Here’s a ripper of a piece from the Far Eastern Economic Review (you know it’s good ’cause it’s banned in Singapore) attempting to explain China’s screwed-up property market.
“The end is near!” That was the message top government expert Cao Jianhai delivered in April when he predicted that residential property prices in China will plunge by half in the next two years. He reasons that China’s recent run-up in housing—average prices have tripled over the past five years—is unsustainable given the huge volume of new apartments sitting empty throughout the country.
You might think that skyrocketing inventories and squillions of empty apartments would be a recipe for a crash – and normally you’d be right. But read on to find out why It’s Different This Time.
Here’s something else that was Different This Time.
Also worth noting: we’re talking about the country that turned fermented tea leaves into an investible (and bubblicious) asset. Yeah, sure, it’ll be different this time.