2 ms·
I'm extremely worried about China's real estate bubble. Chinese labourers are working their asses off, while factory owners crop most of the profit. These money
by r_u_i 17y ago
I'm extremely worried about China's real estate bubble. Chinese labourers are working their asses off, while factory owners crop most of the profit. These money is pours into real estate market. Today an apartment is worth 30X anual income of an average worker(my estimation). Hope when I finish grad school in US and go back, I don't have to pay this much.
- trevelyan 17y agoNot until China relaxes its exchange controls. As long as the RMB can't get out of the country to investments offering higher return, there's nowhere else for it to go.
- barredo 17y agoA devaluation of its currency should mitigate that (all that debts their citizens will have) afaik.
- garply 17y agoI sympathize. I run a wholesale / delivery bakery in Beijing. I've been looking for a storefront for over a year, but am convinced that most people who've signed rental contracts to do retail within the past year or so are currently losing money. That is to say, I think the cost of commercial real estate (and likely residential) is currently too high. But that seems to indicate that it will eventually go down - if enough people start realizing they can't turn a profit with the property they're looking to rent, demand will sag, and prices should follow. But maybe not in the near future - we've been seeing some serious inflation over the past couple of months.