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Real Estate Bubble

“China’s Real Estate Bubble Popping Too?”

By | Scoop | No Comments

According to The China Daily, in September and October, only 10,743 homes were sold in Beijing, down a whopping 46% from last year. New home sales in the first 10 months totaled 69,079 units down 17.8% year over year, while existing home sales dropped 35.8% to 101,188 units.

It should come as no surprise that rapidly rising residential real estate prices have accelerated both inflation and income inequality causing the Chinese government to demand that developers lower prices.

So before you panic that China is somehow mysteriously immune to economic challenges caused by rapid growth and gaining an unfair advantage, rest assured that they are about to learn what many a nation before them has discovered…no economy is immune to bursting bubbles!