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How Big Is the Chinese Property Bubble?

SeekingAlpha |

In Brief...

Since the USA, the beacon of capitalism was the epicentre for the current crisis and the Chinese economy escaped relatively unharmed, there is a certain logic in asserting that the central planners in China have the right economic prescription.. Katsenelson compares Japan's property bubble of the late 1980 s to modern day China and the results aren't pretty, from the article: You can see how big a problem this became in big cities such as Beijing and Shanghai where the affordability ratio is horrible, so the property-value-to-income ratio in Beijing is pushing 15. The national average for China is pushing 8.2 times right now. Similar to new cars in the U.S. when taken off the lot, in China an apartment is worth less once rented out.

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