The $52 Trillion Bubble: China Grapples With Epic Property Boom

The central problem in China is that buyers have figured out the government doesn’t appear to be willing to let the market fall.

If home prices did drop significantly, it would wipe out most citizens’ primary source of wealth and potentially trigger unrest.

That gives Chinese citizens who have enough money an incentive to keep buying because they believe property in large cities will remain the safest investment in China, regardless of the health of the broader economy.

Nice pic.

WSJ 16 July 2020

https://www.wsj.com/articles/china-property-real-estate-boom-covid-pandemic-bubble-11594908517

 

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