Commentary: Two Ways to Lift China Real Estate Out of Its Slump

Of the two major headwinds facing China’s economy this year — a weak real estate sector and subdued consumer spending — the first deserves more attention from anyone looking for more immediate results in bolstering the country’s economic recovery.

There are two reasons why real estate is an issue worthy of greater consideration. First, consumption depends in large part on residents’ income growth, their future expectations, and spending habits — none of which can be changed in the short term. All the government can do now is stabilize their expectations.