China Property Market ‘Bubble’ Set to Burst

[Arraya]

http://www.bloomberg.com/apps/news?pid=email_en&sid=ahn8uHc.dmcc&source=patrick.net
China’s property market “bubble” is set to burst as the government curbs credit growth and clamps down on speculation, according to independent economist Andy Xie.

As bank lending slows, “it’s very difficult to see this demand continuing,” Xie, formerly Morgan Stanley’s chief Asian economist, told Bloomberg Television in Hong Kong today.

Tougher property policies may lower 2010 sales volumes 10 percent, compared with an earlier forecast for growth of as much as 5 percent, BNP Paribas said in a report today. The Shanghai Composite Index has slid 10 percent this year, the worst performer among the 94 global gauges tracked by Bloomberg, on concern that China will add further lending curbs. The index dropped 0.2 percent to 2,934.71 today.

snip

The government last month raised the amount of money banks are required to keep as reserves and re-imposed a sales tax on homes sold within five years of their purchase. Premier Wen Jiabao pledged in December to stabilize property prices, crack down on speculation and keep housing affordable.

[AK]

While I think the Chinese “recovery” can’t last forever, I have to remember that pundits have been predicting a collapse at least as long as local realtors have predicted a “flood” of REO inventory …

[AK]

While I think the Chinese “recovery” can’t last forever, I have to remember that pundits have been predicting a collapse at least as long as local realtors have predicted a “flood” of REO inventory …

[AK]

While I think the Chinese “recovery” can’t last forever, I have to remember that pundits have been predicting a collapse at least as long as local realtors have predicted a “flood” of REO inventory …

[AK]

While I think the Chinese “recovery” can’t last forever, I have to remember that pundits have been predicting a collapse at least as long as local realtors have predicted a “flood” of REO inventory …

[AK]

While I think the Chinese “recovery” can’t last forever, I have to remember that pundits have been predicting a collapse at least as long as local realtors have predicted a “flood” of REO inventory …

[briansd1]

The Chinese property market is the luxury high-rise market in Shanghai and other cities.

Yes, the bubble in that market will pop, but China will go on undaunted. China is like America + Canada + Mexico + Central America + the Caribbean, all in one. China is not all the same as Western reporters (who live in Shanghai and don’t even speak Chinese or know the culture) report it.

Compare to America as we were industrializing. There were many property bubbles that popped. But we thrived nonetheless.

Real estate data is very sparse. The data does not reflect the whole entire market.

[briansd1]

The Chinese property market is the luxury high-rise market in Shanghai and other cities.

Yes, the bubble in that market will pop, but China will go on undaunted. China is like America + Canada + Mexico + Central America + the Caribbean, all in one. China is not all the same as Western reporters (who live in Shanghai and don’t even speak Chinese or know the culture) report it.

Compare to America as we were industrializing. There were many property bubbles that popped. But we thrived nonetheless.

Real estate data is very sparse. The data does not reflect the whole entire market.

[briansd1]

The Chinese property market is the luxury high-rise market in Shanghai and other cities.

Yes, the bubble in that market will pop, but China will go on undaunted. China is like America + Canada + Mexico + Central America + the Caribbean, all in one. China is not all the same as Western reporters (who live in Shanghai and don’t even speak Chinese or know the culture) report it.

Compare to America as we were industrializing. There were many property bubbles that popped. But we thrived nonetheless.

Real estate data is very sparse. The data does not reflect the whole entire market.

[briansd1]

The Chinese property market is the luxury high-rise market in Shanghai and other cities.

Yes, the bubble in that market will pop, but China will go on undaunted. China is like America + Canada + Mexico + Central America + the Caribbean, all in one. China is not all the same as Western reporters (who live in Shanghai and don’t even speak Chinese or know the culture) report it.

Compare to America as we were industrializing. There were many property bubbles that popped. But we thrived nonetheless.

Real estate data is very sparse. The data does not reflect the whole entire market.

[briansd1]

The Chinese property market is the luxury high-rise market in Shanghai and other cities.

Yes, the bubble in that market will pop, but China will go on undaunted. China is like America + Canada + Mexico + Central America + the Caribbean, all in one. China is not all the same as Western reporters (who live in Shanghai and don’t even speak Chinese or know the culture) report it.

Compare to America as we were industrializing. There were many property bubbles that popped. But we thrived nonetheless.

Real estate data is very sparse. The data does not reflect the whole entire market.

[Author]

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