Where is the Bubble?

What could derail the global recovery? How about a Chinese real estate bubble leading the charge.

Real estate in China has been on fire and is reaching classic bubble-like proportions, some much so that Chinese officials are trying to put the brakes on so as to aviod a America-style real estate collapse.

From Bloomberg

Millions of Chinese are pursuing property with a zeal once typical of house-happy Americans. Some Chinese are plunking down wads of cash for homes. Others are taking out mortgages at record levels. Developers are snapping up land for luxury high- rises and villas, and the banks are eagerly funding them. Some local officials are even building towns from scratch in the desert, certain that demand won’t flag. And if families can swing it, they buy two apartments: one to live in, one to flip when prices jump further. Read more here.

The question is how much of a global ripple effect will ensue….

This entry was posted on 31. December 2009 at 17:58 and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.