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Q: Do you foresee the housing bubble breaking soon?
With only the rich buying property and the middle class saying no way to their prices when do you see the bubble breaking. Developers are running out of money and the rich are losing money hand over fist for noone can afford to pay double the price of what they originally paid for the apartment. We can see by the many empty apartments in neighborhoods, we can see only 50 out of 300 being occupied, development being stopped before the infrastructure is finished. So whats your opinion?
Will definitely break.
Pricing for house is ridiculous here in China,
i hope the bubble bursts , what if it bursted like the japan ?
China's economic expansion is gonna f*ck itself in the arse pretty soon.
You'll see a mirror image of the economic recession that's happening in the west as a result of the housing market spiralling way out of control.
well no is so sure, the business guys to interpret or keep in mind when they are investing the money in certain things like Warren Edward Buffett he invested and shared million of dollars in califorina fast train system and he said he will see the profit in coming years not right in the beginning its a long term process. so the same goes for china . wait and see whether it grows or break... investors are far more clever to invest their money not to invest for losing the money.....
china is growing economically stronger .......
I know some housing agents, they actually hope it bursts soon, that way the recession hits, housing prices go down and banks literallyy give loans quickly to almost anyone who has a steady job. Should be interesting. Although i agree with xerxes slightly, the investors like Warren Buffet are different though, they have money and time on their hands. The Chinese business men on the other hand have money but need quick turn around or the developers go under, if the developers go under the business men lose their money. Many over night millionaires in China but alot of those millionaires become overnight broke. The smart ones invested in over seas housing and reap the benefits with security by local governments. A house in China can buy your green card abroad, a nice house and a secure financial situation in a Western Country. Sometimes I admire Chinese business men and women, but then I think, why do they think so short term, long term is the key.
I dont think so, two reasons; The qovernment is wealthy enough to buy most of the US debt and still be cash rich, so the can put out a BIG fire in the RE sector. In the last decade or so, they have bailed the banks out twice and it didn't even put it dent in the budget. Maybe the developers and speculators will feel some pain, but the banks will continue to doll of the cash to any working stiff who is blindly following the plan of society. Secondly, there is great social pressure to buy a home and everyone is faithfull to this pressure.
When you look at how some people have to live in container houses while prices keep rising, you just have to wonder.
I recently changed flats. In a single year, the rent for my place increased by 500 RMB.
We are seeing it already, 9% down from six months ago. It is expected to go down 50% by 2013 anyother doubters
Yep. Like a soap bubble meeting the end of a stick. The speculation is already on western news sites, but proponates are crying "China haters," when in fact, it is a culmination of fraud, corruption, bad lending practices, and over inflated markets.
Recently, I read that 40% of all new construction goes unoccupied, be it residential or commercial. However, there is no way to check out the accuracy of the statistic, other than driving around the city, seeing what has been built, and what remains vacant. To me, observation lends it to be a much higher figure...
There is no housing bubble in China at all....Just house price is going to the highest point, people reluctant to buy house now.
Through some adjustment from central government, house price will go down to a normal high point. This is one good side about centralization system.
kchur:
There will never be a buying slowdown as longs as the "get married, buy a house" rule exists. Seems like most Chinese are 100% rigid on that one.
How do you conquer a city without a war?
Let's see, make property so expensive that no young workers can work and afford to live there, buy up property by mainland investors and then watch it crash and pick up the pieces in a fire sale for cheap and own the town and make everybody kowtow to your thinking and demands. Sounds like a good plan, let's do it. sorry already done, just waiting for the fall. Good bye Hong Kong.
