Worries about contagion from China's property crisis reached all the way to the nation's biggest developer. Long seen as one of the most financially viable property firms, Country Garden Holdings Co. is now caught up in the industry's liquidity crunch. Stephen Engle reports on "Bloomberg Daybreak: Australia."
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Something to understand about China's real estate market. As the article on population growth further above on FF points, there is a problem with Births.
China's one child policy lead to a shortage of woman.
Men hoping to get a woman as wife are out purchasing much housing as a sign of financial strength to entice a woman to marry.
There currently is a surplus of some 5 million housing units in China and value of the real estate market is based upon the notion that someone else will pay more for that inventory.
Supposedly 75% of China's common peoples wealth is tied up in real estate.
That prices may fall in real estate as well as rise just does not enter the Chinese thought process.
Housing Bubble in China is by far the largest economic bubble of all time.
That this is effecting all the developers is sign this is coming to end. Chinese consumer is going to enter the proverbial world of hurt as this unfolds.
China the country as reported that has 8plus% growth is now doing so grr...eat they are entering another easing cycle.
Then again political leaders always tell the truth. We read about this all the time in MM news articles.