CBS - China's real estate bubble

[arthur]

Of all people, Vanke's CEO was quoted saying China property is in a bubble and its dangerous to China economy with current property price. Vanke is China largest property developer.

Frankly I have no idea how this would move on, as China avg investors do not have much avenues to invest, beside local stocks and properties. Perhaps state capitalism would ultimately stem the outflow of liquidity and defuse the bubble to a later era.

[freedom]

Is it really a bubble? hard to say.

if the price of housing holds and the income continues to rise and the interest rate continues to fall, it does not look like a bubble any more. Plus, the bubble concentrates in a few cities only, not all over China.