China’s Real Estate Bubble Soars to new Heights

Chinese Academy of Social Sciences (CASS) has found China’s Real Estate bubble has soared in urban areas despite repeated efforts of the central government to keep it under control.

It has found the city of Fuzhou has the most expensive housing predicted to be 70.3 percent overvalued. Hangzhou and Nanning follow with over-valuations of 66.9 and 66.8% respectively. Larger cities such as Beijing & Shenzhen faired better at only 49.5 and 48.5% overvalued.

Ni Pengfei, director of the Research Center for City and Competitiveness at CASS warned “The country’s macro economy overwhelmingly relies on real estate, and people might invest in real estate when confronted by inflation.”

ยป Cities see a new spike in real estate bubble – The China Daily, 9th December 2010.


  1. Most sensible people must realize by now Australia has an unpredictable future. Nobody can forecast exactly when the collapse will occur but there is little doubt it will occur sometime and the longer this goes on the greater the collapse will be. Australia is both protected and threatened by the growth of China. They saved us during the GFC but if they do catch a cold the effect on Australia will be dire. It will me more akin to catching the bubonic plague than pneumonia. And if the boom continues for another twenty years? History should teach us that a scenario of diminishing resources and increasing demand must lead to disaster. China wants our resources They don’t want to pay over the odds. Lets hope the battles they fight for those resources are limited to economic ones.

    Zetaboards Australian Property Forum

  2. hmm, I dont think it’s so black and white. If China slows down some other country will step in to provide the world with cheap plastic and metal crap.

    I’d be more concerned about the end of cheap oil.

  3. Average bloke, world consumption of oil had been dropping year on year last I heard, and the trend looked set to continue.

    The USA has released a report proving they can shift their energy needs to renewable energy (not sure if this included transport energy) for no net expense.

    Say did you know last year an oil field was found in Dakota that is larger than the Saudi’s?

    Oil would be far cheaper than it is now if OPEC didn’t continue to keep cutting supply.

    If you think the ‘crap’ from China is cheap now (you been on ebay or other foreign consumer site, I swear they can send the stuff from China cheaper than I can interstate..WTF??)), wait until the bottom drops out of their currency.

    The USA dollar is doomed to fail (after all, their reserve bank is making funny money to buy bonds to keep interest rates low). This alone will cause huge distress to the China economy–without even considering how reliant China is on stimulus.

    There is absolutely no way that all this economic tug-of-war can end calmly. No way at all.

  4. Many products from China are of very good quality even if they are cheap, like the Japanese products of the 70s. To refer to them all as crap is an ill informed bigoted comment. China will the economic super power of the future. Australias prosperity is guaranteed as Chinas quarry!

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