A record decline in new-home prices in January has, as my Bloomberg News colleagues reported this week, prompted Chinese officials to contemplate additional stimulus measures, including reducing the required down payments on second homes and eliminating sales tax after only two years of ownership instead of five. – Bloomberg Dominant Social Theme: The houses are OK! And so are the empty cities. Free-Market Analysis: China's property problems have turned from a demand-side issue to a supply-side one. A few years ago, as we and others in the alternative media have pointed out at length, Chinese construction was booming even though demand was lacking. This is partially how China ended up with its "ghost cities" – actually empty or nearly empty cities built apparently on speculation.