How the real estate bubble in China links to the traditional centering on education
- The “Examination Hotels” leased sofa in lobby and security offices to examinees at the same price as the hotel rooms.
- After signing the purchasing contract of one school district house, the buyer requested, “Now can you show me the house?”
- The school district house buyer recharged the seller’s cellphone only to call for an inquiry.
Residential prices in China grew fast in the past decade. According to Goldman Sachs, the total value of Chinese homes and developers’ inventory hit $52 trillion in 2019, twice the size of the U.S. residential market and outstripping even the entire U.S. bond market.
Education is one of the key factors that contribute to such rapid growth in China’s real estate market. Let’s first take a look at what happened recently during China’s graduate school entrance exam for 2021.
The “Examination Hotel”
The 2021 national graduate school entrance exam was held from December 26 to 28, 2020. There are 37 million applications for this test. Recently, more and more candidate for the graduate entrance exam chooses to stay in a hotel which is near to…
