Understanding China, One Blog at a Time

An American in China

China’s Housing Bubble is Bursting….

Posted by w_thames_the_d on December 23, 2011

This site talks about how China is slashing housing prices amidst a downturn cue to government controls on house purchases. A few years ago it was crazy here. Realtors hung outside their numerous offices offering near death traps for over $3000 per square meter. When this was not enough, they raised the prices to be in excess 6000-10,000 per meter.
For anyone who has lived here and been brave enough to spend a protracted period of time in the future disasters the Chinese call homes, you knew that the bubble could not last.
The problems is thta Chinese cannot invest freely in overseas markets, thus their options are limited. In addition, they realize that chinese stocks are a risk, so they purchase houses. The problem is that now uncle chicom is curtailing this behavior and an ensuing decline in house prices is inevitable.

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