One of the few economic sectors where the rising and affluent middle class could invest was real estate and construction.
As much as 30% of China’s economy is housing-related. Families have tied their savings into apartments. No one is renting them.
In Shanghai, buying an apartment costs 45 times the annual income of a typical Shanghai worker.
But that may have created the largest housing bubble in human history. It’s easy to understand why everybody talks of a bubble when you go to China and check it out.
The most populated nation on earth is building houses, districts and cities with no one in them.
The world’s economy will suffer a great blow if the Chinese economy seizes up.Source: Business Insider – “This ’60 Minutes’ Video Of China’s Ghost Cities Is More Surreal Than Anything We’ve Ever Seen”
- China’s real estate bubble – 60 Minutes (macromon.wordpress.com)
- China’s Housing Bubble Goes Mainstream America (zerohedge.com)
- Re: China’s Real Estate Bubble…about to burst? (libertycaucus.net)
- China to flatten 700 mountains to build a city (chinadailymail.com)