Zhang Qizuo: Housing Inventory May Take 3 to 5 Years To Digest

Zhang Qizuo, the Director of the Center for Strategic and Economic Development Studies for G20 and Emerging Countries, says the housing inventory and manufacturing overcapacity may take 3 to 5 years to work through, and maybe even longer. Almost 90% of the housing currently under construction has not been sold.

Behind the overcapacity is money printing and high leverage, and a conspiracy between the local governments, developers and banks to hijack the housing market and create a bubble. Basically everyone rich and poor has bought homes. If someone with no money hasn't bought a house yet, they're out of luck, they're helpless. Should the government bailout the housing market with stimulus, it would only conceal the current bubble this year, and next year an even bigger bubble would emerge that would easily burst.

iFeng: 专家：楼市去化库存或需3至5年 谨慎楼市泡沫