Home Sales Plunge 44% in Xiamen; Bubble Busts in TianjinHow bad is the damage?
China's property bubble is now on the verge of collapse. Transaction volumes are significantly down and declining volume is how property bubbles always burst. In simple terms, the pool of greater fools eventually runs out.
In China's case, the pool of fools is heavily involved in "loan shark" schemes where speculators hope property values rise fast enough to cover the interest.
A typical Beijing flat costs about 22 times average incomes in the city, state media said Monday, highlighting the challenge China faces providing affordable housing amid a property boom.The Real Effect
A 90-square-metre (968-square-foot) apartment in Beijing cost 1.6 million yuan (236,000 dollars) last year, the China Daily said, citing an independent report.
That compared to an average household disposable income of around 71,000 yuan in 2009, according to city figures.
Soooooo... Just who is going to buy all that Treasury debt now that China is entering it's own "Financial Crisis"? Waiting....
No comments:
Post a Comment