China unleashes new property bubble

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Just like the old housing bubble, via Bloomie:

China’s property market is shaking off the coronavirus effects as a gradual economic rebound and the further relaxing of centuries-old permits boost demand beyond the major hubs of Beijing and Shanghai.

…The fragility of China’s economic recovery from the outbreak and sky-high home prices haven’t shaken investors’ long-standing belief that real estate is a safe bet. Even as consumer demand and private-sector investment in the world’s second-biggest economy remain weak, property prices rose in May at the fastest pace in seven months.

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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.