Given its centrally administered economy, who knows. But the latest real estate market statistics suggest a bust cannot be too far off. According to NPR:
- Chinese property sales rose 75% in 2009
- The price of a new apartment in Shanghai is up 68% year on year
- 85% of Chinese cannot afford to buy properties
Of course, “not everyone is convinced there is a property bubble”.
China is one overcrowded trade right now. I am all but convinced that China’s collapse will be spectacular.