I just got around to watching these 60 minutes segments on China’s real estate bubble. The term “real estate bubble” isn’t coming from me. It’s directly from the mouth of China’s largest homebuilder, Wang Shi. He says it would be a “disaster” if the bubble burst.
The idea of a Chinese real estate bubble is nothing new, but it seems like the growth in “ghost cities” just keeps on going. Here are some of the frightening facts:
- Real estate is the main driver of growth.
- Real estate is being purchased because it “doesn’t decline in value”
- A standard Shanghai apartment is over 45X income.
See the full video here.