What do you mean by hard landing and soft landing in the real estate market?

Soft landing of the property market refers to the macro-control measures taken to alleviate the overheating of the economy. Soft landing is used less, and the economic recovery may be slower, but the side effects are not great. Soft landing adopts a continuous policy combination to reduce the inflation rate relatively smoothly in a long period of time.

The advantage is that the sacrifice income is relatively small, and the disadvantage is that it takes a long time and may not be able to achieve suitable results due to the influence of public expectations. Such as deflation, rising unemployment, trade deficit and so on.

A hard landing refers to adopting a strong fiscal and monetary policy to reduce the inflation rate to a normal level in a short time by sacrificing more national income. The advantage is that a heavy punch can be immediate, and often the public has achieved the policy objectives without enough expectations. The disadvantage is that the economy is hit, usually with great side effects.

Extended data:

People summarize the criteria for judging the real estate bubble as "five highs", that is, investment continues to grow at a high level, consumption continues to grow at a high level, house prices continue to rise sharply, the proportion of real estate investment is high, and the ratio of house prices to income is obviously high.

These "five highs" are generally strongly related, not only high, but also continuous. The continuous standard of the definition of "high" is more than two years in a row.

The boundary between high and ultra-high is roughly as follows: the so-called ultra-high growth of investment and consumption means that the annual growth rate of real estate investment and consumption exceeds twice the GDP growth rate; The first is that the absolute price is high, and the second is that the house price is growing too fast in the short term, and the average annual growth rate of house prices reaches or approaches 2 digits; The proportion of real estate investment is greater than 25%; A high ratio of house price to income means more than 6: 1, or even more than 8: 1.

Baidu encyclopedia-soft landing

Baidu encyclopedia-hard landing