China's housing market: When it all comes crashing down

[cronus]

http://www.chinaeconomicreview.com/hous ... correction

China's housing market: When it all comes crashing down

Residents in Tangshan are very familiar with the concept of oversupply. A severe glut in the steel industry has put many jobs at risk in the northeastern Chinese city that counts the metal as one of its primary exports.

But the oversupply garnering attention today in Tangshan is in its property sector. Years of frenzied construction have crowded the city's skyline and, as demand slows, prices for apartments are falling rapidly.

In the past year, the price of new housing in some developments has fallen from around US$1,603 (RMB10,000) per square meter to about US$961.8 (RMB6,000), according to Chinese media reports. For anyone who bought at the height of the market, such a sharp drop in prices is the equivalent of the floor falling from beneath their feet.

Tangshan has vast housing stock, much of which could sit empty for years. Between 2009 and 2012, the city was building about 17.4 million square meters of housing space. Yet at the local rate of consumption, some 1.46 million square meters per year, it would take more than a decade to exhaust this supply.

(continued)

[MrJonno]

Hmm British housing overpriced to a state its a complete joke oh to speak Chinese

[macdoc]

So is Canada's and Australia's - our economic metrics are so fucked and 2008 was a cake walk compared to what's coming.

Cautionary reading



http://www.economist.com/node/4079027

http://www.economist.com/node/4079458

a search of this

economist 2005 housing market fall

will bring some frightening articles....and it's all happening again because predators are not only going unchecked....they are positively encouraged..

[klr]

Meh. Ireland has ghost estates, Spain has ghost apartment mega-complexes, China has (or will have) ghost cities.