Some Fear Chinese Real-Estate Bubble Soon to Burst

[Edgebotv4]

vast empty cities built in the middle of nowhere

if that isnt an indicator of a problem... i dont know what is

[blueice990]

@Edgebotv4 demands will increase as an economy developments, thats the wonder of a developing economy. Empty dwelling in west is a problem because the demand is usually stagnant.

[VNKillschinks]

I guess china will just self-explode & die without any foreign intervention. Good :-)

[badsign1980]

china will ber superp+ower based on what please tell me? slave work?theres cheaper? goods? chinas goods are crappy only poor buy them. industry? made in china dosent mean chinese they are western companies... china is a bubble the banks control the world, they are using china making chinese filled with pride in illusion they do it all the time, they want to put you in debt with banks, even if you where world power who would buy your goods?rest would be so poor, only cheap shit would exist

[fdoca]

China raised down payment fo buy a house to 50%(From 40% earlier)

Why? cz t000's buy 2rd or 3rd houses as investment vehical, thus, raised the housing price, Give U ideal, see how fasst

Build 140 airports in next 5 years

Build 20,000 km bullit train(278mph) underway in next 6 years

Build 10 nuclear power plants in next 5 years

China will be a mega superpower in next 200 years so, based on current avaerage income cacu and history of Taiwan, Singapore, Hong Koung experaince

[nawkrm]

When a ballon is over blown, it will burst, very simple physics.

[mathpianist93]

@nawkrm: true, but did you ever consider the heavy cash-down requirement for home purchases in China?

[nawkrm]

@mathpianist93

Normally it's 20% in average. The major problem is that many people are buying as speculuative investment. They just want to flip properties for profits. The bubble is not defined by the downpayment, its defined by % of speculative buyers. So when the bubble bursts, it brings down the banking system and the economy because majority of speculative purchases are financed by banks.

[mathpianist93]

@nawkrm: I think for second home purposes, there should be a requirement as follows: you had to be able to afford the first home COMPLETELY BY CASH, and this one must also be paid 100% BY-CASH.

but thankfully mainland has avoided US problems - people buying homes with non-existent money

[nawkrm]

@mathpianist93

To eliminate speculative buying with borrowed money, I think all profits should go to government when a property changes hands if the property was first purchased with loans from banks. This alone could eliminate most speculators from driving up the prices in the first place.

[BiggerThinking1]

@nawkrm not if its infinitely plastic.

[nawkrm]

@BiggerThinking1

All plastic has limits.