Everyone’s Talking About China’s Property Bubble
Everyone’s Talking About China’s Property Bubble
“Has the property market gone mad?” asked China's People's Daily.
Even Wang Jianlin thinks it's a bubble. PHOTO: REUTERS
By JACKY WONG
Sep 30, 2016
Even Wang Jianlin thinks it's a bubble. PHOTO: REUTERS
When China’s loudest voices start worrying about the country’s red-hot property market, something must be up. People’s Daily, the mouthpiece of China’s ruling Communist Party, warned this week that recent rapid price appreciation could lead to more property speculation, instead of working hard. “If we have lost the will to work hard, we will be homeless no matter how many houses we have.” That follows an article last week titled, “Has the property market gone mad?” The week before, the overseas edition of the newspaper said “high fever shouldn’t be the norm state of the property market.”
Then China’s richest man, property and movie magnate Wang Jianlin told CNNMoney that China’s real estate market is the “biggest bubble in history.” China’s property cycle tends to follow government policy, rising when lending is easy and falling when the taps are turned off. Investors should start to get the message: The taps are shutting.
http://blogs.wsj.com/moneybeat/2016/09/30/everyones-talking-about-chinas-property-bubble
