Relevant:
- China's Housing Gets Scarily Expensive
- China home prices rise most in nearly 2 years, big cities fuel bubble worries
- China Home Prices Gain in Half the Cities as Market Steadies
- China Home Prices Rise in Fewer Cities as Market Stabilized
- Roubini on China’s Unsustainable, Unbalanced Growth Model; China Unexpectedly Hikes Interest Rates to Counter Inflation, Exorbitant Home Prices
2017-03-20 — zerohedge.com
On month-over-month basis, house price growth diverged among different city tiers. Home price inflation decelerated in tier-1 cities, but home price inflation in tier 2/3/4 cities was steady or accelerated, which goes back to the core issue discussed last Friday: for all the talk about moderating home prices, China is first and foremost focused on preserving the wealth effect, which a sharp drop in home prices would crush.
...
In short, China evaluted the risk of a potential housing bubble burst, and deciding that - at least for the time being - it is not worth the threat of losing a third of Chinese GDP in "wealth effect", got cold feet.
source article |
permalink |
discuss |
subscribe by:
|
RSS |
email 
Comments: Be the first to add a comment
add a comment | go to forum thread
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.
