Experts: Abolish tax benefits for real estate owners
Three renowned scientists demand the abolition of the tax privileges for real estate ownership. © Robert Günther / DPA-TMN Three renowned scientists are looking to abolish tax privileges for real estate owners. Investments in real estate would be massively favored in Germany for decades, criticize Ifo-President Clemens Fuest, the boss of the University of Cologne, Johanna Hey, and the Mannheim Economist Christoph Spengel.
© Frank Wagner / Getty Images Carbon emissions should also decrease in the fourth quarter 2021 according to Carbon Brief's preliminary data.
In the third quarter 2021, carbon emissions fell by 0.5%. An exceptional event since the beginning of the pandemic in one of the most pollute countries in the world. All that, because of the real estate crisis that is caught in China and leads less steel and cement production to build buildings.
In China, carbon emissions fell by 0.5% in the third quarter 2021 compared to the same period last year.
According to the new carbon brief analysis, carried out by the Center for Research on Energy and Clean Air, this decline occurs since September.
The Philippines denounce Chinese acts in South China
Philippines-China-Mer-de-China-South: The Philippines denounce Chinese acts in South China Sea © Reuters / Erik Castro Philippines denounce Chinese acts in South China Sea Manila (Reuters) - The Philippine government has firmly condemned the actions of three ships from Chinese coastguards, which, according to it, blocked two Filipino refueling boats and used water cannons These while headed for an atoll occupied by the Philippines at the Southern China Sea.
According to Carbon Brief, this decrease in CO2 emissions follows "a dramatic drop in the demand for building materials, precipitated by the collapse of real estate and the current scarcity of coal."
China is currently crossing an important real estate crisis, where the higher offer than demand, has dropped the buildings of new buildings. Chain reaction, steel and cement production, the second most emitting sector of CO2, declines since July.
The trend should continue on the fourth quarter according to the preliminary data collected in October by Carbon Brief, since steel and cement productions are down 23% and 17%.
Real estate crisis in China
To understand the real estate crisis in China, it should be known that real estate is the second largest sector in the Chinese economy behind the manufacture. The land belong to the provincial government. It rents promoters for specific periods, which themselves build and sell apartments or houses to ensure good profits.
until December 2020, the credits granted to buyers were advantageous. Many buyers have built for the purpose of reselling housing when market prices would increase. But new measures taken by the Chinese authorities to limit speculation and indebtedness in real estate have led to a decline in constructions.
Evergrande slides even deeper into the crisis .
worried about Evergrande's solvency have dropped the share price of the Chinese real estate giant on Hong Kong Stock Exchange on Monday by around 20 percent on a record low. © Picture Alliance / DPA Raw Buildings in Beijing. According to a report by the Financial Agency Bloomberg, citing informed persons, there is a restructuring of the company's credit burdens. Accordingly, Evergrande wants to involve all its US dollar bonds.