In China, most real estate in hands of speculators?
August 17, 2010 | Posted by Chris
While it's been widely reported that real estate in China is red-hot and the government has taken measures to cool it down, a new report published today by Bloomberg sheds new light on residential real estate in China's big cities.
According to the report, 51% of all Shanghai apartments, 66% of all Beijing apartments, and 70% of all units in tropical province Hainan are presently empty, belonging to speculators waiting for a return on their investment. Bloomberg writes:
The rampant speculation in real estate in China is understandable, given that last month year-on-year prices grew by 10% -- and that is the slowest pace in 6 months.
And whether or not this represents a real estate bubble -- expert opinions span the spectrum from "What bubble?" to "Global doomsday" -- these stunning statistics reflect the unique situation and challenges that China faces. With so many people and such limited space, Chinese leaders will be hard-pressed to keep housing costs within the reach of ordinary citizens, a problem that is surely among other high-priority domestic issues.