Says the narrator: "Non-existent supply for non-existent demand."
Hong Kong financial analyst Gilem Talick: “...multiple generations/classes of Chinese are going to be wiped out, and 50 million construction workers will lose their jobs.”
China’s bggest home builder Wang Shure of Vanke: “Homes in China are too expensive. There is a bubble of course and it will burst and its going to be a disaster.”
Analyst Anne Stevenson Yang: “The debt crisis is starting...”
Says it all.
CBS has this short bonus feature on their website in which Analyst Anne Stevenson-Yang explains how China's real estate boom was created -- and what might happen to property owners if the bottom falls out...
CBS has this short bonus feature on their website in which Analyst Anne Stevenson-Yang explains how China's real estate boom was created -- and what might happen to property owners if the bottom falls out...
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Someone must have watched 60 minutes, because all Chinese property sectors down at open.
ReplyDeleteThe most interesting times in human recorded history are upon us.
You do realize that the phrase "May you live in interesting times" is an ancient Chinese curse.
DeleteI hope the homeless will just move in once the dust settles. Brilliant on the Chinese gov't move, fool the peeps into building/buying for all the homeless.
ReplyDeleteYup. And here we still get the bubble deniers....
ReplyDeleteI would faint if Canadian or US media did a piece like this on the Vancouver/Canada bubble. The parallels, though not as enormous in their scope, are stunningly noticeable.
ReplyDeleteHow many local folk, whether in the RE industry, media, or your own friends and acquaintances, think (or thought) that "the party would go on forever"?
I was a bit surprised to see the first business person interviewed say that China will have democracy within 20 years and the second business person say he fears a Chinese "Arab spring." Obviously Chinese business people don't have to worry about sharing possibly dangerous political opinions with foreign media. Yet they still block twitter?
ReplyDelete... They'll be fine as long as they do the tried and true trick of using the capital export limits of peasants to move their money out of china as fast as they make it.
DeleteOther than stupid low interest rates, the two factors goosing Vancouver's RE bubble...
- illegal capital exports from China
- illegal drug money
But its all above board because Canadian authorities / governments would never condone such shady activities (and doesn't look to see if its happening just in case).
How does any of this affect me?
ReplyDeleteThanks for posting the videos!
ReplyDeleteWhen can CBC fifth estate do a balance piece regarding Canadian housing bubble? I know CBS 60 Minutes has a reputable crew, ...
ReplyDeleteChina wins in scale, sounds like New Dehli beats Vancouver on stupidity.
ReplyDeletehttp://www.nytimes.com/2013/03/03/world/asia/new-delhi-bungalows-even-in-disrepair-command-millions.html?_r=0
W.... I was there a few months ago... and in the South East... its not just a couple cities.... its ... every single city... that has dozens and dozens of empty 50 storey buildings. Its really incredible. Saw that story tonight. Very interesting. ....V
ReplyDeleteAnother reason this spells disaster is that all the money that has been made in China is being funneled out just as fast. The money does not stay in the country to build the country's poor with better education, better health care, and social services. Instead, billions are benefiting the US, Canada, and Australia; by buying real estate and making overnight millionaires in other countries.
ReplyDeleteThames Town in Shanghai got me interested. Pity I didn't get a chance to visit there when I was in the area. Weather was poor at the time and I was only there for a day.
ReplyDeleteI got a laugh when searching about it. Apparently there's a coffee shop there appropriately named "Incomplete Coffee".
Official site link of coffee shop:
http://www.thamestown.com/shop4.htm
So aside from wedding people, the other large groups of people are cosplayers..
http://travel.cnn.com/shanghai/play/shanghai-thames-town-327844
You cannot use the same metrics to say China RE is going to bust. In fact the whole market is on the rise and thats why the commies are using many measures to cool it. Remember the commies are a different thing from us. They always build first move people in later.
ReplyDeleteHong Kong financial analyst Gilem Talick: “...multiple generations/classes of Chinese are going to be wiped out, and 50 million construction workers will lose their jobs.”
ReplyDeleteIf the manufacturing sector in China crashed, we'd have a big global problem. Real estate in China crashing - will not be catastrophic.