dude, cant you keep your rhetoric to yourself or post on anti abortion sites. I dont see how it relates to the real estate market in China, apparently the topic of the OP.
lol, do you think Nikkei was overpriced at 20,000 around 1987? Well it doubled from there before all came down. If you want me to make a prediction: I believe all markets will crash some time in the future, and I believe the world will end. When? Hmm, .............well.......... Why do you think its "READY" to burst? Any professional insight other than what you read in USA Today?
strongly disagree. Why? Because unemployment hits the masses, the poor, the untrained and uneducated. However, the real wealth that is currently built and maintained is by the middle to upper-middle class, and this class consists almost entirely of a white collar workforce in tier 1 and 2 cities. Employment in this segment is very inelastic to global demand because most of the more skilled, non-manufacturing, labor force works in domestic businesses, companies that service and serve the domestic market. You cant look at western societies and labor markets to try to explain the Chinese market. Chinese society is cut into at least 2 segments, those who are left out, those who toil in factories or are employed in farming or sit around in government owned or sponsored "not interested in profit" entities, without the slightest prospects of promotion or further training. And then you have a white collar work force, entrepreneurs, foreign trained returnees who represent most of the wealth that is current generated. There are a number of "business men" who own to the tune of 30-40 apartments in Shanghai and struck it rich that way. Some of those never saw a university from the inside, nor are trained in anything. They may have been lucky in their timing, some used gray or outright illegal channels and relationships but nonetheless they built their wealth, something that cannot be replicated anymore compared to several years ago.
thats why i said the trigger is unemployment. look up china stimulus and compare it to USA stimulus. Where does the money come from?
20 years average salary? I love Chinese statistics. How much do you really think the true average person in China earns? Let's take a convenience store worker for instance. Let's take the really high end and say around 2,500 dollars a year, and a flat will cost you a lot more than 50K, so 20 years is a pipe dream. Not only that, but you also have to consider that the quality of the construction in China is not any where near what you get in the US, so most homes and condos tend to deteriorate very quickly. And you want to talk about low down payments and low income requirements to buy a home or condo in China? They make the US look strict a few years ago. The banks there are in much deeper trouble, however, they just cover it all up. Also, bankruptcy is not an option there. You pay, or you go to jail. If we still had debtors prison, the crisis here would have been far smaller, but we're a free country.