What’s holding up Chinese property?

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Recall that three-quarters of Chinese floor space under construction is in lower tiered (3&4) cities, from the RBA:

Thus today’s bifurcated property market is important with prices stalled or falling in top tiers but still rising in the lower tiers:

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This is the advantage of Chinese macroprudential which, unlike Australia’s piss-ant efforts, has been strong enough to sit on bubbles where it needed to.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.