Real estate boom in China could trigger economic growth volatility and financial crisis.
Real estate investment in China affects economic growth more than the other way around. Economic growth has a bigger impact on real estate investment than vice versa. Real estate purchasing has a greater effect on economic growth than real estate development investment. Real estate loan is more crucial for developers than for purchasers. Economic growth influences real estate loan more than the other way around. Economic depression reduces real estate loan but not real estate investment. Real estate price has a bigger impact on real estate loan than economic growth or interest rate. Preventing sharp increases in real estate prices is important to avoid financial crises.