Tuesday, January 1, 2013

China face rising urbanization for decades

China will benefit for rising urbanization well into the 2030's. China's spending wave (derived from demographics) should top already in the 2020's but urbanization should continue to contribute positively to economical development.

The graph above shows the urbanization trend in China. The trend should continue with the new leadership emphasizing reform policies that will facilitate the urbanizing rural population that now works in the cities. Some officials have suggested a policy to give immigrants urban status faster so that they can benefit from social supports which are normally available to urban residents.

Urbanization has always been a big driver for the housing market since people need to buy a house for their family.

Geir Solem

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