China: the pandemic exacerbates the speculative mechanism in residential real estate”, Cybergeo Conversaton, 27/10/2020. URL : https://cybergeo.hypotheses.org/883 (consulté le 16/02/2021).
Photo “à la une” : Figure 1. The growing budget deficit of local governments in China © Cybergeo / Natacha Aveline-Dubach