This goes nicely with the complaints from USA about oversupply of China in petrochemicals, etc. Oversupply is a problem from a strict efficiency issue, but oversupply can be extremely useful in robustness against unforeseen and foreseen problems with indeterminate time lines. For example, if USA or other large refiners should have economic collapse, damage to key infrastructure, natural disasters like Tsunami, etc. then those excess capacities may become essential capacity. The same holds true for housing.
This goes nicely with the complaints from USA about oversupply of China in petrochemicals, etc. Oversupply is a problem from a strict efficiency issue, but oversupply can be extremely useful in robustness against unforeseen and foreseen problems with indeterminate time lines. For example, if USA or other large refiners should have economic collapse, damage to key infrastructure, natural disasters like Tsunami, etc. then those excess capacities may become essential capacity. The same holds true for housing.
I assume the restriction on buying second homes was to reduce speculative buying? A better policy might be to simply reduce the debt-to-value cap?
And also impose a levy on apartments that are not occupied (by the owner or a tenant), and so discourage holding empty apartments. Just my suggestion!